Newport Beach is one of the most affluent cities in Orange County, CA. According to the 2010 U.S. Census, it had a population of 85,287 at that time. The Newport Harbor, which is a popular choice of those who are into recreational boats, lies within the boundaries of this city. As such, the city hosts various annual boat races that attract people from all over the world, either to participate or to spectate. Not only is this city wealthy by Orange County standards, but it is also rich by national standards. Over 25% of households in the city earn more than $200,000 per year, and the median price for residential properties in the city is in excess of $1 million. This ranks them 8th in the entire country.
In terms of economy, Newport Beach is home to Pacific Life, a Fortune 500 insurance company. There are numerous other large companies in the city, including the largest Mercedes-Benz car dealership in the world, which is Fletcher Jones Motor Cars. The automotive industry is very strong within the city, with numerous design companies that focus specifically on vehicles operating from there. Top employers in the city include a number of health care providers, the school system, local government, the automotive industry, and the tourism industry. Newport Beach has a strong economy and it is very attractive to tourists, who enjoy seeing the multi-million dollar properties, and also enjoy the beaches, particularly the surf. It is also home to the Orange County Museum of Art.
Newport Beach Multifamily Property for Sale & Lease – Should You Buy or Lease?
If you are interested in getting a multifamily property in Newport Beach, you have two major options: buy or lease the property. There are pros and cons to both choices so let us examine them.
With regards to buying multifamily space, the pros include the fact that:
- Your monthly costs are fixed because amortizations are usually constant.
- You can get really good tax deductions, including property taxes and mortgage interest.
- You get to build up a substantial amount of funds because the multifamily property will gradually increase in value over time.
Meanwhile, there are also a number of cons, such as:
- Having an asset that is not liquid. What this means is that it is not easy to sell the property in the event that you need to cash in on its value or because you have to move to another location.
- Having high upfront costs. This is because you will need to pay at least a 30% of the selling price as down payment.
- There are also maintenance, appraisal, and other property expenses to consider.
If you simply lease the multifamily space, there are some advantages, such as:
- There is a chance to rent a prime multifamily property, which is important for your public image.
- You need less money at the start because there would be no down payment.
- There is no need to be concerned about the usual problems that come with owning the multifamily property.
Leasing the multifamily space also has disadvantages, such as:
- Monthly costs may increase because of the usual rent increases, depending on the lease contract.
- You do not build up any equity in the multifamily property that you don’t own.
Let us examine the trends and statistics in terms of prices, supply, and demand for multifamily properties to help you decide.
Newport Beach Multifamily Property for Sale – Trends and Statistics
- The asking price for multifamily properties in Newport Beach $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-Newport Beach 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-Newport Beach 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-Newport Beach 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-Newport Beach area is 21, which is a 12.2% increase over the past three months, but an 11% decrease year on year.
Newport Beach Multifamily Property for Lease – Trends and Statistics
There are currently no Newport Beach 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.