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What will be the best investment you ever make after your health? Read on….

Who can afford to buy a house? Answer: Very few people. So “would be” first time buyers are either looking to their parents to help them with their downpayment or they are renting. Millennials have been renting at a steady pace due to the fact that they simply cannot afford to buy a home due to mounting college debt.

The upside for investors is there is a growing trend for Multi-Family properties, and due to the undersupply of these homes, supply and demand is predicted to skyrocket over the next 20 or so years.

So what are the upsides in investing in Multi-Family homes over multiple single family homes other than this new supply and demand?

1. There is no waiting for market forces to drive up the value. Multi-Family properties work on forced appreciation. If you engage in a proper repositioning strategy to your investment, you will be able to generate wealth in a relatively short period of time.

2. The fact that multiple tenants pay much of the expense limits your risk. If you rent a single-family home and it goes vacant for months, you will be paying the mortgage. But say two tenants decide to vacate your four-plex, you do not need to worry much as you still have two rents coming in to cover the expenses.

3. Economy of scale will make it much easier to manage the investment. When all of your units are in one location, the per-unit expenses will be much less. There will only be one landscaper, one garbage service, one building to maintain and collecting rent / evictions will be much less of a hassle than if you have multiple single family units all over town.

4. Less work on purchase. Think of the convenience of visiting one property, negotiating with one owner, and come to one closing with that owner. You will save a ton of time and be able to focus on your new investment much quicker

5. Who has figured this out yet? Most people are still putting their yearly savings into the stocks and shares. If you are smart you will be buying a rental property every year or two.. If you get in now, there will be much less competition with other investors – due to the fact that many property investors feel that its too difficult to buy a multi-family unit. Don’t be swayed by this, it’s much easier than you think and will be a much smarter buy in the long run.

So if you’re thinking about getting into the Multi-Family property game, I can certainly help get your started in your search. Contact me today: juliette.hohnen@elliman.com and I will find you a money maker that will be easy to maintain and will make more money than stocks and shares over time.

Venice Canals Juliette Hohnen

Oh, those Venice Canals (A Brief History)

Who doesn’t love the Venice Canals?  Yes of course the ones in Venice, Italy, but what about the ones in OUR Venice, that house stand up paddle boarders, homemade rowboats, boats in the shape of a swans and a plethora of bikes and pedestrians? Lined with California-style bungalows, renovated boat houses, and now state-of-the-art modern homes that were originally designed as beach cottages, this area is one of the most sought after locations to live in Los Angeles.

But why are there canals in Venice, California and do they have any link to the ones in Italy? Is that why Venice California shares it’s name with it’s Italian counter part? Over 100 years ago, developer Abbot Kinney conceived the wild concept of building a “Venice of America,” complete with canals, gondolas and imported Italian gondoliers. This idea quickly failed and the gondoliers flew home, but, the canals remained, creating a breeding ground for Southern California culture.

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Originally it was a 7 mile long loop, with seven main canals arranged in an irregular grid pattern encircling 4 islands. Six smaller canals, known as the Short Line canals, were later added and are the only canals that exist today, the rest filled in with sediment and asphalt.

As part of Abbot Kinney’s original canal concept, he also wanted to provide transportation on a miniature railroad. There is no sign of that idea today!

By the 1920′s people started the process of filling in the canals to make roads for automobiles, however many residents resisted this move due to fear of losing waterfront property value and many community members questioned keeping the name Venice with no canals.

By the 1950′s, Venice was known as the “slum by the sea” and it wasn’t until the 1990s that a much needed restoration project was funded by the city.

The Venice canals have been the back drop of all kinds of shenanigans both on and off camera: Jim Morrison lived at 213 Sherman Canal, which was demolished and rebuilt in 2004 (I sold the house a few years ago). Bobby Klein did a famous promo shoot of The Doors along the canals and on some of the bridges in the 1960’s. One of the canals white-trellised bridges was featured in A Nightmare on Elm Street where Johnny Depp and Heather Langenkamp were seen overlooking the canal as they discussed the Balinese way of dreaming. Nely Galan’s bright canary yellow Venice canal home, designed by arguably Venice’s most famous and beloved architect Steven Ehrlich, was once (and could still be) the most popular home posted on Instagram. Other famous residents have included Julia Roberts, Kate Beckinsale, Tim Robbins and Nicolas Cage.

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One of the most fab things to do in Venice is watch the Christmas parade of boats, decorated in brightly colored Christmas lights. The canals are also a designated wildlife preserve where you can see Herons, Egrets, Sea Gulls, Pelicans, and the occasional domesticated Mallard ducks. Every so often a seal pops up or leopard shark will accidentally swim into the canals during mating season.

Next time you are biking or kayaking in the canals, bring along a headset and click here to listen to my latest monthly playlist.

If you are interested in becoming part of the Venice Canal history we will be listing fabulous modern house on Grand canal next month. In the meantime contact me about any other home in the Venice or LA area.

 

Pied-A-Terre Juliette Hohnen

Death to the NYC Pied-a-Terre Tax

People are always asking me about buying a second home in NY and about my knowledge of the East Coast market in general. Funny enough, I recently attended our company summit in NY, and met many wonderful agents in the Tri-State area who I have been collaborating with so that I can make these inquiries a reality.

There are many benefits of buying a pied-a-terre in NYC, the most obvious being an owner of property in one of the greatest cities in the world. But many buyers in the know have been leery about a possible pied-a-terre tax that has been proposed by The State of New York in order to offset taxpayer costs and help fund the MTA.

According to the Real Deal, a New York real estate news publication, the state is now considering a tax increase on real estate transactions instead and possibly killing the proposal on taxing pied-a-terre’s, citing that the tax proved to be too “onerous,” and would further complicate New York City’s already convoluted property tax system. The city’s property tax system already requires all condos and co-ops to be assessed as if they were rental buildings, which actually makes their value seem lower. For example, billionaire Ken Griffin set a record with his $238 million condo which New York City only values at $9.4 million due to this system.

A death to the pied-a-terre tax is great news for both people looking to buy a second home in the city and for agents in the area, as it would have put a major strain on the luxury market. With that said, if you have your sights set on Manhattan, you can breathe a sigh of relief, pick up the phone and contact me so I can get you connected with the right agents to help you find the perfect second home.

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The Juliette Interviews: Nancy Griffin of Venice Community Housing

I have loved being a resident of Venice ever since I moved there over 7 years ago. It’s a real community, featuring people from all walks of life, ranging from artists, hippies, nature lovers, health nuts, techie folks, and executives. People seem to care about the community here more than other places I have lived – there also is a genuine vibe that’s unique to Venice when it comes to social impact.

I recently had the pleasure of interviewing a close friend who shares my love of our ‘hood. She is a volunteer for Venice Community Housing, a neighborhood organization that provides low-income housing and services for the homeless, at-risk youth and others in need in our community.

JH: How did you get involved with this non-profit? What is your background?

NG: My background is in magazine journalism as a writer and I met my husband, architect Steven Ehrlich, in Venice, and after we built our home here we supported the legendary and now defunct Venice Garden Tour. One of the founders of the Garden Tour, Linda Lucks, introduced me to VCH by taking me to one of its facilities, a transitional center which shelters homeless women and children and helps them get jobs and find permanent housing. I began working as a volunteer there.

JH: Is homelessness getting worse in Venice and why do you think that is?

NG: Homelessness has increased 23% in Los Angeles since 2016, and it is especially acute in Venice, where more than 1,000 people live on the streets and beaches. The factors are many and complex, but primarily there’s simply a critical shortage of affordable housing for low-income families.

Venice has a rich legacy of racial and economic diversity—it’s DNA makes it a lively melting pot. As tech firms have moved in and income levels risen, I believe we need to preserve the social fabric of our community. I believe we must do what we can to help the less fortunate among us.

JH: You have an annual fundraiser called The Venice Design Series, tell us a bit more about this and how people can attend.

NG: Five years ago, a team of us led by Linda Lucks launched a curated series of private tours and events that meld the best of Los Angeles architecture and design, food and culture. We offer mini-adventures that transport you to places you haven’t seen, experiences you’ve never had, with really nice people and great food.

You can check them out and purchase tickets at: venicedesignseries.org/events/

JH: VCHP also offers youth services – can you tell us a little bit more about these programs?

NG: YouthBuild is a really inspiring program. It’s VCH’s on-site charter high school that provides people aged 18-24 the chance to get a high quality education with diploma, job training and placement, and leadership development. Being around these kids is to witness amazing transformations happening to young lives.

JH: Since its inception what kind of impact has Venice Community Housing had on combating homelessness and helping with job growth?

NG: VCH provides and manages 216 units of affordable housing in Venice, Mar Vista and Del Rey. Residents have access to services for disabilities, substance abuse and mental health issues. With the help of a new infusion of public funds designated for affordable housing, VCH is developing two significant housing projects in Venice which are going through the approval process.

JH: How can people in the community volunteer and what can our readers do to help the homelessness issue?

NG: There is so much need and so many ways to give! Read about opportunities to tutor at-risk youth, provide meals for sheltered families or be a public advocate for homelessness initiatives at vchcorp.org.

Support the Venice Design Series or make a donation!

Ski resorts

Luxury Living On The Slopes

It’s the heart of the 2019 ski season and next week is President’s Day. Many families will be taking the week off to travel to their favorite ski destination – some of them looking at the real estate and wondering if it will be a good investment or not.

Any why wouldn’t it? Especially if you travel to these spots often enough or there is a good market to rent your property for the season. But what about the luxury ski resort towns? Are they worth it? Is there a good rental market for these destinations? It all depends on what you are looking for.

Here is a list of some of the best luxury ski towns and why you may consider investing there:

1. Powder Mountain, Eden Utah: This resort is largely undeveloped, you won’t find elegant cuisine, spas, or massive lodges – but that could be a good thing since getting in early could really pay off later.

2. Sun Valley, ID: Sun Valley, in Ketchum Idaho, is known for its popular ski slopes and celebrity sightings, and it’s also a prime shopping destination. For these reasons alone, buying here is still a great option.

3. Aspen, Co: This is one of the pricier ski towns to purchase an investment home in, and the real estate is hard to come by – but if you have the means and there is availability, the value of these luxury homes is second to none, as Aspen is still one of the premier resort towns in this country.

4. Beaver Creek, Co: Beaver Creek is the “small” mountain next to Vail, but it’s known for it’s exclusivity with some of the best ski-in, ski-out homes in the country. With it’s hot chocolate mornings and champagne afternoons, this is one to consider.

5. Jackson Hole, WY: While it’s more difficult to get to, Jackson Hole is a chic, former cowboy town, that now rivals Aspen. It’s quaint and lovely, but the home prices have gone up quite a bit in recent years. It’s charm still makes it worth keeping an eye on.

6. Stowe, Vt: We couldn’t leave out an East Coast destination and because of its location, Stowe is known for its breathtaking natural beauty, which only adds to it’s appeal. Stowe has excellent shopping and restaurants and is also a perfect year round destination, making it an optimal location for a second home.

So whether you’re a skier, snowboarder or just a mountain enthusiast, there are great options to buy a second home in some of the most luxury snow destinations.

If you’d like to learn more or have a property in mind, please contact me and I will see how my team and I can help.

DISCLAIMER: 150 EL CAMINO DRIVE, BEVERLY HILLS, CA 90212. 310 595 3888 © 2018 DOUGLAS ELLIMAN REAL ESTATE. ALL MATERIAL PRESENTED HEREIN IS INTENDED FOR INFORMATION PURPOSES ONLY. WHILE, THIS INFORMATION IS BELIEVED TO BE CORRECT, IT IS REPRESENTED SUBJECT TO ERRORS, OMISSIONS, CHANGES OR WITHDRAWAL WITHOUT NOTICE. ALL PROPERTY INFORMATION, INCLUDING, BUT NOT LIMITED TO SQUARE FOOTAGE, ROOM COUNT, NUMBER OF BEDROOMS AND THE SCHOOL DISTRICT IN PROPERTY LISTINGS SHOULD BE VERIFIED BY YOUR OWN ATTORNEY, ARCHITECT OR ZONING EXPERT. EQUAL HOUSING OPPORTUNITY