Famous around the world for its beach views, Malibu is just north of Los Angeles, with a 27-mile beach facing south on the California coast. Malibu real estate is highly coveted, whether it’s a beachside mega-mansion or a condominium further inland. Beachside properties are valuable assets, and Malibu is one of the most sought-after beaches in the world, ensuring that its properties will continue to increase in value.
Whether you’re looking to buy an existing home or property on which to build, you really can’t go wrong with Malibu. You still want to get the most bang for your buck, though, and that’s why it’s important to know when to buy.
Tips for buying SoCal Land
Buy when the market is right
Markets fluctuate even in places where real estate is in extremely high demand. There are times when there are more buyers than sellers and vice versa. Right now, Malibu is seeing a relatively balanced housing market that even leans slightly towards the buyer. That means Malibu real estate is currently being sold for slightly below the asking price. You want to take advantage of this as soon as possible because, as stated previously, this is a very in-demand area, and the market could change at any time.
What’s incredible is that even though there is a relatively low demand for Malibu real estate right now, the values continue to rise. Although there have been dips and spikes in the home sold price, the trajectory remains clear and constant. The values seemingly continue to rise regardless of internal factors. That is what makes Malibu real estate, in particular, such a great investment. Though the market may change, the location never does. As the location is so great, Malibu homes continue to rise in value, ensuring that whenever you buy, you’ll be getting a great return on your investment.
Know the factors that determine property value
If you’re buying property in order to build Malibu real estate, there are certain things you should keep in mind
when looking for a property to buy that will eventually determine the value of the home. The obvious one is location, and as stated numerous times, there really is no bad location when you’re buying in Malibu. Properties will always be valuable for that fact alone, but how can you make sure it’s even more valuable? Take the neighborhood and quality of schools in the area into consideration. Maybe you don’t have kids, and you’re planning on building a vacation home for yourself. Why should you care about the schools? Because potential buyers might worry about them.
Buy when interest rates are low
Malibu, and southern California in general, may be expensive, but that doesn’t mean you should pay more than you have to. You want to buy at a time when you’ll be able to make lower mortgage payments and therefore save money. Constantly check on the going mortgage rates in California, and buy when they’re low. A 15-year fixed-rate mortgage tends to have lower rates in order to offset the higher payments. If you’re buying for the short term or to flip, this may be the option for you.
Consider insurance costs
Remember, this is still California. There are risks involved with buying anywhere, but you can still minimize risk and the high insurance costs that come with it. Although property right next to the beach may be the most valuable, it’s also the most susceptible to flooding and water damage. Be sure to keep this in mind as you’re choosing a location, as the insurance costs might make the property more of a hassle than it’s worth. Weigh the value of the home with the insurance costs. It may be better to buy near the beach, but not directly on the beach.
Rent out your property
Whether you’re planning to build or to buy an existing home, you might want to consider the rentals in the area. If buying Malibu real estate is solely a money-making proposition for you, then you might want to consider renting out your property. This way, as you make mortgage payments, you get that income back in terms of rent, and the house keeps increasing in value. Rent in Malibu for a seaside house could be as high as tens of thousands of dollars per month. If you’re not interested in being a true landlord, then you can still profit off of your Malibu real estate when you’re not using it, thanks to the increase in popularity of home-sharing apps like Airbnb. Malibu homes can rent for hundreds or thousands of dollars per night.
How to get started buying Malibu real estate
If you’re ready to get the process of buying land in Malibu started, no one knows the area as well as Malibu natives Bill Moss & Daniel Moss
. They’ll help you find the perfect location to buy or build. If it’s your dream to vacation in a house overlooking the beautiful Pacific Ocean with beaches stretching for miles, then this is the opportunity that you’ve been waiting for.