Group

1
Group 4House in P.V. vs. House in Diamond Bar

• Jeffery Small - Organizer
• Jon Lerdsuwanrut - Secretary
• David Lopez - Techie
• David Wong - Techie

2
Scenario

• To compare two houses of same initial value for
  investment purposes and to predict different
  factors that can effect its value.
• To buy a bigger house in a lower ranked city or a
  smaller house in a higher ranked city.
• Estimate the rate of return of the two situations.

3
House for Rancho Palos Verdes

• 61 Rockinghorse Road
• Rancho Palos Verdes, CA 90275
• Cost 1.5 Million
• Built in 1966
• No Gated Community
• 4 Bedrooms
• 3.25 Bathrooms
• 23,560 square feet lot size
• 2,864 square feet
• Two Stories
• 2 Car Garage
• View
• Pool

4
House for Diamond Bar

• 2572 Steeplechase Lane
• Diamond Bar, CA 91765
• Cost 1.5 Million
• Gated Community
• The Country
• Built in 1987
• 5 Bedrooms
• 3.5 Bathrooms
• 31500 sq. ft lot size
• 3,876 square feet home
• 3 car garage
• View
• Swimming Pool

5
Past Sales, Assessed, Tax Info for Both Houses

• Rancho Palos Verdes
• Sold on January 11, 1990 for 623,000
• Sold for 217.53 / Sq. Feet
• Assessed Value 857,158
• Land Value 647,069
• Improvement Value 210,089
• Tax Amount 9,373

• Diamond Bar
• Sold on January 22, 1990 for 920,000
• Sold for 237.36 / Sq. Feet
• Assessed Value 1,038,700
• Land Value 461,598
• Improvement Value 577,102
• Tax Amount 11,991

6
Assumptions

• We had 1.5 Million to pay off house
• Rent
• Began at 1000 per Month per Room
• Raised 3 each year
• Property Tax
• Began at 2 of Property Value
• Raised at 2 each year
• Property Insurance
• Began at 2 of House Value
• Raised at 2 each year
• Annual Maintenance
• 1000 per year

7
Estimated Investment Return Based on Market Trends
8
Money Made in Relations to Market Fluctuation and
Time in Market
9
IRR(ROR) in Relations to Market Fluctuation and
Time in Market
10
Conclusion

• In every instance it was found that Palos Verdes
  would be the better investment.
• More stable market
• Better location
• Better reputation as a city
• Will always stay better than average no matter
  what the market fluctuation

11
Resources

• OCtitle.com
• Realtor.com
• LosAngelesAlmanac.com
• Century21.com
• Housevalue.com
• Mercury.com
• dab.nfc.usda.gov/pubs/docs/taxformulas/formulas/st
  atecitycounty/taxca/taxca.html -State tax
  information