Vacation homes an easy investment in Palm Springs

By Jagdeesh Mann
Mata Press Service

The population of Palm Springs swells to over 100,000 during the summer months.
Yet every day by early evening a quiet hum settles across the entire valley.
By dusk only the chirping of crickets slice through the perfect stillness of the desert night.
The scene is almost from the Arabian Nights - look up from your patio chair, past the canopy of date palms, and you may see one of the thousands of stars in the sky winking at your good fortune.
Welcome to the desert oasis of Palm Springs, California.
For over 80 years, Californians – who know a thing or two about relaxation – have chosen to buy vacation properties in Palm Springs when in need of a getaway from the stresses and strains of daily life.
When Hollywood stars discovered the refuge in the late 1930’s, Palm Springs became fast-tracked to its current day status as a premier resort destination.
Today the region which is approximately 100 miles from the Mexico - California border, and about 2 hours from Los Angeles, attracts tens of thousands of families, convention-goers and honeymooners each year - including numerous celebrities who keep seasonal residences in the area.
Despite this growth, the Coachella Valley’s cluster of 8 cities - of which Palm Springs is the largest - has still retained its time immemorial gentle pace of living. With temperatures rising up to 45 degrees Celsius in summers, days roll in natural rhythm with the intensity of daylight rather than the tyranny of clocks.
Civic leaders have taken steps to preserve the region’s close relationship with its desert eco-system. Street lights are kept to a minimum to conserve the carbon footprint but also to ensure the stars are not crowded out by the glow of city lights.
These touches are welcome by those drawn to the Palm Springs lifestyle. Most part-time residents who return at least once yearly end up investing in time-share/ vacation properties that yield rental returns throughout the year. These properties serve as second homes while on vacation.
Property management companies attract short-term renters and handle any day-to-day concerns with your home while you are absent. There are no headaches for owners should the gutters need cleaning.
Vacation Palm Springs is one the leading companies in the Palm Springs region for vacation home management and marketing. One of the company’s founders, Rick Hutchenson, is also the pro-tem mayor of Palm Springs.
“We started investing here over ten years ago and slowly have built to where today we have over 200 properties in this region,” explained Hutchenson. “Currently there are excellent opportunities in the market for families looking to invest in vacation properties.”
As Hutchenson explained, the math for vacation homes gets better and better the larger the home. Though there are many factors to consider, four bedroom homes, for example, can generate up to $50,000 in gross rental income. Seven to eight bedroom homes can generate as much as $150,000 each year in gross rental income.
“My recommendation, particularly for family investors, is to choose a house over a condo,” said Hutchenson. “Sometimes the difference of one or two bedrooms can make the home more attractive for vacation stays, and enhance rental income. Space is also important if you have kids.”
An online search on www.palmspringshomebuyer.com reveals the affordability of various properties. Five bedroom homes with pools, full kitchens and all the other amenities of family living start for sale at $600,000 – the same rate as a standard family home in Surrey, or Maple Ridge. Even with two basement suites, i.e. ‘mortgage helpers’, that same Lower Mainland residence will generate at maximum $24,000 in rental income – half the max yield of the same vacation property in Palm Springs.
Not only can the rental income from your Palm Springs vacation property offset the cost of the mortgage, it can even generate surplus value while providing your family a regular residence during holidays.
As the economy rebounds in the US, the value of these properties will also rise in the coming years, putting current buyers in prime position to see their property values appreciate.
Mark Graves, the Executive Director of Communications for the Palm Springs Desert Communities Convention and Visitors Association, has witnessed the rising number of Canadians coming to Palm Springs and anticipates these numbers will continue to swell with WestJet opening new and more routes from Vancouver, Toronto, and Calgary.
“Palm Springs is home to 115 golf courses,” Graves said. “There is every form of recreational activity available to residents. The Coachella Valley is one of the most unique eco-systems in California, a valley surrounded on three sides by mountains, and a short drive away from Joshua Tree National Park. For Canadians visitors there is so much to explore and experience.”
With over 350 days of healing desert sun per year, its understandable why the area is known as a sanctuary for BC and Alberta ‘snowbirds’ retreating from the harshness of Canadian winters.
Golf courses aside – the PGA’s annual Bob Hope Classic is held here – there are facilities available for every type of recreational activity. One popular pastime for locals is spending the day at one of the region’s many spas where residents are pampered like Hollywood celebs.
The region’s hot springs are renowned for their rejuenvating and replenishing qualities. The region’s mineral rich water - considered the purest in the continental United States - takes decades filtering through the mineral rich soil until it eventually finds its way into the Valley’s underground aquifers.
“An investment in Palm Springs is more than just about real estate,” finished Rick Hutchenson. “People come here for the sunshine, and ultimately the healthy stress-free lifestyle.”
In that Epicurean measure of happiness, profit has never been the only deciding factor for the thousands of people who have invested in Palm Springs.
Just ask anyone who has ever fallen asleep poolside while counting the stars.

For more information on vacation properties in Palm Springs, go to www.vacationpalmsprings.com.

About the Coachella Valley

Palm Springs is one of 8 cities clustered in the Coachella Valley which is situated in the the Sonoran Desert in Southern California.
The Valley, which is below sea level, is surrounded on by several mountain ranges.
Mount San Gorgonio (3,300 metres) and the Little San Bernardino Mountains is to the north. To the west is Mount San Jacinto (3,200 metres) and the San Jacinto mountains; to the south, the Santa Rosa Mountains; and to the east in the distance, the Chocolate Mountains.
In the winter the mountains are covered with snow while in the valley below temperatures average 25 degrees Celsius.

Palm Springs

Originally called Agua Caliente (Spanish for “warm water”), the site of present-day Palm Springs was selected in 1863 as a stop on the stagecoach line between New Mexico Territory and Los Angeles.
Palm Springs is the Valley’s oldest and probably best-known city. Every Thursday night, year-round, lower Palm Canyon Drive is blocked off for the Street Fair. The fair features music, a Farmer’s Market, arts, crafts and more.

Cathedral City

The city has some nice residential areas and housing is generally less expensive than in Palm Springs.
Prices ranged from $220,000 to $1.5 million.

Rancho Mirage

The next city going east, Rancho Mirage is much less commercial and mostly comprised of high-end residential properties, country clubs and gated communities. Former President Gerald Ford lives in Rancho Mirage, as did Frank Sinatra. Houses here range from $329,000 to $6.75 million.

Palm Desert

Palm Desert is the fastest-growing Valley community, experiencing a boom of residential and commercial construction. Aside from residential housing and condo complexes, there are many large gated communities, golf courses and resorts. Home prices range from moderate to very expensive ($249,000 - $7.5 million). The city offers several large shopping centers with major department stores and national retailers.

Indian Wells

Indian Wells is considered to be the most upscale community in the Valley by many people. It’s quiet, with numerous exclusive neighborhoods. For example, the homes in one community range from $5 million to $15 million. The city also has several large resorts, such as the Hyatt Grand Champions, and is home to the Indian Wells Tennis Garden, which hosts the annual Tennis Masters Series by Newsweek each March.

La Quinta

Next is La Quinta, the newest and smallest city in the valley. In addition to residential housing, there are many gated communities, with housing prices ranging from $200,000 to $6.9 million.

Indio

At the eastern end of the valley, is Indio.
Called the “City of Festivals,” Indio hosts the annual Date and Tamale Festivals. Home prices range from $175,000 to $2.4 million.

Desert Hot Springs

Desert Hot Springs is situated high above the other cities, in the San Bernardino Mountains and bordering Joshua Tree National Park.
The city is is built over one of the world’s finest, natural hot-mineral-water aquifers. Crystal clear and mineral rich water percolates to the surface. There are many ultra-chic and ultra-exclusive celebrity retreats in the area.

Palm Springs Property Listings Sample

1022 E Granvia Valmonte, Palm Springs, CA 92262
Listing #21410415
$679,000
Price/SqFt: 188.09
Beds: 5
Baths: 4
Sq Ft: 3610
Lot Sz: 13504sqft
Yr: 1951

Not a short sale. $188 per sq ft well below the average for this upscale location! Cash generating rental. Seller states property rents for up to $500 a night in season. Sprawling mid century ranch style home with many unique features. Well located to downtown village area located in the Ruth Hardy Park/ Movie Colony area Private pool area and spacious side yard areas.

471 Tamarisk Rd, Palm Springs, CA 92262
Listing #41414214
$739,000 (LP)
Price/SqFt: 249.66
Beds: 5
Baths: 4
Sq Ft: 2960
Lot Sz: 14810sqft
Area: 332
Yr: 1935

Check out this great value in the Movie Colony, one of Palm Springs’ finest neighborhoods. Main House plus Detached Guest House, South-facing backyard with private pool and spa, and good mountain views is located within blocks of downtown Palm Springs! Main House with 4 bedrooms and 3 bathrooms features hardwood and paver flooring, multiple sets of French doors to the south-facing pool and spa.

230 N Via Las Palmas, Palm Springs, CA 92262
Listing #41414586
$777,000 (LP)
Price/SqFt: 194.25
Beds: 5
Baths: 6
Sq Ft: 4000
Lot Sz: 15682sqft
Area: 332
Yr: 1954

Now is your opportunity to own a 4,000 square foot, 5 bed, 5.5 bath home in Palm Spring’s most prestigious neighborhood of Old Las Palmas for only $777,000! This gated & private mini-estate boasts stunning mountain views situated on a 15,682 square foot lot. A large open floor plan features an oversized Living Room, Dining Room, fireplace, a private home office & 12 sets of French doors that open to the private back yard.

466 S Patencio Rd, Palm Springs, CA 92262
Listing #41411711
$1,095,000 (LP)
Price/SqFt: 342.19
Beds: 5
Baths: 4
Sq Ft: 3200
Lot Sz: 10019sqft
Area: 332
Yr: 1952

Villa in the Moorish Style. A chef’s kitchen has custom tile, stainless steel appliances. This unique property boasts custom Moorish tile, arches, authentic Moroccan fixtures. Stunning views are enhanced by 1250 square feet of balconies for outdoor living, one with a tiled fountain and dining banquette that seats twelve. The studio suite has a separate entrance, patio, bath, fireplace, and 12’ ceiling. This unique architectural gem sits in a gated compound.

For more listings please go to www.palmspringshomebuyer.com