Garden Grove is a city found in the northern part of California’s Orange County. It is just 34 miles to the south of the Los Angeles city border. According to the 2010 U.S. Census, it had a population of 170,883 at that time. The city is home to the Garden Grove Freeway, which is State Route 22, and this cross the city from east to west.
Garden Grove Multifamily Property for Sale & Lease – Should You Buy or Lease?
If you are interested in multifamily space in Garden Grove, be that as an investment or to run a business out of, you have two broad options available to you: buying or leasing. There are pros and cons to both of these options.
Looking first at buying multifamily space, the pros include the fact that:
- Your costs are fixed, because mortgage payments are constant month after month, unlike rent, which may increase.
- You can get really good tax deductions, including property taxes and mortgage interest.
- You can offer some of your space for rent so that you can earn some extra income.
- You can benefit from a substantial gain in the end, as the property is likely to appreciate over time.
However, the cons are substantial as well and include:
- Not having much flexibility. Being the owner of the property, you will need to find a buyer for it in the event that you want to move to another place.
- Having high upfront costs, not in the least because of a 30% down payment. You will also have to pay for maintenance, appraisal, and other property expenses.
Your other option is to lease your multifamily space, which also has clear benefits, including the fact that:
- You may be able to rent a prime property, which is important if your public image matters.
- You can free up working capital because you don’t have to pay for a large down payment.
- You can focus on actually running your business. There is no need to be stressed because of the problems that come with property ownership.
However, there are some downsides as well, including the fact that:
- Your expenses will grow because of the rent increases over time.
- 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, can be very beneficial.
Garden Grove Multifamily Property for Sale – Trends and Statistics
- The price for multifamily properties in Garden Grove $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-Garden Grove 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-Garden Grove 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-Garden Grove 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-Garden Grove area is 21, which is a 12.2% increase over the past three months, but an 11% decrease year on year.
Garden Grove Multifamily Property for Lease – Trends and Statistics
Garden Grove is perhaps most famous for its shopping opportunities and other such conveniences. What few realize, however, is that it is a reasonably affordable place to live in. While it isn’t cheap, rental rates are affordable, particularly when you take into account the areas fantastic weather and wealth of local amenities.
Unfortunately, it can be difficult to find a multifamily property to live in, because demand is so high. There are only around 47,000 residencies in all of Garden Grove, and no more than 2% tend to lie vacant. Hence, it is important that people bring all the relevant and appropriate documentation when they put in for a rental property. For landlords, this has been a fantastic development, because they will likely not have to deal with empty properties.
There are around 30 different neighborhoods in Garden Grove. The four best known ones are Lampson Avenue/Picket Avenue, Euclid Street/Garden Grove Boulevard, Fairview Street/Downie Place, and the Town Center. Demand for properties in these areas is so high, that finding a rental property is seen as virtually impossible.