Fullerton Multifamily Property for Sale & Lease

Fullerton is found in the north of Orange County, CA. According to the 2010 U.S. Census, it is home to some 135,161 individuals. The city was founded in 1887, and the land was secured for the Atchinson, Topeka and Santa Fe Railway. Originally, the city was highly agricultural, focusing on citrus crops, such as the Valencia orange. Other important industries were manufacturing, transportation, and petroleum extraction. Today, Fullerton is a student city, being home to Fullerton College and California State University – Fullerton. Up to the 1990s, there was also strong industry in the city, including paper product manufacturers, canneries, and aerospace contractors. But what attracts outside visitors to Fullerton more than anything else is that it is the birthplace of Leo Fender, who is credited with inventing the electric guitar.

Fullerton has also been the home of several major controversies, particularly in terms of its police force. Allegations have been made of sexual assault against an arrested woman, as well as a homeless man with mental illness being killed. The city has faced several high profile lawsuits as a result of this situation, leading to the termination of employment of police officers, and payouts in settlements in excess of $1 million.

At the same time, Fullerton is popular because it is trying to develop property on Orange County’s last remaining undeveloped land. The developers aim to donate the remaining land as a nature reserve to the city. However, campaigners are trying to keep the entire piece of land undeveloped.

Fullerton Multifamily Property for Sale & Lease – Should You Buy or Lease?

If you are interested in getting multifamily property in Fullerton, you can either buy or lease. Before making a decision, it would be advisable to study the pros and cons of both of these options.

Looking first at buying multifamily space, the pros include the fact that:

  • Monthly expenses are predictable or won’t change because amortizations tend to be constant.
  • You can get really good tax deductions, including property taxes and mortgage interest.
  • You can rent out some of your space if there is a need for additional income.
  • You can build up substantial funds for the future, as the property is likely to appreciate over time.

There are also some disadvantages of buying a multifamily property:

  • All kinds of real property are not liquid assets. Although multifamily properties would tend to have a high demand, it would still take several months to complete a sale in the event that you would like to dispose of the property.
  • Upfront costs are high because of the required down payment, which is usually around 30 percent of the selling price.
  • You will also have maintenance, appraisal, and other property costs to pay.

Your other option is to lease your multifamily space, which also has a number of benefits, including the fact that:

  • You can get a prime property, which is important for your public image.
  • You can free up working capital because you don’t have to pay for a down payment.
  • You can focus on actually running your business, rather than on the stresses of property ownership.

However, there are some downsides as well, including the fact that:

  • Your monthly costs will gradually increase because of possible rent increases.
  • You do not build up any equity in the property, since you don’t own it.

To help choose between the two options, being aware of the trends and statistics in terms of prices, supply, and demand for multifamily property in Fullerton, can be very beneficial.

Fullerton Multifamily Property for Sale – Trends and Statistics

  • The asking price for multifamily properties in Fullerton is $314,841.90, which is a 0.7% increase over the past three months, and a 10.5% increase year on year. This is higher than the state ($206,014) and the metro ($254,071.41) area.
  • The index of total available multifamily properties for sale in Los Angeles-Long Beach-Fullerton 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-Fullerton 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 of multifamily property for sale in the Los Angeles-Long Beach-Fullerton 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-Fullerton area is 21, which is a 12.2% increase over the past three months, but an 11% decrease year on year.

Fullerton Multifamily Property for Lease – Trends and Statistics

There are currently no Fullerton multifamily properties for lease. This is in all likelihood due to the fact that multifamily properties for lease would fall outside of the realms of commercial real estate. Rather, they would form part of residential real estate, meaning they become occupied either by the owner or by a tenant.