Beacon Bay Newport Beach Land Lease
Posted by Sam Smith on Wednesday, October 10th, 2018 at 3:12pm.
Beacon Bay is one of the premier bay front communities in Newport Beach with many homes located near a sandy beach that's located in this upscale neighborhood. One thing that many don't realize is that homes in this community are under lease land. Beacon Bay is an area that is included in the city of Newport Beach Tidelands which requires the new owner of the property to sign a 50 year lease of the land with the city. The annual lease price is based off the final sales price of the home and calculated at 2.5% of the purchase price. This is paid on a monthly basis with annual CPI adjustments as well. One of the stipulations is that you cannot purchase the land under which the property sits on. We have copies of this lease agreement which is currently 32 pages long and is a formal contract between the new homeowner and the city of Newport Beach.
Real Estate prices in Beacon Bay currently run from $1,750,000 to over $10 million dollars. So a home sold for $1,700,000 then annual lease land price would be $42,500. Break this down over 12 months and the monthly rent amount would be $3,541.66 a month. This amount would be on top of property taxes which are always 1% of the purchase price paid to the state of California plus any local city taxes. This can be a lot of money that doesn't include any monthly mortgage amounts if you are going to be getting a loan. Bottom line is that this is a great place to live but make sure you do your due diligence and understand all the costs associated with living here.
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