LivingMalibu.com » Malibu property Prices http://www.livingmalibu.com Malibu Real Estate-Malibu Homes For Sale Tue, 18 Jul 2017 20:51:46 +0000 en hourly 1 http://wordpress.org/?v=3.3.2 Home Buying Calculus Different For Investors/Homeowners http://www.livingmalibu.com/home-buying-calculus-different-for-investorshomeowners/ http://www.livingmalibu.com/home-buying-calculus-different-for-investorshomeowners/#comments Thu, 19 Sep 2013 22:20:04 +0000 ritasimpson http://www.livingmalibu.com/?p=2861

You buy a property in Malibu because you want to live here or have your family grow up here or you just MUST have a Malibu home…

The house-owning math for investors is 180 degrees from the rest of us who are buying a house to live in. Today’s article in the WSJ, gives a great ...]]>

You buy a property in Malibu because you want to live here or have your family grow up here or you just MUST have a Malibu home…

The house-owning math for investors is 180 degrees from the rest of us who are buying a house to live in. Today’s article in the WSJ, gives a great analysis.

Many so-called “investors” come to Malibu wanting to invest in property here, but when they put out the calculator it usually does not pencil out. This is because there is a difference between buying to enjoy or raise a family or as a  an achievement gift to oneself and  family in celebration of all our efforts. Both are valid and desirable but one must know the difference.

Sometimes it’s hard to remember that your home is NOT an investment property. Investment properties have cash flow and pay for themselves. Homes don’t; Homeowners pay for them.

Corporate property investors usually buy with cash. Their acquisition and maintenance expenses are paid by the rental income, and they are taxed only on the difference between their revenue and expenses. There are other Real Estate Tax , including depreciation that enhance cash flow but are unavailable to individuals. Losses can be carried over year after year and used to offset profits elsewhere. And Real Estate Investors have a leg up even on stock investors because hey can avoid capita gains taxes completely if they buy and sell “in Kind” properties. Last but not least, property investors can buy and sell without incurring the cost of moving because they don’t live in their investments.

By contrast Homeowners usually borrow money to buy their homes so even with very low-interest rates the cost of the home by the end of the 30 year mortgage would have climbed to 70% or more over the purchase price! in addition the mortgage tax deduction is only significantly higher than the standard deduction available to all taxpayers in the very high-end areas.

So if you want to live in Malibu and enjoy the Malibu lifestyle, put aside the investment calculus, and make peace with the fact that this is a gift for your soul and your families well being. This is why to come to Malibu

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Malibu Real Estate IN High Demand http://www.livingmalibu.com/malibu-real-estate-in-high-demand/ http://www.livingmalibu.com/malibu-real-estate-in-high-demand/#comments Sun, 24 Mar 2013 23:12:11 +0000 ritasimpson http://www.livingmalibu.com/?p=2722

The spring homebuying season has kicked off  in Malibu with tight  housing inventories and Prices going UP.

Malibu  famous for it’s celebrity residents and gorgeous coastline is experiencing a run for the homes on the market with 90% increase  in properties under contract on the landside and a jump of 348% on the median price of ...]]>

The spring homebuying season has kicked off  in Malibu with tight  housing inventories and Prices going UP.

Malibu  famous for it’s celebrity residents and gorgeous coastline is experiencing a run for the homes on the market with 90% increase  in properties under contract on the landside and a jump of 348% on the median price of homes sold at the beach.

While there is a difference in the dynamics of the land versus beach market in Malibu, and in the fact that one Mega sale can skew the stats in the area, we still can measure and compare the activity in the Market and take away useful conclusions:

For Properties at the beach in Malibu we had  asking price hike of  42% on average, and a realized 348% increase in the Median Price Sold, in February.  It seems to have followed the highest number of sales closed in December in the past few years.  The  phenomenal activity in December represented a 900%  increase over 2011! and seems to have pulled the momentum forward for the year.

As to the land side properties, we are experiencing a tight inventory with supplies contracting 37% and asking prices going up by 21%.

It looks like the Super Rich are parking lots of money in their Beach Houses in Malibu, and with properties under contract increasing by 90% over last February, it looks like savvy homebuyers are scrambling for  the best opportunities in Malibu properties before a new bubble sets in.

CMM_Report_SupplyAndDemand_data CMM_Report_MedianSoldPrice_chart Malibu Beach_SoldForSaleMedianPrice_chart Malibu Land Side_SoldForSaleMedianPrice_chart Malibu land Side_MedianSoldPrice_chart CMM_Report_MedianSoldPrice_chart CMM_Report_SoldForSaleMedianPrice_chart CMM_Report_UnitsUnderContract_chart CMM_Report_MedianSoldPrice_chart

 

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