I am a reader of the LA Times blog, which recently noted: ….. “But at least in Southern California, investors still account for less than a fifth of home purchases, though their share is growing. Last month, MDA DataQuick estimates 19% of homes purchased in six Southern California counties were bought by investors. Their estimate is based mainly on purchases in which property tax bills are sent to a different address.”




Due to lower prices and interest rates, many of my clients are purchasing real estate for their children.  The (above mentioned) 19% figure may be somewhat misleading.  Many of these properties are not being purchased by what you might presume is an investor, the homes are not "flips" or rentals. Sometimes due to stricter credit guidelines, their children can’t qualify for the loan.  The parents qualify, the child moves in.  The property is considered an investment property because although the loan is in the parents name the parents are not occupying the home (investment property = non-owner occupied).  Tax bills are often sent to the parents (as their name is on the loan).