4 Reasons Why Hollywood Real Estate is a Good Investment
You might be intrigued why Hollywood real estate is a good investment. Although they are usually priced steep, the returns are still on the positive side.
Here are the reasons why you may consider investing in Hollywood properties:
1. Prime Location Property with High Returns
It sells because it's Hollywood! A prime real estate property to begin with, it sells because of its great location, being the center of the U.S. entertainment industry.
As shown in the LA Times map of Central LA, Hollywood is flanked by high-end properties like Hollywood Hills and Beverly Hills, as noted by Curbed. Thus, Hollywood in no time, will increase its real estate value, many times over.
On Zillow, a map with the respective listings and their current prices on the market were also shown. Most properties are priced in millions!
2. Influx of Tourists and Retirees
Hollywood being the center of entertainment industry, always receives a great number of visitors from all over the world.
There's also some anticipation of welcoming retirees in Hollywood. One out of six retirees usually relocate to a different state, says a Merrill Lynch study done in partnership with Age Wave, as reported by Bank of America. With 11 million expected to retire soon in the Baby Boomer generation, some of them will go to Hollywood eventually.
With the influx of these tourists, buyers and retirees, Hollywood would continue to be a hot real estate market.
3. Easier to Sell
Chances are, these homes for sale were once used in movies or were owned by famous celebrities. This is already a golden marketing strategy to resell your house. Celebrity homes are usually, realtively easier to sell. People would often be intrigued by how celebrities built and designed their homes to suit their needs.
The houses previously owned by celebs really provide the buyers with the luxury fitting of their money's worth, because these famous stars --- with their wealth and their connection to people with discriminating taste --- do often have such glamorous and wonderful homes as Huffington Post reported.
4. More Techies Go to LA
Recently, LA Times revealed that several technology entrepreneurs, started buying LA properties. "Minecraft" creator Markus Persson spent $70 million for a Beverly Hills Mansion in December while Jeff Bezos of Amazon.com dropped $24.5 million for a Beverly Hills compound, LA Times noted.
Even Sean Parker, of Napster and Facebook, laid down $55M for Ellen DeGeneres' Holmby Hills home last year, LA Times added.
"We've seen an uptick in buyers from the technology industry over the last several years - some moving to Los Angeles and some buying second homes here, as a kind of peaceful retreat," said Charles Black, the listing agent in the Persson sale, as reported on LA Times.
In a matter of time, Hollywood, being a central district in Los Angeles, could become an even modern and glamorous version of itself, thanks to these bright businessmen entering the L.A. scene.