Purchasing real estate is the best investment you can make because owning your own property has tremendous benefits – especially a Laguna Beach home! Your rate of return when purchasing a house is higher than almost any other investment you can make. Homes traditionally appreciate about five percent a year nationwide and what we’ve experienced here along the Laguna Coast over the past few years was unprecedented – where appreciation rates have been as high as 25%!
Demand for housing in Orange County is staying strong – which has created a state of permanently higher prices. The median home price in December 2016 was $630,000 – the highest since the Recession and the highest median price for any month in over eight years – up 8.2% from December 2014. Regional home sales also increased around 9.8 percent to 20,890 transactions – the most for any December since 2009 – with Orange County recording the biggest percentage gains (according to CoreLogic).
Laguna Beach Home Values have grown at an even higher pace. Rated as one of the “Best Places to Live” (Sperling’s), the median listing price for a Laguna Beach Home was $1,965,000 (from end of Sept. 2016 to end of December 2016) with an 11% increase in median home sales in the past year.
Even if you consider real estate appreciation at a very conservative 5% – if you bought a $1,000,000 home (and put 20% down, an investment of $200,000) the property could increase in value $50,000 in the first year. That means you would earn $50,000 with an investment of $200,000, therefore your annual return of investment would be an impressive 25%. And, since both the interest on your mortgage and your property taxes are both tax deductable, the government is essentially subsidizing your house purchase!
Beyond the lucrative investment of owning this “tangible” investment that you can live in, your home is like an automatic savings account, accumulating savings in two ways: Each month a portion of your payment goes towards the principal (paying down the balance) and this appreciates over time. Plus, you get the benefit of any improvements you make (and most of these improvements are also tax deductable!).
You can also rent out the home as a vacation rental (an incredibly lucrative investment here in the resort town of Laguna Beach – we can show you how – Connect with our team to learn more!) or as a long term rental for investment purposes. This way your hard earned money is working for you instead of going into another landlord’s pocket.
Whether you are just beginning to consider the benefits of home ownership, are relocating and contemplating a purchase over renting for investment purposes, or if you are looking to upgrade to a larger property along the Laguna Coast, here are a few tips that will facilitate your house hunt and help you find the perfect home.
Laguna Beach Home Search Made Easy
The most important step to making a good financial decision is to plan ahead.
Buying a home is a huge investment and it is not a decision that should be made lightly. Before you begin your search for the perfect Laguna Beach home, do your homework and prepare ahead of time.
If you need to sell your current home first make sure to fix it up to sell so you can get the best price.
Follow real estate market trends to get a better understanding of what you can expect in terms of interest rates, market competition, inventory and other important aspects that will affect your purchase.
Get Your Finances In Order
A big part of planning ahead includes getting all of your finances in order.
If you are planning on buying a home then make sure that your personal financial situation is stable and secure. This is definitely not the time to apply for new credit cards, make any big purchases or significant career changes.
Lenders look for stability. Make sure to put all of your important financial documents together in one place where you can easily access them in case your lender needs them.
These include pay stubs, tax returns, credit card statements, car statements and other important financial information. It also doesn’t hurt to check your current credit score.
Hire A Realtor
Buying a new home is one of the most important financial decisions you can make and the experience can be extremely time consuming, stressful and confusing – especially if you are a first-time home buyer or investor. While it is possible to represent yourself in a sale, we highly recommend that you work with a licensed and experienced realtor in the area you are looking to purchase. A trained professional should have your best interest at heart and can help ease some of the confusion and frustration associated with a real estate transaction.
A local agency will direct you to all active listings on the market that meet your specific criteria and save you time and money while targeting your ideal Laguna Beach home. An area expert like Laguna Coast Real Estate typically knows of properties just entering the market and not yet listed on the MLS.
Make A List
When you begin your actual house hunt make sure you have a list of what you are looking for in a home.
It can be very easy to get carried away when touring beautiful Laguna Beach homes. Make sure that you have the following characteristics written down when looking for the perfect property in Laguna Beach:
- Where do you want your new home to be located? Do you want to be right by the beach or do you prefer to be further inland? Do you want to be up in the hills?
- What type of property do you want? Are you looking for a condo, townhome, single-family home, custom property or something else?
- How many stories do you want in your new home? One, two or more?
- Do you want a Laguna Beach home overlooking the ocean and close the beach? Know your priorities.
- How many bedrooms and bathrooms do you need in your new home? What square footage are you looking for?
- What amenities do you want in your new home? Pool, Jacuzzi, fireplace, deck, extra guest room, a Catalina Island view…?
While it is important to know what you are looking for in your future Laguna Beach home, it is also important to be flexible.
Unless you are building a custom property from the ground up it can be difficult to find a property that perfectly meets all of your wants and needs. The closer you are to the beach, the more expensive the home – will that “white water ocean view” home still fit your budget?
Prefer to Have a Professional Find Your Home?
If you are interested in buying a home in Laguna Beach don’t hesitate to connect with the real estate experts at Laguna Coast Real Estate, we are here to help! Laguna Beach is a wonderful Southern California destination that is highly popular year round and offers residents an outstanding lifestyle, a seven-mile stretch of sand and surf as well as a year round retreat for art lovers, nature enthusiasts and beach-goers.
We would be more than happy to help you find the perfect Laguna Beach home and guide you through your real estate transaction.
Whether you are looking for a primary residence in Laguna Beach or a luxurious vacation home overlooking the stunning beaches you are sure to find the ideal property to fit your needs.
Follow our advice for buyers and tips for finding your perfect Laguna Beach home and you will be soaking up the sun from your own private deck in no time!
Connect with us today so we can set up a time to meet and discuss your real estate options in Laguna Beach!