ARGUMENTS FOR SELLING:
1. We've reached another height
2. There are talks of plateauing and possibly even microdips in the market
3. You have amazing equity and can upgrade from the starter pad to a forever home
Words of wisdom when selling: Be patient and smart. You will have to have your home in great shape and priced right with a local realtor who knows what's up in the area.
ARGUMENTS FOR BUYING:
1. Rents are through the roof, and still going up due to high demand and low supply
2. Why pay your landlord's mortgage?
3. Population in LA keeps growing
Words of wisdom when buying: Look at the big picture. Inventory is low, and it's still a seller's market. So bid wisely. Do not nitpick about overbidding 5k here, 5k there. Over a 30 year fixed, that's like $3/mo. And try to be less emotional about the things that can be changed, such as ugly carpets.
Wednesday, August 29, 2018
Thursday, August 16, 2018
When Is It A Good Time to Sell, When Is It A Good Time to Buy?
Everyone can look back in hindsight and say "I should have bought in the crash." Then why did so many people jump ship and short sell in the crash? It's because everyone has different motivations, different circumstances in their lives.
There's no really right answer unless you know for sure where the market is heading, and if we could all predict the future, all of us would be in the 1%.
The best answer to the question of when to sell or buy is when you can afford to, and it's the right property.
If you can afford a house at what we're calling the "height of the market," then you should be fine. Even if the market dips, you can afford the payments (Please people, get a 30 year fixed and you're mortgage is like rent control for 30 years). Some people have bought at the height, but got some amazing interest rates, so they ended up just as good as other buyers who got locked into a higher interest rate at a slightly lower price.
If you're selling because you need to, or you want to upgrade, or you want to cash out on equity and get a better investment, go for it. We're at new heights so if you're looking to sell, then duh, this is the best time. If you're not needing to sell, there's no real reason why you should, and it's not like you're needing the cash right now, then hold onto it. You can always rent the place out for killer rents--just as prices are high, rents are even higher than ever before.
There's no really right answer unless you know for sure where the market is heading, and if we could all predict the future, all of us would be in the 1%.
The best answer to the question of when to sell or buy is when you can afford to, and it's the right property.
If you can afford a house at what we're calling the "height of the market," then you should be fine. Even if the market dips, you can afford the payments (Please people, get a 30 year fixed and you're mortgage is like rent control for 30 years). Some people have bought at the height, but got some amazing interest rates, so they ended up just as good as other buyers who got locked into a higher interest rate at a slightly lower price.
If you're selling because you need to, or you want to upgrade, or you want to cash out on equity and get a better investment, go for it. We're at new heights so if you're looking to sell, then duh, this is the best time. If you're not needing to sell, there's no real reason why you should, and it's not like you're needing the cash right now, then hold onto it. You can always rent the place out for killer rents--just as prices are high, rents are even higher than ever before.
Tuesday, August 7, 2018
Live/Work Lofts in DTLA
Every week I get approached about live/work lofts, especially from artists. The reason is because these artists are getting kicked out of their studios for conversions or having their rents increased by 100%. It's always the same story. And some of these artists aren't having it anymore. They are buying their own spaces in live/work buildings.
The beauty of the live/work situation is that it is multipurpose. The space can often be shared with other artists or entrepreneurs during business hours who are paying you to use part of the space. Think of it like your own coworking space (that you own) or think of it as a duplex, where the other tenant is paying half or more of your mortgage. It's a pretty sweet situation, and best of all, you own the place so you are building equity. This is how you say goodbye to the unstable housing situation and unreasonable rent hikes.
The beauty of the live/work situation is that it is multipurpose. The space can often be shared with other artists or entrepreneurs during business hours who are paying you to use part of the space. Think of it like your own coworking space (that you own) or think of it as a duplex, where the other tenant is paying half or more of your mortgage. It's a pretty sweet situation, and best of all, you own the place so you are building equity. This is how you say goodbye to the unstable housing situation and unreasonable rent hikes.
...And Still A Sellers Market!
Tariffs, weird economic rumblings, cryptos, housing shortage, global warming...what a strange time this is. How does this affect real estate?
Real estate has been interesting in the last 10 years. It was a seller's market (prices going up!), then quickly turned into a buyer's market (prices crashed), and since about 2014, has been a strong seller's market. We're due for a dip (buyer's market!), yet the shortage of housing has been keeping prices high.
It's not helping that a lot of people have found that properties are a good way to grow their money rather than banks. The passive income due to high rents is often too good to pass up. And the Airbnb potential of properties is causing a shortage in rental housing, not just housing to buy.
Forecasts are pointing to a dip in about 2020. Of course nothing's perfectly predictable. But what do we know for sure? It's a Seller's market. Prices have been going up for about 10 years, and if the equity is there, and you're ready to trade up, there's no time like the present.
Real estate has been interesting in the last 10 years. It was a seller's market (prices going up!), then quickly turned into a buyer's market (prices crashed), and since about 2014, has been a strong seller's market. We're due for a dip (buyer's market!), yet the shortage of housing has been keeping prices high.
It's not helping that a lot of people have found that properties are a good way to grow their money rather than banks. The passive income due to high rents is often too good to pass up. And the Airbnb potential of properties is causing a shortage in rental housing, not just housing to buy.
Forecasts are pointing to a dip in about 2020. Of course nothing's perfectly predictable. But what do we know for sure? It's a Seller's market. Prices have been going up for about 10 years, and if the equity is there, and you're ready to trade up, there's no time like the present.
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