Some of the old-timers in L.A. might
remember Victor and his father’s traditional landmark cigar factory in
downtown L.A., La Plata Cigars established in 1947, where the finest cigars
were made by Cubans. We first met Victor when we read about La Plata in
the L.A. Times, and a group of us took a field trip into downtown L.A. to visit. What a place! The walk-in humidor was
amazing, and it was quite educational to watch his workers roll cigars.
Victor is also known around town as a
drummer in several bands. notably Dance Hall Pimps, but these days he pays
his bills as a realtor.
Victor Migenes is an old-school
hard-working realtor in Northeast Los Angeles. We meet at the Old L.A.
Farmers Market on Marmion Way one Tuesday, and over some excellent non-GMO
tamales, we discussed the local real estate market, mostly for my edification.
Migenes, who works for Keller-Williams
Realty and Property Concierges Brokerage, points out that the Northeast
L.A. market has changed considerably over the past several years, a point which
has also been an issue of controversy.
He points out that buying into Highland
Park was a bit cheaper than buying, for example, in Los Feliz or Silver
Lake, and younger executives moved in over the past several years,
purchased Craftsmen homes and bungalows, and renovated them. Some were
just flippers, but many came to stay. The trend, which has occurred in
many U.S. cities, is called Gentrification.
The word “gentrification” means different
things to different people, depending on whether you are a renter, a buyer, a
seller, or someone who has lived in the neighborhood for generations.
“Remember,” says Migenes, “that many of
the younger executives from the entertainment industry saw Highland Park
and the overall Northeast as an affordable beginning of home
ownership. They felt priced-out of Silverlake and the more popular areas,
and they moved to Highland Park and began fixing things up.”
He’s empathetic towards those who have
been displaced by the changes that have occurred. Still, Migenes, as a
realtor, works to help people sell their homes, or to buy the best possible
home. His job is to help buyers and sellers avoid the many pitfalls that can
occur during the buy and sell process.
He points out that you can buy a house in
Texas for about $240,000, and a similar house here will cost you about
$800,000! “Why?” I ask. “Because everyone wants to live here. It’s
all about demand that drives up the price,” he tells me.
“The entertainment industry has
changed, and continues to grow in our area. Fewer young
executives are buying into Hollywood unless they have some attachment to
that area, and the entertainment industry is today more focused in Glendale and
Burbank,” he says. And the Northeast is regarded as a more affordable
segue to home ownership.
His advice to buyers is to consult with a
good realtor, and to get to know the individual character of the
neighborhoods. Even if the prices seem to be on the higher end, Migenes believes
that most of the neighborhoods have improved for the better in the Northeast.
“Still, even though it’s a sellers market
today and the prices seem to be on the high end, the buyer should be very picky
about where to buy. You have to consider how long you want to be
there. For those who intend to stay, and be a part of the neighborhood,
your home values are going to rise over the long run of say the next 10
years.”
Areas that seem to be over-priced, where
there is a lot of renovation both in residential and commerce growth, are the
very areas that will maintain or increase in value over time, advised
Migenes.
“There are still pockets here and there
that I would avoid,” adds Migenes, and that’s the sort of thing that you can
find out by asking around.
I told Migenes about real estate
predictions that I’d read about on line, mostly from people who were selling a
financial newsletter. “Subscribe to our
newsletter and you’ll survive the financial collapse of western civilizatioin” seemed
to be their selling point.
Migenes smiled, and said, “We do not have
a crystal ball. Some actually thought that there would be a minor crash two
years ago in the housing market, but that didn’t happen, largely because of the
maintaining of low interest rates by the Federal Reserve. But at some
point, there is an adjustment. It always happens. When it becomes a
buyers’ market, in the wave of time, the prices may dip or level off.
That always happens in a changing market. So if you need to buy, you need to
buy smart. And over the long term, you will earn some good equity.”
As for advice for those who need to sell,
Migenes says that if you have a well-maintained, but older house in good
condition, paint goes a long way. “By that, I mean professional painting.
But don’t make it personal. Do neutral tones so the next buyer can
visualize more readily how they may want to personalize it later.
He does not recommend renovations of
bathrooms or kitchens, since it may be more money than you’ll get back from
that work, and you don’t really know what the buyer may want.
Instead, Migenes advises sellers to make sure the plumbing and electrical
systems are sound.
Landscaping can also add a good appeal to
the house you are trying to sell, but keep it simple.
[Victor Migenes can be reached
at (213) 718-3558.]
[Nyerges is the director of the School
of Self-Reliance, and author of books on self-reliance. He can be reached at
www.SchoolofSelf-Reliance.com]
