Yes, prices have fallen wherever you go in Southern California. And Condos have taken an even more significant hit. This includes the Senior Community of Laguna Woods Village, formerly Leisure World, where Condo prices are down 36% since the start of this real estate crisis!
This is because the death of the “Greatest Generation” (those people 75 + in age) and the transition to the next major generation, the “Baby Boomers”! The Greatest Generation is dying off and the Baby Boomer generation has yet to keep up with supply and demand… We are predicting that with the “Graying of the Baby Boomers” and their retirement, over the next 14 years, prices in the village will double over the next 7 years. That would be the mid-point of this retirement boom. To do the math, we are talking about 2015 prices will DOUBLE in Laguna Woods Village, one the largest alive retirement communities in Southern California!
So if you are thinking of retiring, Laguna Woods Village is a great place to retire to: 7 clubhouses, 5 swimming pools, 27 hole championship golf (only $8 a round for residents!) – It is a gate guarded community with patrol, there is FREE bus service for all residents, and over 200 clubs to join! Laguna Woods Village is truly a retirement resort community… Check out my web site for more information about Laguna Woods Village, formerly known as Leisure World: www.leisureworldre.com
According to research data released by Data Quick (March 28, 2009) “Single-family homes sell for 40% less than their peak price (June 2007) while condos sell 45% below their peak in March 2006
Have you put in offers on bank owned foreclosures or short sales with other agents and NEVER GET THE PROPERTY? I will teach you how to buy foreclosures, and furthermore, we will be successful in purchasing a foreclosure you can use for investment purposes…
Now is the New Low
Yes, you heard me right. Prices are at their lowest they will ever be RIGHT NOW! How do I know this you ask? Banks are not countering offers anymore – they are already at their lowest price. Sometimes, they will ask us in one day to give them our “highest and best” offer. This means that all of the offers are fairly close in price. In this circumstance, I would suggest upping our offer by $3 – 5 k more than the comps in order to get the property. Let’s not quibble on the price of a piece of property you are getting for let’s say $175,000 WHICH WAS WORTH $340,000 just 3 years ago! Yes, 45% less than just 3 years ago.
Yes, I have seen that it is common to have multiple offers on many Foreclosures, especially the lower priced ones, typically under $250,000. Most of these properties are selling above the “listed” or asking price. This is how I know we are at the bottom or close to the bottom of the market.
Receive a 10% Return on your Money – Better than the stock market!
If you have money, now is the time to invest in real estate – You can’t get this return in the stock market! Of course many “other” buyers are still waiting for the market to hit “bottom” and this is why it is important to BUY NOW! As humans, most people follow a “herd” mentality – they see people all rushing out and buying homes, then THEY WANT A HOME! Do what the really wealthy people do. When nobody is buying homes THAT IS WHEN THEY BUY HOMES! Why? Less competition AND LOWER PRICES for better property!
If you would like a custom report of Foreclosed homes in South Orange County, visit my web site at: www.leisureworldre.com
The senior community of Laguna Woods Village is all about the “Country Club” amenities it offers. These include the 27 hole championship golf course ($8 for residents), the fact that it is a gate guarded community – AND – one of the Top 10 safest cities in America! The Horse stables, 7 clubhouses, 5 swimming pools, tennis courts, 2 state of the art fitness centers, and only 7 miles to Laguna Beach, California. But how much is all this going to cost me? Good question! The HOA dues for Laguna Woods Village are $528 per month for a Co-op and $553 per month for a Condo. Besides all of the fabulous amenities mentioned above (and that is only a partial list), they also cover the following:
- Building Insurance (fire and damage other than earthquake)
- Cable television
- Water
- Trash pickup
- Exterior building maintenance (painting and roof care)
- Grounds maintenance
- Plumbing and electric repair
- Appliance repair and replacement (Co-op only)
- Free Bus transportation, Maintenance of streets, sewers, exterior lighting, Around-the-clock security, Full replacement fire & hazard insurance on buildings
- NO MELLO ROOS
The only thing more residents pay for is electricity, phone, and property taxes.
The “average” HOA dues for other condo developments in South Orange County are $275 per month. To compare what you get for your dues in Laguna Woods Village verses what you get in other condo developments, please see the chart below. For further comparison purposes, I have also included a Single Family home. I think you will find the differences striking!
As you can see from the Chart below (when all expenses have been added up) – Laguna Woods Village is actually $87 cheaper per month than the average South County Condo! And $112 cheaper per month than an average Single Family Home!
Furthermore, the average price of a Laguna Woods Condo is $205,000 verses $317,000 for a condo in South Orange County. That is a difference of $112,000! That extra $112,000 mortgage (at a 30 year fixed rate @ 5.2% interest) would run you an extra $615 per month! You add this extra mortgage amount to the cost of the HOA dues of $275 and you get $890 – So Laguna Woods Village is actually $362 cheaper per month! That is a big difference!
So when you add it all up, the expenses in Laguna Woods Village are actually less than they would be in a similar South Orange County Condo or Single Family Home.
HOA Check List – Monthly Expenses
* Please note the average price of a L.W.V. Condo with GOOD LOCATION and GOOD CONDITION is $205,000. The average price of a Standard Condo in South Orange County is $317,000 in a same “good location” and “good condition.” That means your mortgage would be $112,000 more or monthly, $615 more per month for the same condo, basically…
** A new roof is needed every 20 years and costs an average of $15,000. A home needs to be painted every 10 years at an average cost of $8,000 – This totals $31,000 over 20 years or $1,550 yr. or $129 mo.
Leisure World, Laguna Hills, California (now referred to as Laguna Woods Village in the City of Laguna Woods) is the nation’s leading planned residential community for seniors. It was conceived and developed by Ross W. Cortese, who built the first Leisure World in Seal Beach, California in 1960. Cortese, a man of unlimited vision, believed that a void in housing existed for a person age 52 and over.
To find out what Seniors wanted he talked to civic leaders, doctors, clergy and groups of older people. He discovered that Seniors, those 52 and over, wanted a fresh new start in their lives after raising a family, fulfilling a career and, basically, just wanted to be free of household duties and the maintenance and up keep of a home. They wanted to enjoy their “Golden Years”!
Based on his research Cortese, working with a team of planners, architects, builders and designers, started Leisure World in Laguna Hills in 1963. His concept was to build a community that would cater to the needs of seniors.
The first manor (residence) was completed in November 1964 and the last manor in September 1980. Leisure World (the name was changed to Laguna Woods Village in October 2005) has approximately (2008 figure) 18,000 people who live in one of the 12,736 residential units (6,323 co-ops, 6102 condos and 311 units in two tower buildings), 7 clubhouse (originally 6 were constructed, but a 7th was added in 2005), 5 swimming pools, 10 tennis courts, 2 golf courses, an equestrian center, 10 craft shops, 2 garden centers, 2 RV storage areas, a library, 2 fully equipped fitness centers and over 200 clubs and organizations for residents to participate in. Add to this a “free” community bus service and a residence security service that patrols the 2,095 acres and mans the various entrance gates.
When completed Leisure World contained all the elements that Ross Cortese had envisioned in the early 1960’s, security, access to local health care facilities, nearby shopping, good transportation, cultural events and programs, excellent housing, recreational and educational opportunities and various other activities designed for Seniors to ensure their freedom and the opportunity to enjoy their “Golden Years”.
Right now it is a “buyer’s market” and we have many fine homes ranging in price from $122,000 on up to $350,000. Patrick McNamee of Century 21 Rainbow Realty is an expert in this area, please check out his web site to get more real estate information about this active senior community:
www.leisureworldre.com
Article contributed by Frank J. Hill, Broker/Owner Century 21 Rainbow Realty
Used with permission
Although Laguna Woods Village is one of the most affordable senior communities in Southern California, there are still financial requirements for purchasing here. For a Stock Cooperative, or Co-op, you need $125,000 in liquid, marketable, or income producing assets above the purchase price of a home and $36,000 per year in income… “Assets” can include equity in your current home or an investment property (your own home or another family member’s home), 401 k, IRA, stocks and bonds, income producing property, etc. Also, if you make a big enough income, you might need less assets to purchase…
It is very common for a daughter or son to “go on title” 1% so their finances can help their parents move into Laguna Woods Village… This has no bearing whatsoever on your “mortage” to get the property but has everything to do with meeting the financial requirements! Your family member will have no liability in your property in regards to your mortgage…
I don’t know if these financial requirements help in making the City of Laguna Woods one of the “Top 10 Safest Cities in the Nation”, which it is, but it sure can’t hurt!
Please see my web site if you have any further questions or would like more information about the active senior community of Laguna Woods Village, formerly Leisure World, at: www.leisureworldre.com
We have both types of homes in Laguna Woods Village, but very interestingly, they are many times the same floor plan! So you can buy a “Casa Linda” home as either a “Condo” or a “Co-op” but what are the differences in ownership?
Good Question! In Laguna Woods Village, a Co-op is not any easier or harder to sell than a Condo, it appriciates - or in this current market - depriciates - at the same rate as a Condo. You get the same benefits tax wise from ownership of either a Condo or a Co-op (i.e. - you can write off your mortgage interest and property taxes). The only difference is in Laguna Woods Village is the fact that you can only rent out a Co-op for 6 months out of the year, and you can rent a Condo year around. So if you are an investor, you would want to buy a Condo so you could rent it out. If this was going to be your primary residence, then purchasing a Condo or a Co-op would not be as big an issue.
What exactly is a Co-op? The full term is ”Stock Cooperative” and they are a lot more popular back east where they have the brown stone buildings, in New York as an example. See the Diagram Below:
The problem came up in the early to mid 19th century, how can we sell the units in a building? The question comes up, well who owns the land underneth the building? So what they did, was come up with an idea where the Corporation buys the building and then each apartment in the building gets stock in the Corporation based on his/ her ownership share. To make it simple, see the diagram above, if you have 4 apartments in the building, each apartment/ home would get 25% stock in the Corporation (4 x 25% = 100%)
What you actually get when you purchase a Co-op is a Stock Certificate instead of a Deed of Trust. Rest assured, it is just as valuable as a Deed of Trust and you can even get a loan on them! Just like a Deed of Trust - getting financing is no problem!
Laguna Woods Living is all about informing you of the retirement living opportunities at Laguna Woods Village (formerly Leisure World) in Orange County, California. Please read the current posts for information about purchasing in this world class Senior Community, financial requirements for purchasing here, housing styles, and other general information of interest. Have a quesion? Leave a Comment and I will answer it!
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