Plusses and Minuses of Long Beach Condo Conversions

National homeownership by the end of the Clinton Administration supposedly rose to about 65%, the highest ever recorded. But, according to the City of Long Beach within the last few years, during that same time period, that was about how many non-owners were living in Long Beach. In other words, we were the opposite of the national picture. According to the Long Beach Business Journal, July 31, 2007 edition, the local situation may be close to reversing itself. A total of 152 conversion projects have been approved, reducing Long Beach's supply of rental homes by 2,133 since 2000.

No trend is perfect: The opportunity for homeownership has decreased homes available for renters. With long term population projections in the state predicting that the demand for housing will continue far into the future, there will continue to be a demand for housing for both owners and renters, and right now there's a demand for rental housing, and there may be some future restrictions on conversions to allow for a balance. The newly converted units are often smaller and priced lower--800-900 sq ft for a 2 bedroom--than the original condos. Some lenders need specific information on final conversion date and the current owner occupancy level, if any, to underwrite financing. The smaller 2-story buildings may not have elevators, however, remodeled new interiors with new appliances, for some buyers, may be a compensation for these other factors. Buyers should know that in dealing with a smaller building, they will also be a dealing with a smaller risk pool in their Association funding. The unit at 2138 E 1st St. is an upper floor 2 bd/2ba, 775 sq. ft, $238/month HOA dues, ocean view, in a historic district, and has been listed and on the market for 440 days, per today's MLS activity, in a building of 10 units where all others have now sold, list price $417,500. There are others on the market at lower prices than this one.

For a list of condo units in this area, please let me know, they're easy to e-mail.

Do tenants need some protections and acceptable and affordable housing stock, yes. Do buyers need lower-priced units and opportunity to buy in a selection of areas, yes. The story is not as completely simple as this, there are multiple effects and ramifications on each side pertaining to job impact, higher developer fees, higher rents, and units sitting on the market, but the City of Long Beach wanted more owner-occupied housing, and that is what is happening.

Long Beach

Best Places To Live

Every year editorial staffers get together various criteria to decide on the 10 best places to live in the country. Your criteria may not be the same, however, Money Magazine's annual article is a good way to find an overview of statistics and information, and make some comparisons.

Cerritos, for instance, has one of the top-rated high schools in the country whose students' scores far exceed the national average and outperform schools in the top 10 cities, it provides many amenities for its residents, but is not one of the top 10. For one thing, the median housing price is much higher there than the 10 selected cities. And, typical of Southern California, the air quality is lower compared to New Hampshire or Florida locations. However, Claremont is Number 5 on the 10 Best Places ot Live list, so air quality is not the only issue. And Lake Mary, Florida, (Number 4) has twice the diabetes rate than Cerritos.

But other things that change are insurance premium costs, property tax rates, crime rates, and average income. In a city such as Long Beach, the average income shows much lower than Cerritos because Long Beach is a very widely diversified city with extremes in income and demographics.

But even with all the California-bashing going on now, it has the most cities in the 1op 100 of any other state--9 in all, 5 are in Southern California: Claremont 35,900; Clayton 11,400; Coronado 25,900; El Dorado Hills 22,200; Grand Terrace 13,200; Granite Bay 24,800; La Mirada 48,600; La Palma 16,100; Moorpark 33,700.

Long Beach Housing and Traffic

City government sometimes gets lost in the shuffle of the more immediate concerns of day-to-day life, foreclosures, media coverage of housing, more foreclosures and homeland security. But it shouldn't be, because your local areas are often under one sort of study or another over a period of years.

The traffic congestion in the area of 2nd St and Pacific Coast Highway yesterday afternoon was huge coming through Belmont Shore, over the bridge towards the 405 Freeway after the conclusion of weekend recreational events along the shoreline. What perhaps a lot of people don't know is that this intersection has been the subject of a study called the South East Area Development Improvement Plan since the 1970s, a study that has been in the process of renewal and updating, and broadcast at local community meetings. The latest studies include wetlands restoration, bike paths, changes in local shopping areas, and the addition of new housing. Lennar Homes, for instance, has had a proposal for housing development in the location of the Seaport Marina Hotel for some time. Take a look at this informative slide show by the City's SEADIP Advisory Committee for ideas that may impact your living, driving, biking or shopping in that area.

Long Beach

Field Trip to Other Blogs

Here's a little review today on blogs involved in small business situations or are self-employed:

Don Simkovich in Altadena does interviews or takes tips from people knowledgeable in business, money and real estate with the goal of leaving the reader with one important tip or idea they can "take away" and apply to their situation or help them evaluate their needs. "For example," Don says, "I've got an upcoming interview I'll be doing with a coffee company, they grind their own coffee, and I'll be asking them how they chose their business, what they've learned and what's one tip they'd like to offer to someone starting their own business." Maybe you too can get an idea here!

For a break from the serious issues into the world of lighthearted shopping for stuff you might actually need take a look at Cool Steals and Deals for anything from a computer to linens. This site is run by a lady who recently and unexpectedly lost her spouse, so it would be great to support her and her site, because her site is definitely "cool".



Long Beach

Does Your Avocado Oven Scream "Fixer"?

According to this article it does. But I think it all depends on who you are (and the condition of the oven). If you're a retro person, the 1950's, 1960's, and 1970's may look like fun to you, or you may not care what year it was all made as long as it runs.

But to take into consideration all the things that go into pricing your property, "No Magic Formula" makes its point very well. Just as one oven doesn't predict a price, neither do other factors without considering the overall picture of size, number of bedrooms and bathrooms, amenities, condition, the current market trends, and location, location, location. Price may change 10% or more depending on whether or not the owner has an ocean or water view, or if the property borders a commercial area. It also depends on perceptions about an area or property, or whether or not the upgrades match area expectations. If every other house has an upgraded kitchen and bathroom, and yours does not, that will probably affect the selling price of your home unless you have other compensating factors that would be desirable to your buyer. That means you're waiting for just the right buyer and your house would probably sell faster if you had the upgrades that most of the other homes have in your area.

For buyers who worry about paying more than a home is worth (and there is no real estate cycle where this is not a fear), I could not agree more with the concluding quote of this article:

"Buy a home because you like it, you want to live there, and you're OK if the market goes up, and you're OK if the market goes down."

Mid-Year California Forecast in a Nutshell

A lot of people are searching for clues for market direction. The broad picture continues: Sales are fewer, selling prices remain fairly strong. Areas and counties vary somewhat depending on their local economy. For more information from this mid-year forecast by the California Association of Realtors, please contact me.

Contact me if you would like a current market analysis of your property in Los Angeles or Orange County, or free listings from the MLS.

Deciding on the Right Home Improvements

How do you know the right home improvements to make? It's not a one-size-fits-all. Knowing the architectural style of your home, the economic level of your neighborhood, and the usual percentage of return are things to keep in mind.

What do buyers expect to see when they walk in the door of a Mission revival or a Craftsman bungalow, or a 1950's tract home? Buyers sometimes miss your perspective and decide instead they might have to spend more money to rip it out. Are you installing a new floor to please yourself because you'll probably be there for the next five years, or are you contemplating selling in the near future? If the latter is the case, you'll probably want to make an improvement for curb appeal, not for the most expensive appearance. Staging your home for sale could put your home sale on a faster track for an offer, and might help to compensate for the neighborhood factors or other property features if a buyer can see himself living in it as a result. One of the best improvements: an outdoor patio or deck, new kitchen upgrades. One of the worst improvements: very customized spaces such as a wine cellar, sauna--or expensive technology installations such as a CAT5 cable that are outdated by the time the house sells.

Long Beach

Mello-Roos and Property Taxes

I frequently am asked about Mello-Roos Districts by those who aren't sure what they are or where they are located.

These districts were formed after the enactment of Proposition 13 in 1978 which was voted in to restrict public agencies' ability to increase property taxes based on assessed value. The 1982 Community Facilities Act was passed which gave government an alternative method to finance improvements and services.

While any county, city, school district, special district or joint power authority has the power to institute a Mello-Roos district, these districts, which are created to fund infrastructure such as streets, sewers, police protection, fire protection and similar services, are usually part of a new development which does not already have these services. They are more often found in areas such as Orange County or Riverside County where there are more post-1978 developments. The tax is not based directly on property value, but on other characteristics such as square footage and lot size of the property. It must be voted on by two-thirds majority vote by those residents living within the proposed boundaries. Large tax amounts may be funded through bonds issued by the District. There may be an ongoing maintenance fee even after the bonds are paid off.

The Community Facilities District does have the separate power to foreclose, making it all the more important to pay your taxes on time. Notice of the tax amount, if it is in your area, is found in the Notice of Special Tax which the seller must make a good faith attempt to provide to the buyer during escrow.

Long Beach

A Note for the 4th of July

It's only fitting to check in at the site for Monticello, home of Thomas Jefferson, not only because he was a President, but also his final day is recorded on a July 4 (but back in the 1800s).

Tomorrow, 76 people from 36 counties will become United States citizens in a ceremony at Monticello. These ceremonies for Monticello started in 1963, are presided over by a local judge and are accompanied by patriotic music by the Charlottesville Municipal Band.

If they haven't bought their new U.S. home yet, we hope they will soon. Many Americans don't realize that the United States is one of the very few countries where a buyer can obtain a 30-year mortgage without discrimination towards age, marital status, race, or gender discrimination, with zero down if need be. The variety of loan options available in this country does not exist in many countries where 20% down is still the standard.

Long Beach

"The Importance of Being Earnest" About Real Estate

The Oscar Wilde play is described as "A Trivial Comedy for Serious People", but in real estate there's hardly anything trivial, if at all. Buying and selling property requires a lot of signing of forms, and it may be overwhelming at the time. But at some point in time, you may well be further considering the meaning of some particular document in retrospect--this is why your REALTOR really has to have you do what he/she needs you to do. It's all for good reason.

Here's a summary concerning what seems like a picky little thing at the time, but you know what they say, the devil is in the details. Trust me, when we ask you to review your documents, and sign certain things on a timely basis, it is what we need to do for you and what you need to do for yourself, and for all parties in your sale. In this 1992 case an agent failed to provide agency disclosure at the proper time, and if you click on the link you can read the case:

Huijers v. DeMarrais -- "It was only at the time of the signing of the purchase contract that the DeMarraises received the agency disclosure statement required to be given to them prior to signing the listing agreement. The purchase contract included a statement that Larson was acting as a dual agent for both buyer and seller."

This failure led to the lawsuit above, its decision upheld by the Court of Appeal of California. It could have been avoided. Agency disclosure has long been required prior to a buyer signing an offer to purchase, or a seller signing a listing agreement. This one-page form describes the agent's fiduciary duties to his/her client and other responsibilities, and the client's signature is acknowledgment that they "got it".

How do you know if you've received everything from your agent you're supposed to have? Click here for the sales disclosure chart.

Long Beach