Best Place Real Estate

Lake Forest consistently ranks as one of the safest cities in America. According to a survey done by CQ Press City Crime Rankings, Lake Forest is the 8th safest city for cities with populations of 75,000 to 99,999 and 10th safest city overall.

At the time I saw this article in the city’s newsletter, I was reading The Tipping Point by Malcolm Gladwell. If you have not read The Tipping Point, I highly recommend it. In one chapter, Gladwell discusses the “Broken Windows” theory and the sudden drop in crime in New York City that occurred in the 1990’s. In essence, the theory is that if a city does not address seemingly minor problems, such as graffiti, panhandling, and buildings with broken windows, it is giving the impression that no one really cares and that no one is in charge. A city that can’t control minor crimes may give criminals the idea that they have less of a chance of getting caught in that city for more serious crimes. While it seems that concentrating on serious violent crimes is more important, getting control over minor crimes can be the “tipping point” for controlling a city’s crime overall.

It is this theory that is credited for significantly reducing crime in New York City. In about 1994, New York City started to really crack down on minor crimes and the overall crime rate dropped dramatically. (For a more in depth explanation, refer to The Tipping Point.)

As I read the article in The Leaflet, I couldn’t help but think that part of the reason that Lake Forest is consistently one of the safest cities is because our city is clean and well-maintained. In addition, minor crimes such as graffiti are not tolerated. While I can not say that we have no graffiti, I can say that when it occurs, it is removed promptly. (Graffiti Hotline)

Lake Forest never had the severe crime rate that New York once had and I’m not comparing New York and Lake Forest. They are like apples and oranges (excuse the pun) in many ways. But after reading The Tipping Point I think the “Broken Window” theory has merit.

The Arbor in Lake Forest is the place to be this Sunday, May 17.  The City of Lake Forest is sponsoring “Exploration Day in The Arbor: Carnival of Discovery“.  The event is from 1:00 to 6:00 at The Orchard and Prothero Retail Center on El Toro Rd between Rockfield Blvd and Raymond Way.  The fun includes carnival rides, music, family entertainment and much more.

A few of the local service organizations will have information tables at the event.  They will have information on how they serve the community, upcoming events, as well as how to join if you are interested.  I belong to Soroptimist International of Lake Forest and we will have a table at the event. Soroptimist is a women’s service organization with the goal of improving the lives of women and girls both locally and internationally.

Lake Forest is a great place to live!!!  It will be 30 years this April that I have lived here.  The community is safe (see page one of The Leaflet Newsletter, Jan.-Feb 2009), the schools are great, and it is close to just about everything.  According to a recent survey, I’m not the only happy camper.  The survey done in November 2008 found that 92% of residents and 87% of businesses are satisfied with the services provided by the City of Lake Forest ( page 4 of the Jan-Feb 09 Leaflet).  And it keeps getting better.

We now have an excellent variety of restaurants as well as plenty of shopping.  One way our residents can keep Lake Forest such a delightful place is to shop and dine locally.  Doing that not only keeps money in our community and supports local businesses, but also encourages more retail and eateries to consider Lake Forest in their search for new locations.  To get an idea of some of our local establishments, go to www.city-lakeforest.com/shopdinelakeforest.

The steep decline in housing prices has brought investors to the market in full force. Many are buying in the bottom price range of the market. In Orange County that consists of primarily of low to mid-priced condominiums. These homes were hit really hard by the demise of the real estate market. Now we are seeing tons of short sale and bank-owned condominium listings and investors are scooping them up as fast as they can. While many buyers and real estate agents do not want to bother with short sales, bank-owned listings are receiving multiple offers and many of the offers are cash offers. Remember, this is Orange County and despite what you read in the papers about all the job losses and foreclosures, there are still a lot of people here with a lot of money.

The opportunity we have now is that the decline in prices combined with very low interest rates has made single family detached homes possible for many investors who otherwise could only purchase condos. When I make an investment decision, I like to look at the long term and I think that in the long run, a single family home is a better investment than a condo.  Therefore, I believe that the current market is not only an opportunity for investors, it is also an opportunity to make a really good long term investment. Consider these points:

• In many areas, like Lake Forest, Mission Viejo, and Laguna Hills, you can now buy a single family house for about the same price as some of the condos a few years ago. These are generally small entry level homes, but ones that would make excellent rentals.
• While single family detached homes lost value in the market down-turn, they weren’t hit quite as hard as a lot of condos and therefore I think they will recover more quickly.
• When real estate is in an upward cycle, detached houses typically appreciate at a little higher rate than condos. So this is something to look forward to.
• Interest rates. What an opportunity, low prices and low interest rates! You must be able to qualify for the loan and provide documentation supporting your income and assets, but it should have been that way all along.
• Again, looking into the long term, when the market does turn around, we will probably reach a point where first time buyers will again be priced out of the market. (History has a way of repeating itself.) This will keep the rental market strong and I think single family houses will be more appealing to families than condos.
• As I mentioned above, investors are all over the bank-owned condos, particularly in the lower priced complexes. This could be a potential problem down the line. Lenders do not like to make loans in complexes that have a high percentage of absentee owners. Therefore, units in these complexes may be harder to sell in a few years because it may be difficult for buyers to get financing.

Please note that I am not suggesting that condos are a bad investment. They can actually be very lucrative. What I am suggesting is that the current market has given us other opportunities to consider.  As with any investment, you need to do the research and do the math, and I suggest doing it for both the short term and the long term.

“Lake Forest Rocks on the 4th“.  That’s the theme of this year’s 4th of July Parade put on by the City of Lake Forest.  The Parade is the City’s biggest annual event and it gets better every year.  I volunteer on the Parade Committee and I think The Parade will be extra fun this year.  The Parade begins at the intersection of Toledo and Ridge Route and then goes up Lake Forest Drive to Serrano Road.  It starts at 10AM, but it is best to get there early.  Enjoy the Parade and then have a fun and safe 4th of July!

If you have a question for the City of Lake Forest or need to report a problem, go to GovPopulous.  This system has proven to be very effective because our City Manager not only reads all inputs but also holds his staff accountable for responding to all of them.

Periodically the City conducts a Resident and Business Satisfaction survey.  The last one was done in 2006.  Overall, the rate of satisfaction by residents for City services was 91% and for quality of life was 95%.  For businesses, the overall rate of satisfaction for City services was 86% and 79% of the businesses rated the business climate in Lake Forest as excellent or good.  And the City is constantly working to be even better.  GovPopulous is another way the City keeps in touch with the needs of its residents and businesses.  To use GovPopulous, go to: www.city-lakeforest.com/govpopulous.

Yes, we have them.  They are in Heritage Hill Historical Park on the corner of Lake Forest and Serrano.  Along with the Serrano Adobe (1863) and the Harvey Bennett Ranch House (1908) is El Toro’s first church, St. George’s Episcopal Mission (1891), and the first schoolhouse, the El Toro Grammar School (1890).

Come celebrate our local history at Rancho Days Fiesta at Heritage Hill this Saturday, May 17.  It is fun for the whole family and an opportunity to visit Lake Forest’s old historical homes.

Now is your chance to be in the annual Lake Forest 4th of July parade!  This year the theme is “Lake Forest Rocks on the 4th” and there is still time to enter to participate.  Entry forms need to be submitted to City Hall by June 6, 2008.

Volunteering on the Parade Committee is another great way to participate.  I have done it for about five years and it is a fun way to give back to the community.  The committee works with The City to plan and organized the parade.  We are always looking for more volunteers, so if you are interested, come to our next meeting, this Monday, May 12th at City Hall, 25550 Commercentre Drive (off Bake).  We meet at 6PM and a light dinner is served.  Come and see what it is all about.

Lake Forest is now a host city for bluebird nesting boxes.  I just read this in The Mainsheet, which is the monthly publication of the Lake Forest II Master Homeoners Association.  The article reported that bluebird boxes will be hung in trees in some of the City’s parks.  I love the idea of helping the bluebird population and even more so that the City of Lake Forest has agreed to host the boxes for the Southern California Bluebird Club.

I was showing property the other day to a young man who is moving from North Orange County.  He wanted to see condos for sale in Lake Forest and Laguna Hills.  While we were out looking, he told me that a few years ago he would not have even considered Lake Forest.  But now with The Arbor on El Toro and all the great dining and shopping available in the City, he would love to live in Lake Forest.  I myself have noticed that people are now coming to Lake Forest specifically for the new restaurants and shopping.  My personal favorites in The Arbor are Boneheads and Home Goods.  We are now a “destination” city!

They City is having an Opening Celebration this Saturday, April 19, from 11:00 to 4:oo at The Arbor on El Toro.  Come join the fun and see for yourself how far Lake Forest has come.