Socal Multiunit Real Estate

WHERE IN THE WORLD DOES REAL ESTATE COST THE MOST?

WHERE IN THE WORLD DOES REAL ESTATE COST THE MOST?

 

In 1998, Moscow was in crisis…very much like the rest of the world is right now. A decade ago in Moscow, 100,000+ Russian citizens took to the streets as a slew of banks–and the life savings of millions of citizens–went bust.

But, the global commodities boom of the past decade has made Russia flush with cash; the ruble has appreciated 8% against the dollar since January. And Moscow has become the most expensive city in the world to live.

As Forbes magazine reports, in Mercer’s 2008 Worldwide Cost of Living Survey, Moscow tops the list with a score of 142.4, up 6% from last year–and 42% higher than New York, the most expensive city in the U.S.

Moscow is followed closely by Tokyo; London; Oslo, Norway; and Seoul, South Korea.

 

Forbes notes that New York fell from No. 15 to No. 22, because of the dollar’s recent woes. Los Angeles is the second-priciest city in the U.S., No. 55, on the world list - behind Lagos, Nigeria (No. 30); Almaty, Kazakhstan (No. 44); and Zagreb, Croatia (No. 49).

“The decline in the ranking of all U.S. cities is due to the weakening value of the U.S. dollar against most major world currencies,” says Mercer’s Mitch Barnes, a principal at the firm. “The dollar has been declining steadily for the past several years, which has resulted in an overall decrease in the cost of living in 19 U.S. cities, relative to other major global cities studied.”

Get the original @

http://www.forbes.com/2008/07/23/cities-expensive-world-forbeslife-cx_zg_0724expensivecities_slide_2.html?thisspeed=20000

 

California Recycles is offering FREE pick ups in October

California Recycles is offering FREE pick ups in October

Today’s public service announcement…

It’s good to be green, everyone wants to do nice things for you. California Recycles is offering free pick ups for businesses and residence during the month of October in the following areas:

October 13
Downtown LA
Please RSVP by noon on October 9th to be included on our schedule.

October 15
Santa Monica and West Los Angeles
Please RSVP by noon on October 13th to be included on our schedule.

October 21
Woodland Hills and Calabasas
Please RSVP by noon on October 17th to be included on our schedule.

October 24
Beverly Hills and West Hollywood
Please RSVP by noon on October 22th to be included on our schedule.

All Items need to be together and ready for pick up.

To be included in the Free Pick Up please RSVP by sending your completed pick up request form http://www.californiarecycles.com/request.htm via email to info@californiarecycles.com of by fax to 310-478-3005.

It’s easy to be green.

HOW GREEN RENNOVATIONS PAY OFF

Green remodeling can pay off — not only in lowered utility bills, but also in buyer appeal when the property is sold.

 

Green Seal Certified

 

 

 

 

Here are some green things to consider:

 

~ Energy-efficient products. Choose Energy Star appliances, double-paned windows, low-flush toilets, and compact fluorescent light bulbs.

 

~ Spray foam insulation. Seal the home with insulation that doesn’t let the heat or cooled air leak out.

 

~ Sustainable wood flooring. Select flooring certified by Forest Stewardship Council, which protects forests by managing the amount of wood harvested annually.

 

~ Locally made products. Buy products made less than 250 miles away to reduce transportation costs. Granite, for instance, is generally imported from afar.

 

~ Nontoxic paint. Use paint that is low in volatile organic compounds (VOCs) — chemicals that evaporate into the atmosphere. Look for Green Seal certified brands.

 

Source:

http://www.realtor.org/RMODaily.nsf/pages/News2007123106?OpenDocument

LOS ANGELES IS THE 6TH MOST DESIRABLE PLACE TO BUY MULTIUNITS

LOS ANGELES IS THE 6^TH MOST DESIRABLE PLACE TO BUY MULTIUNITS

 

Apartment properties in Los Angeles are expected to record strong performance in 2008 with cap rates expected to climb between 6.25 percent and 6.5 percent, according to the latest National Apartment Index report from Marcus + Millichap.

 

The NAI is a snapshot analysis that ranks 43 apartment markets based on a series of 12-month forward-looking supply and demand indicators. Markets are ranked based on their cumulative weighted-average scores for various

indicators, including forecast employment growth, vacancy, construction, housing affordability and rent growth.

 

The report notes that tight operating conditions and low housing affordability, makes Los Angeles 6^th on the list of cities to invest in multiunits.

 

As we’re all around, locally, layoffs in housing-related industries have slowed employment expansion in recent quarters, but job growth is forecast to accelerate slightly this year, supporting renter demand for apartments. In

addition, the income required to purchase the median-priced home is nearly $100,000 higher than the metro’s median household income, and with credit for marginal buyers essentially nonexistent, the transition from renting to

owning has become more difficult. With homeownership out of reach for the foreseeable future, some renters will look to upgrade into high-end apartments, particularly in the Westside Cities, which is expected to record the metro’s strongest absorption and lowest vacancy rate by the end of 2008.

 

Strong revenue growth should support apartment prices in the Los Angeles market this year, although sales velocity will be influenced by the availability of capital. Buyers are now finding higher yields in areas such as South Bay/Long Beach, where cap rates often exceed 6 percent. In locations poised for more rapid rent growth, such as the Westside Cities, properties often trade with initial yields below 5 percent.

 

Going forward, investors seeking upside potential may want to monitor the impact of downtown redevelopment and gentrification efforts, including L.A. Live and the Park Fifth Towers.

 

2008 Market Outlook

â—† 2008 NAI Rank: 6, Up 3 Places. Slight acceleration in job growth and below-average vacancy pushed Los Angeles up three spots in the NAI.

 

â—† Employment Forecast: Employment growth is forecast to rise slightly in 2008. The projected addition of 23,000 new jobs will result in a 0.6 percent increase to metrowide payrolls, up from 0.5 percent in 2007.

 

◆ Construction Forecast: Apartment construction is expected to total 4,700 units this year, compared with 4,500 units in 2007. New development will increase the metro’s apartment inventory by a modest 0.6 percent.

 

â—† Vacancy Forecast: Vacancy is expected to edge up 20 basis points in 2008 â—† Rent Forecast: Owners will be able to implement steady rent gains, despite competition from new stock. Asking rents are forecast to advance 5 percent to $1,504 per month by year end, while effective rents pick up 4.8 percent to reach $1,452 per month. In 2007, asking and effective rents climbed 5.7 percent and 5.5 percent, respectively.

 

â—† Investment Forecast: Revenue growth will offset rising cap rates, keeping prices near current ranges.

 

Market Forecast Employment: 0.6% â–² Construction: 4% â–² Vacancy: 20 bps â–² Asking Rents: 5% â–²

 

HEAT MAPS GIVES YOU FORECLOSURE STATISTICS

HEAT MAPS GIVES YOU FORECLOSURE STATISTICS

 

There are some incredibly creative people out there designing web applications. This week’s favorite is HotPads’ “Election Foreclosure Maps” that displays foreclosure rates for congressional districts. These “heat” maps use color coding to show which districts have the highest rate of foreclosures (dark red) vs. the lowest number of foreclosures (light blue).

 

Here’s what Los Angeles looks like…

According to the site, the average foreclosure rate is 0.47 percent in Democratic districts and 0.51 percent in Republican districts, and the median foreclosure rate is 0.15 percent in Democratic and Republican districts.

 

The congressional districts with the highest rate of foreclosures are represented by:

 

• Dennis Cardoza, D-Stockton, Calif. (4.59 percent)

• Mary Bono Mack, R-Palm Springs, Calif. (4.51 percent)

• Jon Porter, R-Henderson, Nev., (4.45 percent)

 

The congressional districts with the lowest rate of foreclosures are represented by:

 

• Peter Welch, D-Burlington, Vt. (0.001 percent)

• Jerry Moran, R-Hays, Kan., (0.002 percent)

• Gene Taylor, D-Gulfport, Miss. (0.003 percent)

 

Foreclosure data company RealtyTrac supplies foreclosure information to Hotpads.com.

 

Heat Mpas can be found @ this cumbersome link http://hotpads.com/search/election-2008#lat=38.61687046392973&lon=-115.13671875&zoom=12&bottomZoom=17&previewId=election-2008&previewType=area&detailsOpen=true&template=political&listingTypes=foreclosure&includeVaguePricing=false&pricingFrequency=once&loan=30,0.059,0&areaLabels=Congressional&areaBorders=heatMapForeclosurePerHousehold

Infor courtesy of http://www.inman.com/news/2008/10/7/heat-maps-reveal-politics-foreclosure

Interesting Local Websites

Interesting Local Websites

www.Gasbuddy.com links to the local gas prices in your neighborhood. Consumers report in real time the price they paid to fill up their tanks. This tool is another excellent way to motivate people to visit your site each time that they need to fill up.

www.Everyblock.com offers Los Angelenos a wealth of information, including business reviews, permits, crimes, liquor licenses, real estate listings from Trulia and Redfin, restaurant inspections, zoning agenda items, as well as maps pinpointing relevant locations.

www.walkscore.com, as you know, we like www.walkscore.com. (Check out post http://www.santamonicapropertyblog.com/?p=303) Walk Score allows your Web visitors to determine the “walkability” of various neighborhoods. Plug in your address (or the address of any of your listings) and you’ll receive a score between 1 and 100 rating how “walkable” that address is. The site grades walkability based upon the convenience of various businesses to the residents, income mix, parks and public space, nearby schools, bike paths, and a “pedestrian-centric” design. They also evaluate how accessible the area is for the disabled, what the flow of the traffic is, and how comfortable and/or convenient it is to use mass transit if available.

Highlight Interesting Architectural Properties in Your Area with www.Ourbania.com - a site for real estate enthusiasts who want to share pictures and other information about “the buildings that shape our cities worldwide — innovative existing and future projects, from bridges to skyscrapers.” www.Ourbania.com is an excellent sightseeing resource if you’re traveling to major cities both inside and outside the United States.

www.RottenNeighbor.com lets you “Rat Out” Lousy Neighbors and Landlords.
www.RottenNeighbor.com reports on noise, odor and other neighborhood nuisances. There is also a place to report great neighbors as well.

www.Introin.com provides information about the availability of rentals as well as an evaluation of the buildings and their landlords.

If you?re trying to park in downtown Santa Monica, http://parkingspacenow.smgov.net/ offers realtime parking space availability.

The original version @ http://www.inman.com/buyers-sellers/columnists/berniceross/cool-real-estate-web-tools

 

INVESTORS STILL LIKE REAL ESTATE

INVESTORS STILL LIKE REAL ESTATE

A survey of more than 1,000 private and institutional real estate investors reveals that the majority are looking to invest more funds in the commercial real estate sector, according to the 2008 Real Estate Investor Outlook, conducted jointly by National Real Estate Investor, Marcus & Millichap and Countrywide Commercial.

“To see that a majority of investors are still planning to increase real estate holdings and that the percentage is higher than last year is a strong validation that they are separatingcapital markets issues from commercial real estate fundamentals,” says Harvey Green, president and CEO of Marcus & Millichap Real Estate Investment Services.

The Investor Outlook survey reveals that 62 percent of respondents plan to increase allocations in real estate over the next 12 months compared to 60 percent in 2006, 69 percent in 2005 and 74 percent in 2004. Only 7 percent of real estate investors plan to decrease their investments in real estate over the next 12 months.

“Investors are going to invest more in real estate because pricing is more attractive and they’ll be able to get slightly higher yields,” says Chris Tokarski, managing director of Countrywide Commercial’s real estate finance group. “Of the investors who plan to increase their real estate holdings, the average estimatedincrease is 21 percent.”

The theory: “Availability and cost of debt may have changed, but healthy occupancies, rent growth, lack of overbuilding and moderation in prices are the drivers behind the optimism,” adds Green.?Investment sales activity in 2007 is on pace to eclipse 2006?s $356 billion, according to Real Capital Analytics Inc. As of October 1, the New York-based research firm, which tracks all deals $5 million and above, had recorded $356 billion in sales of the five main property types (office, apartment, retail, industrial and hotel).

Respondents have an average of 19 years’ experience in the industry and an average of $36.6 million invested in real estate. On average, 62 percent of respondents? portfolios are allocated to real estate.