Los Angeles Comes in at #5 Nationally for ROI on Long term Property Investments

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LA ROI on long term property Investments

Homeowners in Los Angeles who held onto their homes for a long time, but finally sold last year saw large returns on their investments. In fact, the average home seller in Los Angeles made roughly $200,000 per sale in 2016.

However, not everyone saw a return this large. According to a study released this month by Zillow, owners who saw the highest returns on their investments owned the property for a median span of nine years and eight months.

That makes for a gain of 53.7%, which was better than 28 of the other 33 metropolitan areas included in the study. The best part is – the gains were made during a time in which the entire nation was seeing rising home prices. Experts say the West Coast did considerably better thanks to their higher paying jobs (most of which are in the tech industry) and patience to hold onto their properties longer.

Zillow found that Oakland was the area with the best return on investment. In this area, most homeowners lived in their homes for about 7 years and 3 months, and the average home sale price was $590,000 last year. For these homeowners, that is an increase of 78% of what they paid for the homes.

Here is a look at the top 10 areas Nationally:

  1. Oakland, California – 78% Return
  2. Portland, Oregon – 64.7% Return
  3. San Jose, California – 56.5% Return
  4. Denver, Colorado – 56% Return
  5. Los Angeles, California – 53.7% Return
  6. Sacramento, California – 53.6% Return
  7. Seattle, Washington – 53.1% Return
  8. Philadelphia, Pennsylvania – 51.7% Return
  9. New Orleans, Louisiana – 51.5% Return
  10. Boston, Massachusetts – 49.6% Return
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Bob Allen

Bob Allen

Bob Allen is The Daily Telescope''s senior editor. He is also a nationally syndicated newspaper columnist and a bestselling author. He lives in Los Angeles and covers the intersection of money, politics and finance. He appears periodically on national television shows and has been published in (among others) The National Post, Politico, The Atlantic, Harper’s, Wired.com, Vice and Salon.com. He also has served as a journalist and consultant on documentaries for NPR and ShowTime. In 2014, he was the winner of the Society of American Business Editors and Writers' investigative journalism award, and the winner of the Izzy Award for Journalism from Ithaca College's Park Center for Independent Media. He was also a finalist for UCLA's Gerald R. Loeb Award and Syracuse University's Mirror Award. Before becoming a journalist in 2006, Sirota worked in Washington for, among others, U.S. Rep. Bernie Sanders, the U.S. House Appropriations Committee Minority Staff and the Center for American Progress.
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