Sunday, March 22, 2015

The Silicon Valley Techies Are Coming! And They're Buying Real Estate in Los Angeles!

Image From RadioLive
In a recent Los Angeles Times article, it was pointed out that the tech moguls are "snapping up" properties in Southern California in a very big way.

Since these high rollers been getting priced out from purchasing big homes up north, they have come south in search of their trophy property. Their weekend getaway. Their pied-à-terre.

This is fueling demand for real estate throughout greater Los Angeles and contributing to driving prices up even further. It's also a very big hint that, just like Randy Newman pointed out in his ode to Los Angeles song, everyone is back to loving LA even more!

So for those of you who live here and have always dreamed of owning a home in Los Angeles, it's time. Interest rates are very very low. Like 3.8% as of this writing. Sure the prices are a bit inflated, but balanced out with low rates, even if prices were to drop a bit in the coming months (though that doesn't appear likely) an increase in interest rates will keep your costs the same as now and for years to come.

The LA Times article also pointed out:

Those who have put down roots in L.A. cite a mix of personal, financial and work-related reasons: Compared with the Bay Area, the weather is warmer and the lifestyle more laid-back. With San Francisco home prices at staggering highs, SoCal means more space for less money.

And there's more proof, according to the article:

And with a growing tech scene, plus the lure of tech-entertainment content partnerships in Hollywood, there's more business to do in L.A. In 2014 the Los Angeles-Long Beach region broke into the top five metropolitan areas by venture capital investment for the first time, with 171 deals totaling $2.05 billion, according to the National Venture Capital Assn., whose records go back to 1995. Last year, the number of Westside homes purchased by buyers who listed a mailing address in Santa Clara County, San Francisco County or San Mateo County more than doubled from the year before, hitting the highest number since 2007, according to data provided by CoreLogic DataQuick. The firm looked at home sales in Santa Monica, Venice, West L.A., Brentwood, Westwood, Playa Vista and Beverly Hills, areas that are close to or considered the nexus of the L.A. tech community.

One of the more interesting buyers featured in the piece was Justin Yoshimura.

Although he primarily lives in San Francisco, entrepreneur and investor Justin Yoshimura focused on Southern California when it came time to buy property, with the aim of making it his home away from home.
Justin Yoshimura

In December, he paid $2.04 million for a three-bedroom, three-bathroom home in Santa Monica for $250,000 below listing. Every few days, the 25-year-old flies north for the workweek, returning to Santa Monica on weekends. "Compared to San Francisco in particular, it's very cheap," said Yoshimura, who founded and later sold a loyalty platform for retailers called 500friends. "Santa Monica is one of the most desirable neighborhoods in L.A. and I have a yard with a pool and a beautiful home for less than what I would pay for an equivalent-sized condo in San Francisco."

So if you're still on the fence when it comes to buying your first or second home in Los Angeles, talk to me. I'll help you down. 

Visit Gerry Moylan's real estate website by clicking here