How to Make Money from the California Real Estate Gold Rush

Publié le 18 janvier 2013 par arnav567

What is so special about California? Why is the average price of a house there five times higher than nationwide? Why pay $ 100,000 a year, you can hardly afford to rent a decent apartment in the big cities?

It is true, Californians have a nice looking Pacific coastline. They also have a pleasant climate. But not just one. Oregon on the north Pacific coast, as well as beautiful. Oregon's climate is even better, and the taxes are lower. Still everyone wants to live in California.

Californians are a special bunch. They must know something that other people do not. Otherwise, how can they market themselves so successfully? Marketing, you say? It can not be that simple. Or is it?

As the Gold Rush in California (or was it vice versa)?

California became a state in 1848. Almost at the same time when the gold rush of California stories worldwide symbol for instant wealth. The things dreams are made of

How did this happen? As California began myth? If you were to discover gold, you would my own, or would you tell everyone in on your discovery?

Well, when we learned that the first Californians were not so stupid. They tried to extract gold hills around San Francisco on their own. Very soon discovered that gold mining is hard work. Big nuggets were few and far between. Miners had emergency tons of rock for a few spots of gold.

What was Californians' next step? Stories gold nuggets lying on the ground began to appear in all newspapers in the world., If these stories are true or not, no one cares. Tie stories sold newspapers and also started an avalanche of fortune seekers descended on California.

While the newcomers take on the hard work to extract gold from the country, Californians enjoyed his new economic prosperity. Sell tools and services for miners. Never mind that the miners had to pay a head of lettuce, some a hundred times what it is in New York. Real wealth has been built on the services for miners. Their profits built San Francisco.

How to Market houses built on an earthquake fault?

Fast forward 150 years. California is increasingly becoming the most successful in the European Union. The value of their economy is comparable with China, which has 25 times more people. How do they manage to do that?

Let's look at Real Estate California. The most expensive are houses that overlook the spectacular Pacific coast. These are places where small three bedroom bungalow could fetch millions of dollars.

Although the coast of California is also the most problematic reason for building a Real Estate anywhere in the world. Numerous seismic fault line runs parallel to the coast line of California. Simply put - the coast of California is slowly moving north, while the bottom of the Pacific Ocean moves South. This discrepancy makes the strongest earthquake.

How do they manage to sell all those millions dollar homes despite the risk? Earthquake tremors are relatively common, minor happen several times a year. Chances are that one of them may happen during the open house. How do you deal with it?

Their marketing tactics have not changed much since the days of the gold rush. Spread the wealth of stories about California, then stand back and collect money from novices who are eager to make a fortune. The effect of a self-fulfilling prophecy.

When they are gone gold nuggets, sell land

For example, the San Francisco Examiner published a story about an illegal Mexican worker who bought an old house in East Palo Alto in 2002, very cheap. He rented it to other Mexican workers, and soon was able to buy another cheap house in the same area.

Three years later, it is still illegal immigrant, but his two homes assessed at 300% and is now more than a million dollars.

Stories like that make us dream of moving to California. What do Californians? Let's look at another example.

In 2003, former Spanish lady from San Jose bought a lot in the Montclair area of Oakland for just $ 18,000. The price was cheap because it was a lot of sales tax and $ 18,000 was higher property tax arrears to the county.

Why would the previous owner leave it too? He discovered that it was impossible to build a house for him, so he stopped paying taxes. Spanish lady put on the market a year later, and it sold for $ 78,000 (yes, that's 433% profit in one year).

What buyers do? I would like to remind you that it was still possible to build on this lot. The buyer immediately gave a lot back to the market $ 230,000, or three times more than he paid. For many in Montclair is an attractive price.

The last time I saw her, it generated a lot of keen interest among prospective buyers who are eager to join the California real estate boom.

P.S. All numbers are accurate. I can give you the number of entries is APN, so you may find yourself in Alameda County Tax Assessor Office

Article Source:-http://darwinolsen.blogspot.in/p/business-profile-for-my-web.html