How to Invest in a Short-Term Vacation Rental Property in Newport Beach

Newport Beach, CA, is one of Southern California’s most desirable destinations for short-term vacation rentals (STRs). With its stunning beaches, upscale amenities, and year-round appeal, it’s no surprise that many investors are looking to purchase properties here for platforms like Airbnb and VRBO. However, there’s an important factor you need to consider before diving into this market: STR permits.   Understanding Short-Term Rental Permits in Newport Beach   The City of Newport Beach has capped the number of STR permits at 1,500, and all permits have already been issued. In fact, there are currently about 650 people on the waiting list, which makes obtaining a new permit highly unlikely for the foreseeable future.   Here’s the good news: STR permits are transferable. If you’re considering buying a property for short-term vacation rental purposes, you’ll need to purchase one that already has a valid permit in place. This ensures you can start renting out the property immediately without waiting indefinitely for a permit to become available.   For more details about Newport Beach’s STR requirements, visit the City of Newport Beach website.   Looking for Alternative Investment Opportunities? Consider San Clemente   If you’re open to exploring other locations for short-term vacation rental investments, San Clemente is another excellent option. This charming coastal city offers a laid-back vibe, beautiful beaches, and strong tourist appeal.   San Clemente’s approach to STRs may provide more flexibility for investors compared to Newport Beach. It’s worth exploring their STR guidelines and requirements to determine whether this city aligns with your investment goals.   Why Invest in Short-Term Rentals?   Short-term rentals offer unique benefits for investors: •Higher Revenue Potential: Compared to long-term rentals, STRs often generate higher income, especially in high-demand vacation destinations. •Flexibility: You can block off dates for personal use while still earning rental income the rest of the year. •Appreciation: Coastal properties in areas like Newport Beach and San Clemente tend to appreciate over time, making them solid long-term investments.   Take the Next Step Toward Your Investment Goals   Investing in a short-term vacation rental property requires strategy and careful consideration of local regulations. Whether you’re targeting Newport Beach or exploring other options like San Clemente, I’m here to help you navigate the process. Pro-Tip: How's the rental market? Research short-term rental data with AirDNA.co   Ready to start? Book a consultation with Danae Aballi today to discuss your investment goals and find the right property for you.   👉 Schedule Your Consultation Now

What Do Experts Forecast for the 2025 Housing Market

The housing market is set to change in 2025, which is why I’m breaking down what the experts are forecasting for interest rates, prices, and demand. Right now, the No. 1 question I’m getting is, “What’s going to happen to the housing market in 2025?” I get it; a lot of people had plans to move this year but put things on hold due to higher mortgage rates and a slowing market. This begs the question: Will 2025 be any different? The short answer is yes, although there probably won’t be a dramatic shakeup that flips the market on its head. Today, I’m going over what the top experts are forecasting for mortgage interest rates, home prices, and buyer demand in 2025. Plus, I’ll share my insights on how you can get ready for these changes before the new year even starts:  1. Mortgage rates will ease slightly. It’s no secret that higher mortgage interest rates have hurt affordability for buyers and caused our market to slow down. U.S. existing home sales hit a 14-year low in September 2024, and one of the biggest reasons why is that would-be buyers are sitting on the sidelines waiting for rates to drop. While Fannie Mae and Freddie Mac aren’t predicting rates to crash to where they were a few years ago, most experts believe rates will fall below the 6% mark for the first time since Q2 of 2022. Since mortgage rates are a key factor in housing affordability, this is fantastic news for buyers sitting on the fence. “Buyers need to take advantage of this window before it’s too late.” 2. Home prices will increase slightly. While home prices have stagnated recently or even come down in some areas of the country, prices are projected to rise in 2025. Different institutions have varying forecasts, but prices are expected to rise 2.6% when you average their predictions. This is a modest increase compared to what we’ve seen over the last few years, but it projects stability for our market. Homeowners don’t have to worry about prices crashing, while things will stay relatively affordable for new buyers.  3. More buyers will enter the market. Lower interest rates and steady prices mean demand for homes will increase. According to the Senior Economist at Wells Fargo, “Lower financing costs will likely boost demand by pulling affordability-crunched buyers off of the sidelines.” As these buyers enter the market, the pace will speed up. Homes will sell faster, competition will increase, and supply will decrease as more buyers fight over fewer options.  So what does this all mean for you? If you want to sell, 2025 is looking to be a great year for the market, so I recommend you start planning your move now so you can get a head start. On the other hand, buyers need to act fast. There will be a very short window where rates are lower, but home prices haven’t increased yet. If you’d like to plan for 2025, whether you’re looking to sell or buy, please call or email me. I’d love to help you plan your next move!

How to Choose the Right Way to Sell Your Home in Irvine and Orange County, CA

Selling a home in Irvine, California, or anywhere in Orange County, can feel overwhelming. Should you sell as-is? Renovate to boost its value? Or opt for a fast cash sale? With a competitive real estate market and high demand in communities like Turtle Rock, Woodbridge, and Shady Canyon, it’s important to choose the option that aligns with your goals and timeline.   At The Aballi Group, we specialize in helping homeowners throughout Irvine and Orange County find the best way to sell their properties. With three tailored options, you can confidently decide how to move forward.   Option 1: All-Cash, Quick Sale in Irvine and Orange County   Sell Fast, Skip the Hassle   Need to sell your home quickly in Irvine, Newport Beach, or another part of Orange County? An all-cash sale lets you close in as little as 7–14 days, with no showings, repairs, or drawn-out negotiations.   Why Choose This Option? •Fast Closings: Perfect for homeowners who need to move quickly. •Convenience: No open houses, staging, or lengthy processes. •Sell As-Is: Avoid the hassle and cost of repairs or upgrades.   This option is ideal for homeowners managing life changes, such as relocations, inherited properties, or urgent financial needs.   Option 2: Fix-and-List (Renovate Now, Pay Later) in Irvine   Renovate Your Home to Sell for More—Without Paying Upfront   Homes in Irvine and Orange County often see higher returns when updated. Through my partnership with Revive, a trusted local home improvement company, you can make smart renovations now and pay for them after your home sells.   How It Works: •Renovate Your Home: We identify upgrades that maximize value, hire contractors, and oversee renovations. •No Upfront Costs: Renovation expenses are paid after closing. •The Revive Protection Promise: Includes price assurance, contractor vetting, and a workmanship warranty.   Why Choose This Option? •Higher Sale Price: Updated homes in Irvine typically sell for more. •Fast Results: Homes with upgrades sell faster and attract more buyers. •Proven ROI: $145K+ average added profit, 28% average home value increase, 112% average renovation return.   If you want to maximize the value of your home in areas like Northpark, Quail Hill, or Laguna Hills, this is a great choice.   Option 3: Traditional Sale in Orange County   Sell Your Home As-Is, Quickly and Effectively   For homeowners who prefer to sell their homes as-is, the traditional sale option is a simple and straightforward choice. This approach relies on strategic pricing and professional marketing to attract buyers who are ready to act.   How It Works: •Strategic Pricing: Based on market trends and comparable properties in Irvine and Orange County. •Professional Marketing: High-quality photos and listings on top platforms like Zillow and Realtor.com. •Quick to Market: Sell your home without needing to invest time or money in updates.   Why Choose This Option? •No renovations required •Reach buyers looking for move-in-ready or fixer-upper properties •A fast and efficient sales process   This is perfect for homeowners in neighborhoods like Great Park, Tustin Ranch, and Lake Forest who want to sell quickly and avoid the hassle of upgrades.   Not Sure Which Option is Right for You?   Selling a home in Irvine or Orange County doesn’t have to be stressful. Whether you’re exploring a fast cash sale, considering renovations, or selling as-is, I’m here to guide you through the process.   Let’s explore your options together. Contact me today for a no-obligation consultation to find the best approach for your property in Irvine, Newport Beach, or anywhere in Orange County.

Understanding the Key Practice Changes to Buying and Selling Real Estate in the US in 2024 and Beyond

What’s changing in residential real estate in 2024? The destination is the same but the “route” is different. Meaning, there are a few new practice changes that are being implemented related to the purchase and sale of a home in the United States. Specifically: Buyer’s Agents must enter into a written agreement that clearly discloses the details of the compensation that will be received prior to touring any homes. Practice changes are moving toward all compensation being paid directly by the seller and/or the buyer. This is replacing the prior practice of “sharing” or “cooperation” of compensation between the listing broker and buyer broker. Offers of compensation to a Buyer’s Agent may not be made on an MLS.   There are 3 core agreements that govern a real estate transaction: 1. Listing Agreement: This is the agreement between the Seller and the Listing Broker. 2. Buyer Representation Agreement: This is the agreement between the Buyer and the Buyer Broker. 3. The Purchase Agreement: This is the offer and agreement of terms between the Seller and the Buyer. Going forward, there will be no offers of compensation to the Buyer Broker made on the MLS. We expect that the Buyer Broker will contact the Listing Agent on a per-property basis to get information on the Seller’s intent to pay Buyer Representation Compensation and use whatever information is provided, if any, to advise the Buyer and submit a request for Buyer Representation Compensation as part of the official offer process as may be appropriate.   Other Practices to Note Agents must clearly communicate, educate, and disclose at the earliest moment possible how compensation works in the real estate transaction, including that broker commissions are not set by law and are fully negotiable. Buyer Broker compensation must be objectively ascertainable (not open-ended), and the Buyer Broker cannot receive any more compensation than that which is negotiated and agreed upon in writing.   Pre-Agust 17th, 2024 in a typical transaction : 1. Seller agrees to pay the listing broker as part of the listing agreement. 2.Utilizing the rules of “cooperation compensation,” the Listing broker “cooperates” by “sharing” a portion of the seller-offered commission with the buyer broker. 3.For example, if the seller is offering $1,000 in total commissions, that amount is paid to the Listing Broker. The listing broker may choose to “keep” $600 and then “share” $400 with the buyer broker. Going forward, August 17th 2024 and forward, we are moving away from “broker to broker” cooperation of compensation. Keeping the same compensation numbers for ease of comparison, in this new example all compensation will be directed by the seller or buyer: The seller agrees to pay $600 to the listing broker as memorialized in the listing agreement. The buyer agrees in writing to pay the buyer broker $400. The buyer may request that the seller pay the $400 buyer broker commission at closing. If so, the seller would receive an offer that includes a request for the seller to pay $400 to the buyer broker as compensation. Assuming the offer is accepted, the seller would pay $600 to the listing broker as agreed in the listing agreement and direct that $400 be paid to the buyer broker as part of the closing process of the transaction. If the seller rejected the offer, the buyer broker compensation would remain a point of negotiation like any other term in the contract. In this example, the seller may still pay a total of $1,000 like in the past, but all compensation is directed by the seller and is “decoupled” without having broker to broker “sharing” of compensation.   Copyright © 2024 Real Broker, LLC and its affiliates. | All Rights Reserved The information herein does not constitute legal advice. Neither Real Broker, LLC, its affiliated entities nor its affiliated real estate agents make any representation as to the legal validity or adequacy of the statements herein.