This article can be found in The Argonaut, where Lisa Phillips is a regular contributor.
Q: Can I actually afford to buy a home in Marina del Rey? Am I too late? What can I get for my money if I’m looking now?
A: As an experienced Real Estate Brokerin Marina del Rey and surrounding areas, and more importantly, as a resident of Marina del Rey for almost 20 years, I have seen this area explode with change. Some change has been great, offering new shopping and dining options for residents and increasing value for property owners.
With many new jobs in the surrounding areas along with much revitalization, the Marina has been “discovered” by so many for the gem it is. It can be intimidating to enter into the real estate market here, where everyone seems vying to be. Do not be discouraged by those saying you have missed your opportunity to buy- as an investment, there is no bad time to buy a home- what is important is that you do it when you can. When the economy is doing well and income levels are stable is when people can afford to buy, to put aside that down payment money, and to qualify for a loan. Unfortunately, when the bottom drops out of the economy and the real estate market drops, many people are not in a position to take advantage of bargain prices- in fact, that’s what drives the prices down- lack of able buyers. As someone who has worked in this industry and bought and sold my own homes through multiple ups and downs in the real estate market, I strongly believe that you get in to the real estate market when you can. Period. (I have similar views on long term stock market investments, but that’s for a chat over coffee.)
Personal note: I bought my own townhome on the Marina peninsula at what were record highs at that time, in 2005, and put even more money into the remodel, only to see the bottom drop out from under us, and our home value drop to lower than we had paid for it, let alone the additional funds expended. Despite being in real estate, I was lucky enough to maintain my livelihood, and stay the course. Although our property values had dropped, the fact that we had invested in such a prime area of Los Angeles meant that it did not suffer the massive decreases felt in other areas, and it was also one of the quickest areas to recover. Thirteen years later, our property value has surpassed what we had hoped for, and is a key asset in our future financial planning.
According to the Federal Reserve’s most recent Survey of Consumer Finances (2016), the median net worth of homeowners was almost 45 times the median net worth of renters!!!Homeownership is indisputably one of the most significant paths to building net worth.
So, how much avocado toast do you need to give up to buy something? At this moment in time, here is a sampling of condos that you can buy in Marina del Rey (this is always changing, don’t be discouraged or feel limited by what’s on the market or prices as tomorrow there will be more options- just be ready for them!)
- Lowest condo prices on the market in MDR today are in the Marina City Club. As low as $620,000 for a 2 bedroom unit. The seeming affordability of those units is offset by the high HOA dues and ground lease payments-for this particular unit, more than $2,300/mo. On the plus side, you can cancel your gym membership as City Club has so many amenities, including a sizeable gym, pools, and more. The views are to die for. Unit prices vary based on location in the complex, square footage, and condition. The complex itself is dated. While some see that as a negative, I see the potential. Someday this property will be revitalized, further increasing desirability and value for all of its owners.
- Currently the next best pricing in MDR is in the La Villa Marina community. These townhouse complexes, built in phases from 1966 through 1980, are east of Lincoln, and just south of Mindenao Way. There are currently 2 bedroom and 3 bedroom units available for under $1M. HOA dues vary per each villa, from $400 to almost $900 monthly. Many of these units have not been updated to their full potential or modern tastes, leaving great opportunities for the savvy investor. Properties in these complexes that are remodeled well sell for a premium. Most importantly, as a home, you can live in Marina del Rey, have your own private garage with direct access, tons of storage, private patio, pools and spas with a great feeling of community.
- Prefer a high rise with even more amenities? Try the Marina Pointe condos- right now, there is a 2 bedroom on the market for just over $1M. It has been redone, but all those amenities, including great common areas, pool, valet parking for guests, come with steep HOA fees of more than $1500/mo.
- A popular alternative right now- the “Marina Arts District”, full of loft-style condos, with hip vibes and great walkability. Also, east of Lincoln, there is one such 2 bedroom unit currently available for a little over $1M and affordable HOA dues of less than $500/month.
- Don’t forget the Marina peninsula, and don’t ever give up your dream of living at the beach- It may be within reach! While the most expensive condo on the peninsula right now is $8M, the lowest price for an ocean front 2 bedroom is $1.7M with HOA dues of less than $500/mo. Just steps from the beach, you can find a large 1 bedroom listed for less than $1.3M and a 2 bedroom for less than $1.5M, with HOA dues of $400 or less.
Again, this is just one moment in time- expect more properties to become available as we get further into spring. Take the time to meet with a lender, see what you can qualify for (you may be surprised) and don’t miss out on the dream of homeownership. The biggest mistake you can make is not in timing of your investment, but in not making the investment at all.
Disclaimer: This article is intended to be primarily for entertainment purposes, and is not to be considered legal advice.
ABOUT LISA PHILLIPS, ESQ / CA Bureau of Real Estate Lic# 01189413
Lisa Phillips is an active Realtor in the Los Angeles area, with more than twenty years as a practicing real estate broker and attorney. Her unparalleled knowledge of real estate, from local markets and pricing to legal issues and deal-making, has made her a trusted and valuable asset to her clients. In addition to her real estate and business savvy, Lisa is passionate about helping others, and works tirelessly to achieve the best results for her clients. For more information, please visit www.LisaPhillipsRealEstate.com