Have you ever thought of living in Malibu? It is a well-known city for its homes worth millions because of its amazing beachfront views, safe neighbourhoods and stunning architecture. Due to these reasons, Malibu properties directly on the beachfront tend to be very expensive. That being said, properties situated directly on the beachfront make up some of the expensive properties in the city, with prices going as high as above €100 million while lower prices are as low as €1 million. On the contrary, a large portion of Malibu not on the beachfront is undeveloped, hence selling undeveloped properties. Despite having attractive homes on the beachfront, the undeveloped properties decrease the attractiveness of Malibu. Therefore, Malibu has something for everyone. The overall cost of properties and living in Malibu is not too high compared to other cities.
According to Michele Tecchia, realtor in Monaco, looking into Monte Carlo, as it is situated at the base of the Southern Alps and borders the Mediterranean, it has pleasant weather to attract property investment. Additionally, the city is a luxury destination with nice culture and lifestyle, making its property market one of the most expensive around the globe. Purchasing a square meter in the city goes for over €47,000. The most popular properties are those with a buying price of €5 million, while those over €10 million make up fewer sales. This makes the cost of living here go up.
Because of various reasons, people in one of these cities live better due to the lower cost of living brought about by the fair cost of properties compared to the other. This article aims to compare the real estate market of the two cities; at the end, we will be able to identify where you’d live a better life.
Michele Tecchia : Pros and Cons of both Cities
The pros and cons of a place greatly affect the state of the real estate market and will help you to consider which among them is better to live in.
Advantages of Monaco
- It has pleasant weather all year round. Generally, the city receives sunshine for 300 days a year. Its summers are clear and warm, while the rest of the days are mild enough to enjoy the fresh air. This is the perfect climate for most people, which makes it favour property investment.
- Excellent lifestyle. The city is among the places in the world with exceptional lifestyles since you’re surrounded by luxury. It has two harbours that host some spectacular superyachts, which you can enjoy by renting. It also contains some famous casinos in Monte Carlo for high rollers. You can spend time at the golf course or the beach for outdoor activities.
- It is easily accessible. You can get to the city by air or water, which makes it convenient to access. This makes it a preferred city to live in because you can easily travel to different destinations, which in turn boosts the growth of properties.
- It is the safest physically and financially. This city is considered one of the safest in the world, both physically and financially. A third of the population in the city are millionaires, which means that people and assets here are guarded very well. Its “safe haven” status makes it an attractive site for investors.
- Taxation. This city’s personal tax policies are lenient compared to other nations, which makes it favourable to residents and attracts property investors. A true story about this city is that no personal income tax has been levied on residents since 1869.
Disadvantages, according to Michele Tecchia
- The city is really small, explains Michele Tecchia. It is among the smallest cities worldwide, covering only 2.1 square kilometres. This makes it densely populated, with 19,009 inhabitants occupying a square km making most people live in apartments. According to Michele Tecchia, a property investor in the city, “Getting a listing with accurate location, plan and price, in the city whether you’re buying or selling a home is already a challenge and will become more challenging in the coming days.”
- Its property prices are among the highest in the world. Properties in this city are very costly. This might be because there are few properties available for purchase.
Advantages of Malibu
- Affordability. The cost of housing should not consume too much of your income. That is why living in Malibu is a good idea, as you can get a house you’re capable of paying for, be it a rental or a home to buy.
- Low poverty rate. Malibu has an overall low poverty rate compared to other cities in the United States. Therefore, investors have a good chance to invest in different properties in this city as many people can afford them.
- High crime rates. Many crime cases have been reported in Malibu. This city’s two common kinds of crimes are violent and property crimes, such as theft and arson. This is one of the factors that can keep investors away.
- Harsh weather conditions. Most places in the US experience extreme weather conditions, especially during winter. Many properties are at a greater risk of getting damaged by floods due to heavy rainfall in the United States and Malibu. According to research, approximately 1,460 homes making up 21% of the homes in this city, are already at risk due to floods.
- High taxes. High taxation of goods is experienced in Malibu. This increases the overall high cost of living by a certain degree.
Comparing the Real Estate in these two cities
From the pros and cons of both cities we have gone through above, it is easy to tell each market’s state. Monaco’s market is among the most expensive globally. On the other hand, the price in Malibu depends on where a rela estate is located. Either on the beachfront or in other areas. The beachfront properties are among the most expensive in Malibu, while properties not near the coast are lower in price. “No city compares to this when it comes to luxury real estate.” Explains Michele Tecchia. This makes life in Malibu better as the cost of living is lower than that of the other city.
Michele Tecchia : “The Monaco real estate market was predicted to resume with powerful growth in 2022 following a downturn in 2020 due to the COVID-19 pandemic”. So far, the average price of properties in this city has crossed the threshold of €50, 000 per square metre. This is an increase of 9% from 2020. This is also the case in Malibu, where home prices have gone up by 75.3% in 2022 compared to 2021 despite its disadvantages.
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