Fremont, CA · Member since 2011 · 10 posts · 4 votes
I have read some articles online as well as TV show recently indicating that it's good time to invest land in Lancaster and Palmdale, CA. The main reasons are the population of these two cities are growing fast, there will be high speed rail station built up in Palmdale which will help local development, and finally these two cities are within 60 miles radius of LA. Giving this information, I'm willing to invest land in these two cities; however, I would like to get more feedback/input from local people/agent regarding the future of these two cities. I would appreciate any information for this topic from everyone. Thanks!
I personally would recommend buying cheap houses instead of land, unless you have a plan for it. A huge benefit of the AV is the ability of being able to cash flow, while prices are seen as "high". I always look at, how will this purchase make me money? Unfortunately, I'm not smart enough (yet) to figure out how to make investing in land more profitable than housing....especially seeing that we are in the midst of a housing shortage that will continue to get worse. Investing in the AV is great, but make sure that property will cash flow well.
Here is a link to a website that specializes in data-driven city comparisons: http://best-cities.findthebest.com/compare/157-203/Lancaster-vs-Palmdale. It may give you a little bit more information.
Here is another link to a site produced by Antelope Valley Education & Research Foundation. They provide some really comprehensive economic data. http://www.aveconomy.org/index.cfm?page=Studies
In my opinion, neither Palmdale or Lancaster are worth buying land in.
In the late 80's a lot of hype was surrounding an airport that was going to be built - I believe - in Palmdale. A few years ago the same conversation was revived, but nothing ever happened.
I find the future for both areas to be bleak. Look more inland towards Los Angeles. Going out that far does not make sense, unless you have specific ideas. If that is the case, go ahead and elaborate.
Freddy, Adam is absolutely right. My mother starting selling land in that area in the 70's. They spoke of the airport that would be built and a lake but over the years during great times there was a little development but during the recessions it bottoms out pretty low. They are considered high crime areas and there is so much land out there that it's not worth much more than it was in the 70's.
That being said I think there might be at least a thousand other places you should invest your money. Maybe 2 or 3 thousand. I don't know what area you're from Freddy, but I am sure it looks alot better on paper. Do your homework.
I do tend to agree with Adam M and Luis Castillo. I frequently visit forums where people looking to move into an area post questions about the safety. The majority of the comments regarding Lancaster and Palmdale have been negative. Of course the same is said about Detroit, MI but people still live there and investment properties are being bought. So, you just have to do your research, narrow down your neighborhoods and weigh your investment criteria.
Tony Alvarez has made quite a fortune investing out in that area. Perhaps you can gleam some useful info off his web sites (I believe he has several).
As far as the high-speed rail, I wouldn't invest based on that. That project has about as good a chance of seeing the light of day as the elevator to the moon.
Money can be made in any city and in any business. I am sure people have made fortunes cleaning out cesspools. I just don't know if that's how you want to make your money, knowing that you can make it selling perfume.
From my experience, there is a buyer for every type of property and asset. Nevertheless, you need to make sure you're making your money on the buy. A strategy I like to use to test an area's pricing demand that I'm not familiar with is to lock up the property via an option agreement.
Of course, do your research and study the recent comps, but don't necessarily prejudge an area because some people think it's junk property.
Just help clear it all up. I live in the AV. and have for some time. Yes when the bubble popped we go hit hard. The crime rate is really low tho compared to LA. Also we do have a airport it's called the Palmdale regional. About the high speed train I do see some vitality in it but its some time away. I am also just starting out in this biz looking to meet other investors of this area.
Land speculation -anywhere - is a sub-niche of investing requiring its own skill sets. So, it's important to know what you intend to do with land that you buy (or control) before pulling the trigger.
If your intention is to build, as spec builders do, I'd get a mentor or partner with that experience. If its just bare land, you'd better learn about entitlements and zoning laws as well as options and seller financing. If you're looking at finished lots only, you'll need to have a strategy that provides for holding costs until resale and expect to carry much of your investment and profit in the form of seller financing yourself.
Btw, I just got off the phone with Tony Alvarez moments before this post. He is the 800 pound gorilla in the AV and attracts the right kind of people who can better answer your specific Q's . He and a partner host a quarterly R E investment club at the Holiday Inn.
While this reply is to an old post, Timing is Everything...
The future is being unleashed in the Antelope Valley, and the City of Palmdale is leading the way in many of the exciting and impactful changes on the horizon.
A growing economy. Educational opportunities. Dynamic housing. Cutting edge medical care. Excellent shopping and dining. Top notch amenities. A safe community.
These are some of the reasons why Palmdale is the place to be now as well as the future. Explore Palmdale, a city ready to exceed all expectations. You might want to consider a Land Banking company.
I personally would recommend buying cheap houses instead of land, unless you have a plan for it. A huge benefit of the AV is the ability of being able to cash flow, while prices are seen as "high". I always look at, how will this purchase make me money? Unfortunately, I'm not smart enough (yet) to figure out how to make investing in land more profitable than housing....especially seeing that we are in the midst of a housing shortage that will continue to get worse. Investing in the AV is great, but make sure that property will cash flow well.
I have just bought a 1.37 acre land right below palmdale lake. At this point, not really looking at this as a investment, but rather a personal use for land developement into a small personal farm. This land might not be able to built, not sure yet. There is a water pipe ditch that connection lake palmdale to anther water sournce, to make sure the lake palmdale don't dry up. If I couldn't build, I will try to see if I can put mobile home on it. Making the land usable it going to be a challenge. I am just starting to learn a lot of turning the raw land into usable land. This would be a great opportunity for me to learn.
I bought about 10 acres in east lancaster (near edwards air force base) for $9k for hobby farming and fun. I work as a software engineer and getting to work with my hands is a nice difference. My intention wasn’t to purchase the land as any kind of financial investment, but now the land around me has gone up significantly in price in just the last few months (same cost of land is now $56k). Maybe it’s because it’s still technically Los Angeles County, but it’s way out in the boonies.
I will say that it’s fairly safe once you go 30 minutes east of the city. But I’m not sure what the future will hold. It’s a great place to do some fun stuff and not be bothered, though. My purpose is similar to @James Lin.
I have read some articles online as well as TV show recently indicating that it's good time to invest land in Lancaster and Palmdale, CA. The main reasons are the population of these two cities are growing fast, there will be high speed rail station built up in Palmdale which will help local development, and finally these two cities are within 60 miles radius of LA.