Currently, the Better Bet is on Buying Instead of Renting

If you're in a rent controlled apartment and you're paying about $1/sf, then you should probably stay put. You might still want to buy an investment, but you really should keep your apartment because $1/sf is too good to throw away.

However, if you're renting somewhere around $3/sf, which is about $3000 for a 1000sf pad, then it might be a better bet buy while interest rates are still at historic lows. Reasons why:

1. Interest rates are expected to hike up at least twice in 2017, then again in 2018. I don't think we'll be going into the 5% arena but it could go up to about 4.65% for a SFR.

2. If you're in a rent-controlled building, then the Landlord can hike up rents 2-3% per year. If you're in a non-rent controlled building, then the Landlord can raise the rents to whatever the market rate is after your lease is up.

3. If you get a 30-year fixed mortgage, then your "rent" is fixed for 30 years. Duh.

4. Rents are so high in LA right now, that if you ever decide to keep the home and rent it out, it's likely that someone else's rent money will pay for your mortgage. No brainer.

Buy, Sell or Hold?

Downtown (and LA in general) prices are up, per usual, inventory is low, and it's a Seller's market. Prices have well surpassed the 2007 height, and are now beginning to stabilize due to the holidays.

So what to do, BUY, SELL or HOLD?

Assuming you have equity, if you need the cash to upgrade, relocate or just to have liquid for whatever, SELL. It's a good time because prices are higher than ever before and buyers are pent up because inventory has been low for at least 12 months.

If you're buying to invest in the short term, don't. If you're buying to invest in the long term, then BUY. Prices are high, but they are going to be stabilizing into next year, so if you're planning on holding for a while (5-7 years) or you're sick of renting (I predict rental prices will continue to increase again next year in DTLA), then BUY. Why pay a landlord when you can pay yourself while gaining equity?

If you are not planning to do anything with the equity money, then HOLD. DTLA is getting lots of good investment in terms of qualified resident buyers, businesses looking to expand, companies relocating, and developers that are looking to be in one of the most unique parts of LA (e.g. The Row, At Mateo, Oceanwide Plaza). This will only help continued growth and revitalization.

Get an Art Deco Pied a Terre Before The May Co. Building is Completed - Eastern Columbia #202

The jewel of downtown, Eastern Columbia, has a new unit available for sale. #202 offers concrete floors, stainless steel kitchen appliances, bathroom designed by Kelly Wearstler. The building features a rooftop pool, front desk security, courtyard, gym. Price have been consistently rising with the recent addition of the Ace Hotel, Acne, Tanner Goods, Oak, Aesop, Om Nom Organics, Il Cafe, Urban Outfitters, APC, and soon to arrive just steps away is the revamped May Company Building (to be creative office space, retail, etc.), Clifton's, Big Gay Ice Cream, Case Hotel,  Empire Hotel, and more. 1150sf, 1 parking space. Faces historic Broadway. Asking $790k.

SOLD - Art Deco Stunner with Balcony for Sale - Eastern Columbia #809

This is spacious west-facing unit in the Art Deco Eastern Columbia building, developed by The Kor Group. The unit features soaring ceilings with tall banks of windows, polished concrete floors and city views. Boasts one of the few balconies in the entire building. Comes with 1 parking space, and building amenities include a 24-hour concierge, gym and fabulous rooftop pool. Walkable to Spring Street, Ace Hotel, Umami, Figaro, Alma, Pellicola, Sparkle Factory, Grand Central Market, and more. Listed for $628k with 1100sf of space. This building is also Mills Act approved.

SOLD ABOVE ASKING - Artists' Multi-level Live/Work for Sale - Barker Block, #248

True live/work loft for lease in the Barker Block building. Designed by the KOR Group, the building boasts a lovely rooftop pool and gym--both with views for miles, courtyard areas and an art exhibition tunnel. Plus it's directly across the street from Urth Cafe, perfect for that morning coffee run. The loft is a particularly large 1 bedroom floorplan and features a mix of concrete and dark hardwood floors and beams, gourmet kitchen and designer finishes in the bathroom. Listed at $459k for 977 sf of livable, workable space.

SOLD ABOVE ASKING - True Warehouse Loft for Sale - Toy Factory #312

Gorgeous north-facing loft with soaring ceilings in the heart of the Arts District. This stylish live/work loft features polished concrete floors, upgrades that include polished concrete floors and a custom-built room enclosure. The building boasts a rooftop pool and gym--both with views for miles, lower rooftop courtyard and a full gym. Located across the street from Church & State, Daily Dose, Pour Haus, Little Bear, Urban Radish, and just a couple blocks from Bestia, Stumptown, Bread Lounge, Handsome Coffee, Factory Kitchen, etc. This pristine loft features designer finishes throughout, 20ft ceilings and great natural light from massive windows. Listed at $585k for 1225sf of space. Has 1 bath and 1 parking space.

SOLD ABOVE ASKING - Tri-Level Uber Chic Loft with Private Patio for Sale - Barker Block #152

True live/work loft for sale in the coveted Barker Block building. Designed by The KOR Group, the building boasts a lovely rooftop pool and gym--both with views for miles, courtyard areas and an art exhibition tunnel. Plus it's directly across the street from Urth Cafe, perfect for that morning coffee run. The tri-level loft features multiple entryways that open up to spaces that can be used as offices, bedrooms, studios--anything you can imagine. Lovely upgrades such as sliding barn doors, custom cabinetry and hardware, and polished concrete floors. 2 bedrooms, multiple office areas, separate entryways, 2 bathrooms, private patio. Listed at $849k for 2370 sf of livable, workable space.

SOLD - L-Shaped Corner Loft in Historic Core for Sale - Rowan #1111

Beautiful loft in the historic Old Bank District. This unique L-shaped loft faces South-East and is covered in large windows all around the perimeter. Includes original exposed brick walls, high ceilings, and genuine hardwood flooring. Building amenities include a spa, outdoor deck, lounge, and Spring Street Park is just next door. This is a Mills Act Building which provides significant property tax savings. 1 bed, 1 bath, 930sf, and optional parking spaces. Offered at $509k.

SOLD - Airy Artists District Loft with City Views for Sale - Biscuit Co. #410

Original exposed brick and blond wood floors about in this fabulous home at the Biscuit Company Lofts. Features 975sf of open space, but the unique layout makes it feel larger. Views for miles through the huge banks of windows and an airy feel throughout from the 16' ceilings. The unique comes with a parking space as well as a deeded storage unit. The historic building has the coveted Mills Act distinction for significant property tax savings and has a fitness center, amazing infinity pool with outdoor deck area, 24-hour front desk security and covered in-building parking. Walkable amenities include Urban Radish local grocer, Toy Factory Grocer, Church and State bistro, Pour Haus wine bar, Daily Dose coffee, Handsome Coffee, Little Bear, Urth Cafe, Stumptown coffee, and more. 1 bed, 1 bath, 975sf. Offered at $549k.

SOLD - Stunning Views to Santa Monica and Beyond for Sale - 1100 Wilshire #1802

Gorgeous corner unit in the amazing 1100 Wilshire live/work building. This unit has amazing panoramic views, from every angle, 2 bedrooms, 2 bathrooms, and 1600 square feet of livable space. Built in 1986, the one-time office building is now known for it's stunning pool and deck, views to the ocean from the southwest units, ample parking for residents and guests, and a 24-hour concierge. Comes with 2 parking spaces and a private storage unit. $998k.

SOLD - Stylish 2-Story Live/Work Loft for Sale - Barker Block #137

Stylish live/work loft for sale in the Barker Block building. Designed by the KOR Group, the building boasts a rooftop pool and gym--both with views for miles, courtyard areas and an art exhibition tunnel. Plus it's directly across the street from Urth Cafe, perfect for that morning coffee run. This pristine loft features designer finishes throughout, 20ft ceilings and great natural light from massive windows. Listed at $786k for 2 beds, 2 baths, 2 parking spaces, and 1850sf of space.

SOLD - Live/Work Character Arts District Loft for Sale - Molino, #214

Gorgeous live/work space with authentic details intact. Located in a prime pocket of the Arts District, this spacious unit features 2 bedrooms, 2 bathrooms, upgraded chef's kitchen, and beautiful original wood and brick details. Comes with 1 parking space, over 2400sf of living space and building amenities include a gym and pool. Listed for $775k

SOLD - Luxe Living in the Arts District for Sale - 940 E. 2nd St. #6

Built in 1906 and completely remodeled and refinished in 2011, the 940 E. 2nd St. Lofts are not your usual Arts District dwellings. They're more like townhouses that happen to look like amazing lofts. Architecturally remastered by The Borman Group, the 38-unit community is a prime example of quality and style. What you get is lots of original brick with steel and light. There's a stunning 3-level home with 2 beds, 2.5 baths and private courtyard patio, 2650sf, available at $1,250,000.

LEASED ABOVE ASKING - Art Deco Gem for Lease - Eastern Columbia, #512

The Eastern Columbia building is one of the most adored buildings in downtown. The stunning 1930s art deco masterpiece features the iconic clock tower and bluish patina on the exterior, with a beautifully rehabbed interior by The KOR Group. Being one of the few, Mills Act-approved buildings, you'll also save on property taxes. Currently there's a 2-bed, 2 bath, 1770sf property available at $3000/mo on a month-to-month lease.

Courtesy of Ted Trentman, Keller Williams Pasadena