Spotlight on Palm SpringsBottom Highlights, Real Estate Thursday, October 27th, 2016
Palm Springs has long been an attractive getaway spot for Southern California coastal urbanites. Escape to the desert for some peace and quiet has long been a theme. In the years this cachet was at its ultimate – the Don Draper ’50s and ’60s, folks came from far and wide. The former glamour now looks a bit older and stodgier, and newer developments in neighboring towns Palm Desert and Rancho Mirage have stolen some of the appeal and many of the visitors.
So, enter the developers. After a long sleep, Palm Springs has reawakened. Underway is a huge $400 million renovation of downtown that includes new buildings, paseos, public spaces, parks, underground parking, and most notably, a spectacular new hotel, the first to be built in the town for decades. City managers and dwellers are hoping the new convention-ready Klimpton with its rooftop pool and lofty desert views will lure back visitors.
Not everyone in town is happy about the new development and the incentives the city has used to encourage them, like the rebate of occupancy taxes the City bestowed upon the Klimpton. Residents would all like to foster economic growth without spoiling the small town flavor they enjoy.
For those coastal elites seeking their own getaway, Palm Springs is an attractive venue for many reasons. It’s close, easy to get to, and yes, still affordable. So the question is: Shall I invest in Palm Springs now, buy a condo or single family vacation home while redevelopment is relatively new?
There’s good reason to do so. Firstly, prices are affordable. A search of available condos in Palm Springs showed one-bedroom, one-bath listings under $150,000, and single families under $300,000. A condo at $130,000, for instance, with $30,000 down and a $100,000 loan would run under $500 for the loan + the HOA dues. With rentals running $600 to $800 per week, this means you could rent the unit for one week a month and pretty much cover your costs.
These days Internet services like AirBnB and VRBO make it quite simple to manage your investment. Of course, they are competitive so purchasing a condo with good amenities and then furnishing it to the nines, is essential. You’ll have to equip that unit with everything your weekend visitor will want and need, so it might take a while to recoup those expenses. But over the long term, an investment in a vacation rental in Palm Springs can bring a healthy return.
And then, of course, is your enjoyment of the town and ability to escape the big city woes without packing a bag. If Palm Springs recaptures the snazzy upscale vibe it once enjoyed, it’s likely your investment value will grow. Why not take yourself away for a weekend in the desert and rediscover Palm Springs. Do a little trolling and shopping and you may come home with some new digs and a great little investment.
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