Building in Malibu (Oxnard, Bell, Calabasas: fit in, for sale, insurance)

[yellowdoyle]

Hello all. What a crazy forum. I didn't think such a place existed full of discussion about cities, land, population, etc. Pretty cool stuff.

As for my question, I moved to a guest house in Malibu (from Oxnard) about 8 months ago. My gf and I did it for a few reasons: 1) new job in the Malibu/Calabasas area, 2) her horse could live with us on the ranch, and 3) try new things.

After having been here for some time, we like it. I loved Oxnard, but Malibu is closer to my job, has quality beaches (though Oxnard/Ventura is better in my opinion - for surfing), and allows horses and chickens and other animals on property. We have grown fond of living with horses and would like to buy property and develop it.

We are both working class, and would likely try to borrow some money from the parents. So, does anyone have experience dealing with city of Malibu and the CA Coastal Commission when developing land in Malibu? There are several places under 5 acres that can be purchased in the 200k range. I think we could build a 600-800 sf structure for about 175k or so (comments? too high too low?). Location is important, because that will dictate things like well water, city water, septic tanks, electricity hook ups, etc. For something more rural, without a well or septic tank in place, that cost would likely go up.

So we are tentatively at about 375k. I have heard that permit fees can be very significant, and we could be looking at 100k or perhaps more. That is obviously a very significant expense, and needs to be budgeted. One can hire an expeditor to help with the CCC, but I have no experience with that. Like most consultants, I would imagine they aren't cheap.

Thoughts and comments very appreciated. First hand stories even better, if possible!

[impala666]

All the info and contacts are here:-
City of Malibu
But I would check your figures you may have missed three or four zeros.

[DowntownVentura]

I was wondering where one could buy 5 acres for $200,000 in Malibu. I am thinking inland quite a bit in the mountains so the rest of my post assumes that.

You may not have to deal with the California Coastal Commission. Their reach is about 1,000 yards from the high tide mark.

The property may not have any utility access so I would get that all resolved before you purchased. I don't remember the details but Malibu had proposed not allowing septic tanks, at least on new construction.

Fire danger is high so getting fire insurance can be quite expensive. I would check rates first.

Road access can be difficult. Ensure you have deeded right of way to a maintained street.

[VLWH]

Originally Posted by DowntownVentura

I was wondering where one could buy 5 acres for $200,000 in Malibu. I am thinking inland quite a bit in the mountains so the rest of my post assumes that.
You may not have to deal with the California Coastal Commission. Their reach is about 1,000 yards from the high tide mark.

The property may not have any utility access so I would get that all resolved before you purchased. I don't remember the details but Malibu had proposed not allowing septic tanks, at least on new construction.

Fire danger is high so getting fire insurance can be quite expensive. I would check rates first.

Road access can be difficult. Ensure you have deeded right of way to a maintained street.

I think you're correct. If they are planning on horse property, I can't think of any that close to the coast.

[yellowdoyle]

Originally Posted by DowntownVentura

I was wondering where one could buy 5 acres for $200,000 in Malibu. I am thinking inland quite a bit in the mountains so the rest of my post assumes that.

You may not have to deal with the California Coastal Commission. Their reach is about 1,000 yards from the high tide mark.

The property may not have any utility access so I would get that all resolved before you purchased. I don't remember the details but Malibu had proposed not allowing septic tanks, at least on new construction.

Fire danger is high so getting fire insurance can be quite expensive. I would check rates first.

Road access can be difficult. Ensure you have deeded right of way to a maintained street.

5 acres is on the high end. I have seen 2.9 acres for 150k (with ocean views btw), and 4.5 acres for 225k. There are multiple parcels in the 0.5 to 2 acre range that are sub-200k.

The California Coastal Commission has a reach much larger than that. I currently live in the CCC area, and I am off of Kanan about 1 mile on the coastal side of Mulholland. So CCC reaches several thousand feet up from the coastline.

I have heard about the septic tank ban, I believe that is central Malibu near the pier. I am looking for land west of Corral Canyon, which is out of the septic bank area AFAIK.

Great point on the fire insurance. Some of the properties you see for sale have "burn-out foundations" which means a house used to be there . In that case, the property may already have a septic tank and etc, but you can bet fire insurance would not be cheap.

If the city of Malibu would approve it, I would build a more temporary structure like a yurt on the cheap, and just let it burn down, and then rebuild. Rinse and repeat for the rest of my days.

Originally Posted by VLWH

I think you're correct. If they are planning on horse property, I can't think of any that close to the coast.

Parts of the city of Malibu do in fact allow horses. But I am assuming I would have to go unincorporated LA County to be entirely safe with that.

Originally Posted by impala666

All the info and contacts are here:-
City of Malibu
But I would check your figures you may have missed three or four zeros.

I have reviewed the city of Malibu fee schedule. I think for a small single family dwelling it would likely be <50k, but I really should talk to someone in the planning/building department. Unfortunately, that is only Malibu, not the CCC which adds more expense. And to use someone with experience, a consultant which is even more money. Ugh.

I don't think this idea is too realistic, but I would rather explore it and know that is the case, rather than assume it and never be sure. Besides, I don't mind living simply and it may be possible to do something on the cheap (even though that likely means 500k + for a tiny home in a rural part of Malibu).

[yellowdoyle]

Oh, and Downtown Ventura, since I am from Ventura County a much more likely situation is we end up moving back to Ventura. My gf grew up there and misses it. But man, Ventura 2+1's sure are pricey...

[calves2997]

Have you considered Bell Canyon?

There is a home there for sale right now

15 MORGAN Rd, Bell Canyon, CA 91307 | MLS# F1838523

It includes the horse barn and a nice home for 760 asking. More than you are looking to spend right now, but also a much larger home, in a very nice gated community in Calabasas.

[kiph]

Hi there I also have been looking at land in Topanga Canyon and malibu for a few years. I've read the coastal commission's application/fee documentation, as well as the LA County permitting documentation. There is also the LA fire department to consider. They require a 20' paved road and sprinklers among other things. If I ever get around to buying land, I'll try to create a detailed blog about it. I did some construction in college and would like to do most of the interior work myself. I have a crazy goal of building a 2000 - 2500 sq' home for ~450k including land and permits. So please let me know if you ever bought land and how it's going. You can email me at kiphaynes [at] gmail.

Originally Posted by yellowdoyle

Hello all. What a crazy forum. I didn't think such a place existed full of discussion about cities, land, population, etc. Pretty cool stuff.

As for my question, I moved to a guest house in Malibu (from Oxnard) about 8 months ago. My gf and I did it for a few reasons: 1) new job in the Malibu/Calabasas area, 2) her horse could live with us on the ranch, and 3) try new things.

After having been here for some time, we like it. I loved Oxnard, but Malibu is closer to my job, has quality beaches (though Oxnard/Ventura is better in my opinion - for surfing), and allows horses and chickens and other animals on property. We have grown fond of living with horses and would like to buy property and develop it.

We are both working class, and would likely try to borrow some money from the parents. So, does anyone have experience dealing with city of Malibu and the CA Coastal Commission when developing land in Malibu? There are several places under 5 acres that can be purchased in the 200k range. I think we could build a 600-800 sf structure for about 175k or so (comments? too high too low?). Location is important, because that will dictate things like well water, city water, septic tanks, electricity hook ups, etc. For something more rural, without a well or septic tank in place, that cost would likely go up.

So we are tentatively at about 375k. I have heard that permit fees can be very significant, and we could be looking at 100k or perhaps more. That is obviously a very significant expense, and needs to be budgeted. One can hire an expeditor to help with the CCC, but I have no experience with that. Like most consultants, I would imagine they aren't cheap.

Thoughts and comments very appreciated. First hand stories even better, if possible!

[911cedric]

This thread is very old, but i'll try to share my experience.
I am curreny developping 2 new homes in the coastal area of topanga.
Buying land in this area is risky business unless it is already entitled or unless you have a solid local development experience.
Entitlement for a new home in Topanga is about 150k-200k; that includes permits, architect and consultants fees. My architect says about twice that amount for a malibu home.
Timing is now about one year / one uear and half to get the coastal approval but you'll probably need another year of due diligence, design and engineering before that.
Don't even look at steep lots; the construction costs won't make any sense unless adjacent homes sell for 10 millions. You need a lot with utilities as these can run in the 100s thousands to install.
Bottom line, if you find an entitled lot with a flat construction pad and utilities in the malibu or Topanga mountains for 800k that's a smoking deal.
Do the math, a new modern topanga/ malibu home with views and pool sells for minimum of $2500000 these days. A builder will take about 1 million per 3500sqft home in this area, much less if you know your business. That's a $700k profit in 1 year and half(construction + sale) letting the architect and the builder do the job.