Between the sunny weather, the booming tech market, and the beautiful scenery, it’s hard to miss Californiareal estate.
Where Should You Invest in California?
After decades of success operating out of the Westside region of Los Angeles, we can tell you that finding those new listings across California can be a lot of work.
From Santa Monica to Beverly Hills, there’s always another real estate investment opportunity in this hyper-prime market—from home buying to commercial real estate.
That’s why we’re so excited about Brentwood, a Westside neighborhood with significant investment potential.
To understand why Brentwood is so compelling, let’s look at the characteristics that make real estate unique in the first place, the trends that determine a hot market, and how we can see these in action in Brentwood.
Why Is Brentwood A Good Place For Real Estate Investment?
Brentwood is a suburban neighborhood in the Westside region of Los Angeles. It’s about 10 miles away from the Sunset Strip, 10 miles from the coast, and surrounded by some of the most competitive neighborhoods in the city.
The Pacific Palisades area is to its east, Bel Air is to the north, and Santa Monica is to the south.
Brentwood’s Location Makes It A Hyper-Prime Market
Brentwood is near the most alluring features Los Angeles has to offer. All the while, it’s a quaint suburban neighborhood in which residents can feel at home. Its short distance to downtown, the coast, and local parks make it an extremely valuable location.
What Are The Population Demographics of Brentwood?
The last census determined that over 33,000 people live in Brentwood. Distributed over its 15 square miles, Brentwood’s population density is amongst the lowest in the city.
The median income for Brentwood households is a staggering 112,000, with an average household income of over 200,000. To say that Brentwood has a high capital infusion is an understatement—it’s an extremely affluent neighborhood.
Brentwood residents are highly educated, with over 70% of people in the area holding four-year degrees.
Brentwood’s Demographics Make It Competitive For Real Estate
The high capital levels in Brentwood mean that real estate assets tend to be very high value. Homeowners here are more affluent than in most areas in the city, leading to more competition for the best assets and driving up their value.
What Are Brentwood’s Most Attractive Features?
Beyond its great location relative to other parts of the city and the high level of capital infused in the market, Brentwood has a few unique features that contribute to its highly competitive property value.
Brentwood has some fantastic hiking options in the area. It borders Topanga State Park, which offers residents a vast expanse of natural beauty right at their doorstep.
The Getty Institute calls Brentwood home, offering locals a front-row seat to premier cultural attractions worldwide.
With plenty of boutique retail options, Brentwood offers its residents everything that an exclusive Los Angeles neighborhood has to offer.
Why Is Real Estate Such A Good Investment?
Property in Brentwood can be extremely high value, but why get into real estate first?
Real estate has unique characteristics that set it apart from other asset classes. When you understand what makes real estate different, you can utilize its strengths to benefit your portfolio.
These characteristics become more pronounced with high-value assets like those in Brentwood.
Here are the four special characteristics of real estate.
- Permanence of Investment
Why Is Real Estate Scarce?
For one, the land is a limited resource—it’s one of a few things we can’t manufacture. As a limited resource, the development of an area necessarily lowers the supply, driving up value.
Additionally, development can take a long time and a lot of money. This keeps the supply of real estate fairly low, to the extent that supply exceeds demand is extremely rare.
New construction in Brentwood is relatively low, amplifying the scarcity that drives property value.
What is Scarcity?
Supply and demand is a straightforward law of economics we can all understand. When supply is low and demand is high, the value goes up.
Real estate is almost guaranteed to have a degree of scarcity that consistently keeps supply low. And considering that demand for property is almost always high, the scarcity of real estate makes it a hot commodity that investors can bank on.
What Are Improvements?
Because real estate is a physical property, investors can take action and increase its value by improving it.
Stocks or bonds don’t allow investors the chance to have a say in the increase or decrease in the value of their assets. Real estate, on the other hand, can affect hands-on, giving investors a higher degree of control over the value of their assets.
How Does Improvement Work?
Improvements can be simple or complex. Refurbishing the carpeting in a bedroom qualifies as improvement in the same way as a fully renovated kitchen. Any upgrades to a property can help increase its value.
Just keep your receipt from the hardware store. Improvements made to the already high-value assets in Brentwood help investors skyrocket their value.
What is Permanence of Investment?
Every investment into a real estate property is there for the long-term, securing your capital in stable investment.
This is because the capital that goes into real estate is effectively a permanent addition to the structure. Investment into a real estate asset safely raises its value without the risk of a steep decline.
With every investment made, the baseline value of the asset rises.
What Makes Investments In Real Estate Permanent?
Investments in a real estate asset are extremely difficult to undo, adding to their long-term value.
These kinds of investments can vary in intensity depending on the improvements made to the property.
For example, structural alterations to a property that connects it to the larger community, like its electrical or plumbing system, are so integral to a property’s value that they are effectively permanent.
What Does Location Mean For Real Estate?
Real estate depends almost primarily on location. At the end of the day, real estate investors, renters, or property owners of every kind are deeply influenced by a property’s location.
For commercial spaces, location can play a seminal role in the amount of business going through the building. The value of residential spaces is deeply driven by location. Homeowners or renters want to live in a safe, stable area that reflects the values of their ideal living space.
How Does Location Affect Real Estate Value?
A good or bad location can drastically affect the value of a real estate asset.
A single-family home on N. Bundy Drive in Brentwood or a townhouse on S. Barrington Ave will be far more valuable than similar homes for sale in rural areas.
From New York to Los Angeles, homes for sale within a city can vary drastically from neighborhood to neighborhood.
At Christina, we’ve honed a robust buying strategy that zones in on niche markets within hyper-prime cities like Los Angeles. From Bel Air to Santa Monica to Brentwood, our team zeroes in on the most lucrative commercial properties and homes for sale.
What Trends Should You Look Out For?
With a better understanding of how these characteristics affect the value of a given asset, you can make more informed decisions to optimize the performance of your properties.
To optimize a property’s performance, apply this knowledge about your real estate assets within the larger context of market trends surrounding the property.
A better grasp of the characteristics of real estate utilized with the prevailing market trends is an equation for success.
Here are some market trends to keep an eye on in Brentwood.
Rental demand is a definitive measure of the competitiveness of the real estate market in the community.
Real estate investors earn their returns from income-earning properties like rentals, so assessing the rental demand of an area can provide investors with key insight into the community’s potential.
High Rental Demand Is A Good Sign
The avg rent for Brentwood residences is $2,495—there’s high demand for residences in this popular neighborhood.
Considering that real estate scarcity tends to keep supply low, high demand for rental properties becomes a good sign that Brentwood is prime for investment.
Increasing demand for a limited supply of rental properties allows property owners to utilize market competitiveness to their advantage and rent their properties at a premium.
An area’s population growth gives investors a key metric to assess the potential for real estate performance.
More people in town means an increased demand for housing. As an area’s population ticks up, investors get an early indicator that property values are rising.
Population Growth or Decline Can Be Used to Your Advantage
Investors can safely reason that property value will follow when a population is on the rise. This indicates that it may be a good time to get on board with real estate in that area.
Alternatively, a diminishing population may translate into an increase in supply in the market. When people are leaving town, property values may decrease.
Population growth in Brentwood has risen steadily over the past decade, so it may be an ideal time to jump in on these high-potential properties.
Job growth is a safe indicator that the local economy is becoming stronger and more stable.
With more people finding employment in the area, there’s an increase in capital infusion. This kind of capital infusion makes property values more competitive.
Job Growth Raises Property Value In Many Ways
Firstly, more people moving to an area for work will need a place to live. This increases the demand for residential properties and housing.
With more people finding work, the likelihood of folks having the money to upgrade their living situation increases.
Finally, businesses hiring in a given area will also expand, leasing more commercial spaces to conduct their business.
The vast majority of households in Brentwood have white-collar jobs, with an average household income of well over 200,000 dollars. There’s substantial capital circulating in Brentwood, making it hyper-competitive for real estate.
Invest With The Best
Brentwoodreal estate is hyper-prime. It’s far more difficult to buy into this highly valuable real estate.
Leave that to us. Our portfolio is built on the lucrative properties Westside regions like Brentwood have to offer.
Invest in the best real estate in the country with the best real estate developer, manager, and sponsor in the city.