Is Santa Clarita (Valencia/Stevenson Ranch/Newhall/Canyon County) good for investment? (Los Angeles: rent)

[chopinluver]

I'm considering an investment property in Santa Clarita area. My budget is under 600K, considering an SFR or condo/townhouse with 3br/2baths. My question is, is there demand for residential rent in that area? Looks like housing price is relatively cheaper compared to other parts of greater Los Angeles county while public school rating is pretty decent. Usually there is correlation between the housing price and public school rating, but looks like Santa Clarita is an exception. Is it because of commuting time to LA?

[Grune D]

I have an investment property in Valencia, is a condo I briefly lived in. It’s 3-2.5. Rents for $3,000 to a great family. I don’t make money nor do I lose. It covers everything including HOA. The are has top schools.

[chopinluver]

Originally Posted by Grune D

I have an investment property in Valencia, is a condo I briefly lived in. It’s 3-2.5. Rents for $3,000 to a great family. I don’t make money nor do I lose. It covers everything including HOA. The are has top schools.

When did you buy the property? and how big is the condo? Is it pretty easy to find a tenant in the area?

[ccm123]

I have a cousin who owns a home in Valencia. It’s a very nice neighborhood. She has mentioned that if the property was closer to LA proper, the value would be higher. The commute into LA is one reason why these properties are not priced higher. I’ve heard that I-5 can’t get backed up during commute hours.

Originally Posted by chopinluver

I'm considering an investment property in Santa Clarita area. My budget is under 600K, considering an SFR or condo/townhouse with 3br/2baths. My question is, is there demand for residential rent in that area? Looks like housing price is relatively cheaper compared to other parts of greater Los Angeles county while public school rating is pretty decent. Usually there is correlation between the housing price and public school rating, but looks like Santa Clarita is an exception. Is it because of commuting time to LA?

[ohio_peasant]

Coming from the Midwest, I find Santa Clarita to be the portion of the greater LA region that... most resembles the Midwest; both in good and bad senses.

One consequence is lot of largish, recently-built single family houses, presumably occupied by owners (as opposed to tenants). I would surmise that the sort of person inclined towards renting would prefer to be in the "mainstream" portion of the region. Santa Clarita appeals - again I'd surmise - to the sort of suburbanite who wishes to exchange the bustle, flair and grit of LA, for more of a traditional homeownership experience, at a relatively lower price.

[waltchan]

Originally Posted by chopinluver

I'm considering an investment property in Santa Clarita area. My budget is under 600K, considering an SFR or condo/townhouse with 3br/2baths. My question is, is there demand for residential rent in that area? Looks like housing price is relatively cheaper compared to other parts of greater Los Angeles county while public school rating is pretty decent. Usually there is correlation between the housing price and public school rating, but looks like Santa Clarita is an exception. Is it because of commuting time to LA?

The newer Newhall Ranch development with many new upcoming homes will compete on home prices against older neighborhoods, like Stevenson Ranch.

[apple92680]

Originally Posted by ohio_peasant

Coming from the Midwest, I find Santa Clarita to be the portion of the greater LA region that... most resembles the Midwest; both in good and bad senses.

I'm not a fan of what I perceive to be the hyper materialism of that particular area. It's too much! I've known a few people who lived there and it seems like all they do is get themselves into more and more debt. Santa Clarita and Temecula were ranked as the two Southern California cities where residents carried the largest amount of personal debt. Very "keep up with the Jones" vibe going on there.

Originally Posted by ohio_peasant

One consequence is lot of largish, recently-built single family houses, presumably occupied by owners (as opposed to tenants). I would surmise that the sort of person inclined towards renting would prefer to be in the "mainstream" portion of the region. Santa Clarita appeals - again I'd surmise - to the sort of suburbanite who wishes to exchange the bustle, flair and grit of LA, for more of a traditional homeownership experience, at a relatively lower price.

In that sense, Santa Clarita is more like the rest of Southern California, which is to say homeowners. The further outside of Los Angeles City Limits you go, the higher the proportion of homeowners vs. renters. The majority of Orange County and Ventura County are homeowners. The majority of people here in my neighborhood in the Antelope Valley are homeowners. The same holds true as you go out through the San Gabriel Valley and into the Inland Empire. The only exception to this rule is Long Beach, which for all intents and purposes is its own miniature version of Los Angeles. Even in Long Beach though, there are still a lot of homeowners.

Part of the appeal of suburbia is the affordability of the homes, the slower pace, the quiet in evenings, the wider roads, amenities that are accessible without parking garages and meters, being able to park your car in your own garage, a bit of a backyard for your furballs or kids to run around on, manicured plazas and shopping centers. A 20-something would certainly find all of this "boring".