Amazon built a warehouse
You already know that Amazon is investing in Bakersfield. The new Amazon warehouse promises to bring new jobs and to increase average wages. With increased wages, and increased employment opportunities,
Bakersfield REALTORs anticipate increases in rental prices, because the pool of qualified renters is increasing, and the available rentals remain relatively similar. As competition for units rise, rental applications will compete for landlord attention by offering higher prices. On the other side, landlords are going to be requesting these kinds of offers by listing apartments high and seeing what kind of tenants submit applications.
With the rise in rent prices, the house values will increase too. When rent prices exceed mortgage values, many renters will decide to buy a home. This trend will continue until the monthly mortgage price pushes past the average rent price. This means that the average house price must increase in order for the market to reach a natural balance.
What you didn’t know
In addition to Amazon, Bitwise moves to Bakersfield. Bitwise seeks to turn Bakersfield into an innovation center like Silicon Valley.
First, they are bringing innovators together by offering a shared space with high speed internet and open design concepts. When creators unit in a shared space, innovation accelerates. Inventors share ideas, form teams, and build off each-others innovations. The result is new businesses, websites, and applications that generate revenue and attract outside investment. These shared spaces are available for as little as $10 per day or $39 per month. (See 23ABC News.)
Second, they are offering technology classes to local businesses and privately interested, ambitious individuals. For prices as low as $250, you can learn to code. This low cost to entry will allow thousands of individuals to join the tech revolution by removing the biggest barrier to entry: lack-of-knowledge. (See 23ABC News.)
As Bitwise moves forward and achieves its mission, we can expect to see the impact on Bakersfield Real Estate. Just like other innovative cities, Bakersfield will see rising rent and mortgage prices.
Bakersfield is an ideal place to invest.
The rental market has been strong in Bakersfield for decades. With the combined changes that we discuss above, Bakersfield’s rental market becomes even stronger, which makes Bakersfield a safe place to invest in Realty.
Some investors are borrowing against their homes to purchase low-cost rental units available in Bakersfield. A second mortgage on your Los Angeles home can provide the money you need to purchase a rental in Bakersfield.
The strong rental market assures you that your investment will be cash-flow positive.
The strong economic standing assures you that the market value of your investment property will steadily rise and alarming rates.
Bakersfield remains an ideal place to invest in realty, and it is only getting better!
If you want more information
Do you want more information? If you would like to invest in Bakersfield, but you want just a little more information, call us. We are here to answer your Real Estate questions, and we can help you find the right investment property for you.