For many domestic homebuyers who are unfamiliar with the United States, it is essential to have an experienced real estate agent who can provide targeted location recommendations based on their specific purchasing objectives. This is because the location of a real estate investment is of paramount importance. Below, we use Los Angeles, USA, as an example to guide you on how to select a property in the United States.
Due to its pleasant climate, comfortable environment, excellent school districts, abundant employment opportunities, and authentic Chinese cuisine, many consider Los Angeles to have long-term investment potential, making it the top choice for real estate investment in the United States. Given the vast size of Los Angeles, how should one choose a location for purchasing a home?
1. Purpose of Purchase
First, one must consider specific individual or family needs. If the goal is for children's education, then one must purchase a home near the designated schools. If the client is investing rather than buying for educational purposes, then one must evaluate whether the property meets investment criteria. There are three standards: First, does it have room for appreciation? Second, does it have strong liquidity? Third, what is the rental return? Among these three standards, rental return is not the most critical factor; the most important factor is appreciation potential. To determine if there is appreciation potential, the classic mantra remains: Location! Location! Location! When a location is very safe and has a good school district, the appreciation potential is certainly promising.
2. School District Housing
When discussing school districts, they are divided into Chinese-majority school districts and Caucasian-majority school districts. The primary indicator for a school district is the API score. With a maximum score of 1000, scores below 700 are not considered a school district, while those above 800 are. Scores between 900 and 1000 are considered top-tier (ten-point) school districts.
Among the top-tier school districts, cities in the Chinese-majority area include San Marino. San Marino has a population of over 50,000 and is primarily a region of single-family villas. The properties are generally older, typically occupy 10,000 to 20,000 square feet of land, have a low floor-area ratio, and are mostly deep, secluded estates where one often sees no one for half a day in the community. However, the school district is first-class. The average home price here is between three million and four million dollars.
Next is the well-known Arcadia, a Chinese-majority affluent area with a beautiful city and excellent school districts. It is located in the densely populated Chinese area of the San Gabriel Valley, about 20 kilometers from downtown Los Angeles. With its mild and pleasant climate, beautiful city scenery, and high-quality school districts, it has attracted a large number of wealthy Chinese families to settle here, driving up local property prices. It is one of the most suitable cities for investment and homeownership in the Los Angeles area. The Highland Oaks and Santa Anita neighborhoods in the north are famous affluent Chinese areas. Throughout the city, towering ancient trees, ecological slopes, and natural parks are everywhere. Chinese dining, Chinese churches, and Chinese businesses are highly concentrated, including the 99 Ranch Market, which symbolizes Chinese life.
Of course, what is most favored by Chinese-Americans is the high-quality school district. The Arcadia Unified School District is the top school district in Los Angeles, with most schools receiving perfect scores. Arcadia was named the number one city for "Best Place to Raise Kids" in California by BusinessWeek for two consecutive years in 2015 and 2016. Arcadia High School has seen a slight dip in its recent ratings, mainly due to the significant increase in the proportion of Chinese students, many of whom immigrated during high school and are slightly disadvantaged in language, which has a minor impact on the overall score. However, the school district as a whole remains excellent. The average property price here is between 1.5 and 2 million dollars. Examples include Peacock Garden, Oak Garden, and Highland. In this destination that leads fashion and realizes dreams, there are often surprises of encountering celebrities. As everyone knows, Los Angeles is the global capital of film and entertainment, and celebrities are occasionally spotted. Elites such as Chen Zhenglei, the successor of Chen-style Tai Chi who inherits Chinese culture, and singer Hao Yun, known for his urban folk style, have gathered here. It is a place of hidden talent. Therefore, if a client's budget is between 1.5 and 8 million dollars in a good Chinese school district, there is a relatively large selection space, and we generally recommend this school district.
I generally do not recommend other traditional Chinese areas. The reason is mainly that the safety level is not high, and secondly, the school districts are not very good. These places are only convenient in terms of language, where Chinese signs and fellow countrymen can be seen everywhere on the street, and most residents are early immigrants from Guangdong and Taiwan, China.
In addition to good schools, another important indicator of a good area is the demographic structure of "two highs and one low," which means: residents have high education levels, high incomes, and low crime rates. The average annual household income in the United States is 56,000 USD, and in California, it is 61,000 USD, while the aforementioned Arcadia is 170,000 USD and San Marino is 230,000 USD. Local fiscal revenue is used for local construction and security, which is why these places are very safe.