The city of Westminster is part of Orange County, California. It was founded in 1870 and then incorporated in 1957. As of 2013, it had a population of 91,739. It was originally called Tri-City, as an amalgamation of Midway City, Barber City, and Westminster. However, when Midway City refused to be incorporated, Barber City became part of Westminster but the city kept its name. The city is home to many Vietnamese refugees, who arrived during the 1970s. As a result, Westminster is also home to a place called “Little Saigon”, which has a population that is about 40.2% of Vietnamese descent. The city’s biggest employers are the Westminster School District, Southern California Edison, Ito Farms, Kindred Hospital Westminster, City of Westminster, BE Aerospace, Wal-Mart, Sears, Westminster High School, and the LBS Financial Credit Union.
Westminster is one of the less affluent parts of Orange County. Its median income was $52,633 in 2010 according to the U.S. Census. It was also reported that 16.7% of the residents of Westminster lived below the poverty line. However, the median income did increase from $49,450 in 2000, which is a positive development. However, in 2000, only 13.5% of the population lived below the poverty line. The result is that the economy and standard of living in the city is quite unique in Orange County, which is generally a very affluent part of the country as a whole. Consequently, the cost of living in Westminster is considerably lower than in the rest of the county.
Westminster Multifamily Property for Sale & Lease – Should You Buy or Lease?
If you are interested in multifamily property in Westminster, you can either buy or lease. Naturally, there are pros and cons to consider in both of these options.
Looking first at buying multifamily space, the benefits include the fact that:
- Your monthly costs are fixed, at least when it comes to the amortizations.
- You have a number of possible tax deductions, including property taxes and mortgage interest.
- You can rent out some of the units so that you can earn an extra income.
- You can build up a fairly large savings, as the property is likely to appreciate over time.
Meanwhile, the disadvantages also need to be considered:
- Not having much flexibility. If you own the property, it is not so easy to dispose of it as it takes several months to complete its sale in the event that you need to move to another location.
- Having high upfront costs, because you will need at least a 30% down payment on the mortgage.
- You will need to take care of maintenance, appraisal, and other property expenses.
Your other option is to lease your multifamily space, which also has a number of benefits:
- It is possible to get a prime property, which can do wonders for your reputation.
- You need less funds at the start because there is no substantial down payment.
- You don’t have to deal with the usual problems that come with property ownership.
Of course, there are also some downsides to leasing:
- Your monthly costs may tend to go up because of rent increases, although this depends on the lease contract.
- 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.
Westminster Multifamily Property for Sale – Trends and Statistics
- The asking price for multifamily properties in Westminster $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-Westminster 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-Westminster 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-Westminster 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-Westminster area is 21, which is a 12.2% increase over the past three months, but an 11% decrease year on year.
Westminster Multifamily Property for Lease – Trends and Statistics
There are currently no Westminster 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.