Is West Hollywood the next Beverly Hills?
For decades Beverly Hills has been the go to area to live, for, CEOs, Moguls, Entrepreneurs & Celebrities. Year after year thousands of people flock from all over the world to come see the beautiful store fronts, get reservations at the most popular restaurants in hope to see an A list celebrity, and they take celebrity home tours.
What if told you that there was a place about 2 miles east of Rodeo Dr. that had the same dining, the same designer stores, the same individuals and now the same types of homes for a fraction of the cost with tons of upside in the future. Would you believe me?
That place is called, West Hollywood or WEHO for short. CEOs, Entrepreneurs, Celebrities are all buying homes for themselves, their kids, and of course as investments there. WEHO is currently overdeveloped and under appreciated by the public. With what you can get a tiny piece of Beverly Hills you can get a chunk of West Hollywood. This is all happening right under our very noses.
Why is WEHO overdeveloped? Developers are usually the first to sniff out opportunities in underdeveloped areas. They come and restore as many properties as they can because they know in the near future the area will go up in value. Naturally developing in a city next to Beverly Hills you’re bound to have a pour over of culture, people & lifestyle. WEHO being WEHO it kept its character and became slightly more elevated in charm. The value didn’t lower but it did the exact opposite and started to go up and up. So, of course you buy & build in one of the best locations on earth. They did that very thing to West Hollywood with one small caveat, they over built. Too many homes, too quickly.
How is overdevelopment a good thing for you? Let’s say you’re looking for a home, You don’t want to be in Hollywood. You don’t want to be in Studio City. You love Beverly Hills but its slightly out of your budget and really don’t want to be in a condo. Luckily for you, you have West Hollywood at the door step of Santa Monica Blvd & Canon Dr. just minutes away there is a lower cost of entry with a tremendous upside in the future. Developers built too many home too quickly. With homes sitting on the market for months at a time developers are getting antsy and are slashing prices and taking offers they normally wouldn’t.
Why are developers taking such low ball offers? Developers have this thing called carrying costs. It’s essentially the costs associated with owning & building the property. They are bleeding thousands of dollars with interest for each month that they do not sell. Naturally, they do not want to lose anymore more money & that is when you step in to save their day. You see a property you like, we tour it & you submit a serious but amazing offer on your end. You get a deal of a lifetime in an area where appreciation is just starting.
This scenario can be used in all types of markets, WEHO is the perfect example in this very market we are in.
Timothy Rojas
ig: @timrojas
email: tim@timrojas.com