Anaheim is located in California’s Orange County. The 2010 U.S. Census indicated a 336,265 population, which means it is Orange County’s most populous city, and the 10th most populous in the state. It is also Orange County’s second largest city after Irvine in terms of land area, and it is famous for its convention center, sports teams, and theme parks. Founded in 1857 by 50 German families, it was incorporated in 1876. Since then, the city has built on its extensive industry, as well as tourism. In 1955, the Disneyland Resort opened in the city, making it world famous.
Anaheim Multifamily Building for Sale & Lease – Should You Buy or Lease?
If you are interested in multifamily space, either as an investment or as a business, you have two broad options available to you: buying or leasing. There are pros and cons for both of these choices.
Looking first at buying multifamily space, the pros include:
- That your costs are fixed, which means our business expenses are basically constant
- That you can obtain good tax deductions, including property taxes and mortgage interest
- That you can rent some of your space out so that you can get some extra income.
- That you can accumulate retirement savings, as the property is likely to appreciate over time.
However, the disadvantages have to be considered as well:
- Not having much flexibility, which means that if your business contracts or grows, you may have to sell the property sooner than expected.
- Having high upfront costs, because there is a need for at least 30% down payment on the mortgage. You will also have maintenance, appraisal, and other property costs to pay.
Your other option is to lease your multifamily space, which also has clear advantages, including:
- You can get a prime property, which is important if your public reputation matters.
- You can free up substantial working capital because you don’t have to take care of a large down payment.
- You can focus on actually running your business, rather than spending some time on managing the property.
However, there are some downsides as well, including:
- Your costs will be variable, resulting from regular hikes in rent.
- You do not build up any equity, since you don’t own the property.
To help choose between the two options, being aware of the trends and statistics in terms of prices, supply, and demand, can be very advantageous.
Anaheim Multifamily Property for Sale – Trends and Statistics
- The asking price for multifamily properties in Anaheim is $202,170.79, which has remained unchanged over the past three months. It does represent a 7.1% increase year on year. This is lower than the state ($206,014), county ($314,841.90), and the metro ($254,071.41) area.
- The index of total available multifamily properties for sale in Los Angeles-Long Beach-Anaheim is 29, which represents a 13.4% increase over the past three months but a 2.5% decrease year on year.
- The index of total number of listings of multifamily properties available in Los Angeles-Long Beach-Anaheim is 24, which is a 8.9% increase over the past three months, but a 1.3% decrease year on year.
- The profile view index multifamily property for sale in the Los Angeles-Long Beach-Anaheim metro area is 97, which is a 24.9% increase over the past three months, and a 22.5% increase year on year.
- The index of total number of units of multifamily property for sale in the Los Angeles-Long Beach-Anaheim area is 21, which is a 12.2% increase over the past three months, but an 11% decrease year on year.
Anaheim Multifamily Property for Lease – Trends and Statistics
Multifamily property lease statistics have been made available for the Santa Ana, Anaheim, and Irvine market area, also known as the Santa Ana HMA. The conditions in this market are currently very tight, with a vacancy rate of 4.8%. Since 2010, growth in the number of renter households has outpaced not just the construction of new multifamily properties, but also the conversion of existing single family homes into rental units. There is currently a demand for 11,225 new rental units, but only 2,900 will be constructed.
At present, multifamily property monthly lease prices vary depending on the number of bedrooms. The starting prices are:
- $1,700 for one bedroom units
- $2,100 for two bedroom units
- $2,600 for three bedroom units
These prices are reflective of how affluent the HMA is. However, the fact that demand for rental is now so high also shows that many people continue to struggle economically and are unable to find a mortgage.