Address: 848 Euclid #A - 90403Details: 1 bed/1 bath 620 sq ft condo, 1953 building, $212 HOA, "remodeled with wood floors"
Description: Special top floor unit with windows on three sides. Minutes to Montana Ave. Recently remodeled with wood floors, upgraded kitchen, recessed lighting. Laundry in unit. Pretty landscaped grounds.
Purchase History:
9/15/06 - $533,000
2/23/05 - $440,000
9/18/98 - $200,000
Listing History: 11/23/09 - $475,000
SOLD: 3/26/10 - $450,000
Here is a one bedroom unit which is small (620 sq ft) but in a good location. The "remodel" is recent so you are getting the upgrades for free and someone just paid an early 2005 price.
Address: 302 Ashland #102 - 90405
Details: 1 bed/1 bath 660 sq ft condo, 1971 building, $275 HOA, "gleaming wood floors"
Description: Gleaming wood floors (installed 2010), smooth ceilings and remodeled bathroom highlight the many features of this great one-bedroom condo. Good-sized living room w/fireplace & balcony overlook the lovely, tree-lined street. Kitchen opens to living, dining. Good closet space. HOA would allow installation of washer/dryer in unit. Location, location, location! Just two blocks from Main Street in Ocean Park, Santa Monica!
Previous Purchase: 6/24/04 - $397,000
Listing History: 1/21/10 - $429,000
SOLD: 3/29/10 - $412,000
This is a similar sized 1 bedroom condo and it also has new wood floors which you are essentially getting for free while paying a late 2004 price.
what would these rent for?
ReplyDeleteI estimate $1500 to $2000 a month
owning them would sure cost a lot more, like $3000 to $4000 a month.
Are they really going to appreciate fast enough to make up the difference?
Well...avg price between these two comes out to $431,000. You can get 5% rates on conforming loans and to take the opportunity cost of the downpayment into effect we assume 100% financing. That gives an ownership cost of about $1800/month. Then add on property tax, HOA, and water/sewer/trash and you are up to about $2,500/month. Taxes and interest are tax deductible so say the cost of owning is closer to $2,000...that is not even close to the $3/$4K that you suggested.
ReplyDeleteI think these units can go down in price but I don't think they need 50% haircuts as your numbers might be suggesting.
Although what is the argument for buying a one-bedroom condo in a city with rent control? It's an impractical long term residence for most people anywhere, meaning all the transaction costs of buying and selling real estate will be amortized over a very short window. And even if you're in a rare demographic that can use it as a long term living situation to fix your living costs against inflation... the rental control board would do that for you anyway, even if you don't buy.
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