This question was asked by one of my potential land buyers: Should I be buying Land in the greater Los Angeles area, or should I be buying land in the Metaverse? I hear there is a huge real estate boom in the Metaverse. What should I do? My answer was not what you would expect: There are risks and rewards for both.
Call me old fashioned, someone who has been around a long time. I prefer to buy something tangible, such as a vacant lot in the greater Los Angeles area. I remember when people were buying land on the Moon. Seriously, I was a young kid, and I just scratched my head, and I did not think it was a good idea. This is the same view I have today of buying land in the Metaverse.
Now, just to be clear, every person who bought land in Los Angeles twenty-five years ago and either built or resold the land, managed to make mega profits. To put things in perspective, 25 years ago homes were selling in the Hollywood Hills somewhere between $350,000 - $600,000. Now these same homes are selling from $3 million - $30 million. Respectively the land values have increased as well.
I have only known of one seller in the greater Los Angeles are who paid more originally for the land, than what the land sold for years later. Just to be clear, this person bought a vacant lot that was with Ready to Issue Permit Status (RTI). For those who are not familiar with what RTI is, that means all he had to do was start building his home right after the purchase. Instead of waiting 15-18 months for the approvals.
Keep in mind, that the permits have a life expectancy, you need to begin building or the permits expire. Six months is the time frame you need to start breaking ground. Clearly if the permits expire the value depreciates as well. Most people who spent the time, the effort, and the money to get to this point will begin the building process.
Now with that said, buying land in Los Angeles has a tangible value, even if you just hold on to it for a decade or more you will reap huge financial benefits. I have noticed that people are scratching their heads how difficult some of these lots are when it comes to building.
True, building costs can range from $250 -$1,000 per square foot. Is it worth it? Absolutely, especially when homes are selling for $1500- $2500 per square foot. Hence, the idea is to get to the finish line, and then not only do you have a house that cost you less to build then to buy on the open market, but more importantly it is specifically to your liking.
In conclusion my advice it to buy ‘real’ land and you will reap many financial and personal benefits, rather than buy land on the Metaverse.
If you are looking for a seasoned Land Specialist in the greater Los Angeles area, please reach out to me for straight advice.
Wishing you a safe and healthy life and I look forward to your comments. If you are looking for a knowledgeable, focused and goal-oriented Realtor in the Beverly Hills area who will help you achieve your Real Estate goals, please reach out to me directly! If you are looking for a pet friendly Beverly Hills Realtor who can handle and sell the most difficult properties that no one else could, please reach out to me directly!! If you are considering buying or selling a home, a luxury home, luxury investment real estate, luxury vacation homes, or luxury beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Marina Del Rey, Venice or Malibu, feel free to contact me at 310.486.1002 ( m) homes@endrebarath.com or visit one of my websites at https://www.endrebarath.com I contribute a portion of my commission to local animal rescue organizations. Endre Barath, Jr. Realtor at Berkshire Hathaway HomeServices California Properties DRE#01238708
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