What to Look for Before Spending Your Money
Buying land in Malibu is a much riskier proposition than it used to be. You NEED to know why, so you don’t make a decision that could cost you a great deal of money even if you find a great piece of land in Malibu.
Yes it’s true that a savvy investor can still make a fortune by buying the right parcel of land in Malibu. The demographics of this coastal paradise are still lucrative. The median household income in this city with 12,645 people is $133,869. Consequently, building a commercial project on land you buy can be an extremely profitable venture because nearby residents have a tremendous amount of disposable income.
It’s also true, though, that those same people who can make you wealthy beyond your wildest dreams can also give you heartache, hassles, and financial problems. That’s because the residents of Malibu have a power that’s normally reserved for elected officials.It’s also true, though, that those same people who can make you wealthy beyond your wildest… Click To Tweet
In November, 2014, a referendum gave Malibu residents the power to prevent a commercial development that is more than 20,000 square feet, and limit the number of chain stores in new retail developments. This proposition was quickly appealed to the courts, and is no longer valid.
Malibu resident Rob Reiner, the prominent movie director and actor who led the effort to pass the referendum, told the Los Angeles Times that the referendum gave citizens a direct say in development decisions for the first time ever.
Before it (development) was kind of controlled by a small group of people,” Reiner said in an article entitled ‘Voters kill airport, parks tax proposals, OK Malibu land measure.‘ “This is a big deal for everybody.”
Malibu residents’ interest in expressing what kinds of commercial development they want could be beneficial to someone who is interested in buying land in Malibu, but it could also be detrimental if you don’t know the city, its residents, and city law.
Here are four things to look for when evaluating buying land in Malibu before you spend your money:
1. Land That Can Be Developed:
Rob Reiner isn’t the only Hollywood mogul who is actively involved in trying to shape the future of Malibu. “Titanic” director James Cameron sold 703 acres of land to the Mountains Recreation and Conservation Authority for $12 million.
When he originally bought the land between 1997 and 2,000 of pristine land. However, most of it did not have access to water and sewer services that developers need. In addition, the roads that would bring prospective customers to a business on this land could be inadequate.
Spending money to buy this land would only be a small part of the investment you need to make a purchase worthwhile.
2. Land Near Schools:
People like Reiner and Cameron object to large commercial developments because they fear that such projects would bring in traffic from neighboring towns and, thus, make Malibu too crowded and noisy. Buying large parcels of Malibu land for such projects would be a terrible investment if the residents veto your proposed plan for development.
However, there are plenty of wealthy people who are interested in sending their children to Malibu’s excellent public and private schools. You could buy Malibu land in a residential development, and later sell that land for a profit to one of those people.
The malibuluxuryrealty.com blog “4 Signs You Are Ready To Invest In Malibu Real Estate” specifically suggests investing in “up and coming neighborhoods.” Those neighborhoods are often near good schools.
The city’s public schools include John L. Webster Elementary School, Juan Cabrillo Elementary School, Point Dume Elementary School, and Malibu High. The private schools include Calmont, Our Lady Of Malibu, Colin McEwen High, New Roads, and St. Aidan’s School.
3. Land Near Current Businesses:
New large-scale business developments could be blocked by Malibu’s residents, but those same residents have a need for products and services that haven’t been met by current businesses.
This article in the Los Angeles Times entitled “Malibu residents complain of becoming Rodeo Drive by the Sea” details the problems that residents are having finding everyday products, although there are a large number of “fancy boutiques.”
Famous actor Dick Van Dyke, a Malibu resident, (the director of his famous television show is Rob Reiner’s father), complained to the Los Angeles Times that he had problems finding socks and underwear in Malibu.
You could buy land in Malibu near an existing commercial development and open stores that would be extremely profitable, resell the land to a thriving commercial enterprise, or rent the land to business executives who have expertise in running profitable stores.
4. Land Near Beaches:
Beaches are an amenity throughout the United States, and Malibu is loaded with them. They include Dan Blocker Beach, County Line Beach, Malibu Beach, Point Dume Beach, Surfrider Beach, Topanga Beach, and Zuma Beach.
The malibuluxuryrealty.com blog “Beginner’s Tips For Malibu Land For Sale” points out, though, that buying land on the beach could be a problem because the city has numerous regulations about such property.
Buying land a few blocks away from a beach could be a lucrative investment if you want to resell the land to a wealthy individual — and could also be a good place for you to live.
The malibuluxuryrealty.com blog “Malibu Homes For Sale: 6 Things To Expect”points out how lucrative reselling land to a homebuyer could be. The median price of a Malibu home at the end of 2015 was $1,875,000.
More information on buying land in Malibu can be obtained by calling Russell Grether at 31o.994.4247 or sending a message.