So is this the time to invest in a Newport Beach home, or would it be better to wait? There's really no single answer—it depends on how much you have, what you're looking for, and how much risk you're willing to take. Read on for some factors worth considering before investing in Newport Beach realty.
Distressed properties. The main reason Newport Beach homes are cheaper is that many of them are in financial distress. Short sales and foreclosures now make up a much larger share of the Newport Beach real estate inventory. But while they are cheaper, they also entail greater risks. If you want to buy a Newport Beach home at a discount, make sure to work with a capable agent to make sure you don't get saddled with liens or title issues. Area development. As more commercial properties get snapped up by investors, Newport Beach is facing a fair deal of development in the next few years.
On the one hand, this can be good news for those buying their first Newport Beach homes—they come cheap today but will surely grow in value as the area improves. On the other, the change may not sit well with all the neighborhoods, and this can impede the increase in value. Waterfront appeal. No doubt one of the main selling points of Newport Beach realty is its waterfront location. It's a proven fact that Newport Beach homes closest to the coast and with the best views fetch the best prices. But even with prices dropping, these are still high-end homes, and reselling them will remain difficult in the next few years. If you're planning to sell your Newport Beach home for a profit, it may be better to wait a bit. Living expenses.
There are other costs to home ownership than the mortgage payments. For one thing, homeowners' association dues are seldom brought up in Newport Beach realty, even if they take up a significant chunk of the average family's income. Look beyond low prices and see if there are any costs that can cancel out the savings, such as condo dues, property taxes, local transport, or daycare fees.