Laguna Niguel is one of the most suburban towns in Orange County, California, with a population of 62,979 in 2010. The city is in the southeast of the county and was one of the very first master-planned communities. The goal was to create a bedroom community. Today, it is a very affluent community and the median household income is 31% above the average of the county, which means it is almost 50% higher than the national average. It is a particularly beautiful city with many public trails and numerous parks. It is also one of the safest cities in the county.
Laguna Niguel residents formed the Community Services District in 1986, which is first step necessary for them to take on local governance. On November 7, 1989, three years after the formation of the district, 89% of the members voted to incorporate Laguna Niguel. On December 1, 1989, it became the 29th city in the county.
Laguna Niguel Multifamily Building for Sale & Lease – Should You Buy or Lease?
If you are interested in multifamily space in Laguna Niguel, the usual two options are buying or leasing.
Let us take a look at the benefits of buying multifamily space, such as the fact that:
- You have more than one “door” (as the industry refers to it) to rent out. This means that you don’t have as much risk of not having any income at some point. Furthermore, having multiple doors helps you to spread the costs of capital improvements and repairs.
- If you have at least four units within the multifamily property, you can access different forms of finance. The income that the property can bring in will be a main consideration factor when you apply for finance for this type of property. A loan guarantee is usually required, and you will need to have the right amount of reserves and the right resources.
- It is very convenient, because you only have a single location, but several properties that provide cash flow.
Meanwhile, the cons of buying a multifamily property include the fact that:
- You have a larger initial cost than with a single family property. You must have greater reserves and down payments. While you do have more income taking care of your expenses, the expenses are usually higher and they tend to have a domino effect. If one tenant causes a problem, the other tenants can also suffer. For example, if one property has a leaking bathtub, the properties below it will likely be affected too.
- There can be an issue with turnover rates, beyond those experienced in single family units. Turnovers are generally quite costly, particularly if multiple units are affected.
- Having several tenants may mean that you have to deal with multiple problems as well. This can lead to people problems and since you are the landlord, you may end up being responsible for resolving some of them. In many locations, property owners are fined by cities and police departments for nuisance calls, for instance.
With regards to leasing, unfortunately, multifamily properties are rarely available for lease. This is because the owner of the property will look at renting out the different units, rather than the entire property. There are some rare exceptions, however. For instance, the owner may not have the ability to properly manage such an investment anymore, but wants to hold on to the property regardless. While hiring a property manager is usually the most common solution, the owner may agree to lease out the whole property and have an agreement on how to divide the earnings.
To determine whether investing in multifamily properties in Laguna Niguel is a good way forward, it is important to be aware of the trends and statistics in terms of prices, supply, and demand.
Laguna Niguel Multifamily Property for Sale – Trends and Statistics
- The asking price for multifamily properties in Laguna Niguel $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) area and the metro ($254,071.41) area.
- The index of total dollars available for multifamily properties for sale in Los Angeles-Long Beach-Laguna Niguel 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-Laguna Niguel is 24, which is an 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-Laguna Niguel 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-Laguna Niguel area is 21, which is a 12.2% increase over the past three months, but an 11% decrease year on year.
Laguna Niguel Multifamily Property for Lease – Trends and Statistics
There are currently no Laguna Niguel multifamily properties for lease. This is, as explained, 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.