By MAX MARGULEAS | Special to the Palisadian-Post
Many millennials are now finding it almost impossible to live in the area they grew up in, as they are being negatively impacted by the current affordability crisis spreading throughout our nation.
Millennial buyers, unable to compete with the high priced all cash buyers seen prevalently throughout the Palisades and Los Angeles, are forced to look elsewhere.
The average home in the Palisades is $3,948,887, and with property values doubling the past seven years, most people who grew up in the Palisades will never be able to afford a home here.
These are the cold hard facts many millennial homebuyers are faced with, forcing them to look for areas that are overlooked but hold strong potential.
With a passionate desire to remain involved in the real estate game, millennials are now using their technological knowledge to take ownership of properties throughout the country.
One growing online platform for buying and selling midsize investment properties is Roofstock, which allows the user to pinpoint emerging markets in rising cities. Websites similar to Roofstock could be the direction that the future real estate industry is heading in, with the ability to manage investment properties from afar.
In doing so, online investment property managers are wisely setting up their future financial success through managing property. Many of the wealthiest people today have accumulated their wealth through owning property, and millennials who invest from a young age have the ability to create a better future for themselves.
The benefits of turning to online platforms to manage real estate is tempting for many users, as they have the option to choose rental properties with varying degrees of expected monetary returns while factoring in both location and tenant history.
Another added benefit from online managing is the possibility to have a local property manager oversee the building, so you can expand your property empire remotely. This allows a new generation of investors to utilize their time more efficiently and effectively, while maximizing profits.
Utilizing technological platforms, millennials are now flipping the home buying formula by purchasing the majority of their investments from out of state.
With the average home prices in desirable areas reaching astronomical prices, overlooked areas are now gold mines for property owners looking for the next popular city to emerge.
For example, the Palisades housing market is unlike 99% of the other housing markets in the entire country. The land alone for the average lot size in the Palisades is worth roughly $430 per foot. So, for example, a 6,500-square-foot lot in the Alphabet Streets sells for $2.8 million, and the lowest priced home in the Palisades on the market is shockingly sitting at $1,395,000 and is on Sunset, an unusually low extreme.
Well, what about condos you ask? The least expensive Palisades condo is $695,000 for a one-bedroom on Sunset.
By being priced out, millennials are turning to online applications to discover property investments. This creates a unique opportunity for millennials to invest in places where the average house is a couple hundred thousand dollars.
Millennials are willing to make the risk in order to increase their revenue, by creating opportunities across the country to own property.
Max Marguleas is a sales partner at Amalfi Estates, Pacific Palisades’ #1 Real Estate Brokerage. His core business strategy is serving the needs and interests of his clients and achieving fantastic results for everyone he works for. If you are thinking of buying a home or selling your own, contact Max at 310-383-6141 or stop by Amalfi Estates at 984 Monument Street, Suite 105.