There is a big stinking elephant in the room that I want to point out...and he ain't hiding.
Most people with the dream of homeownership think that credit, or down payment, interest rate, 30 year fixed, adjusted rate mortgages, a buyers market, sellers market, the economy, or not watching enough HGTV are the biggest obstacles to buying a home.
Whatever is your perceived obstacle to getting there may be, it is probably not as important as this obvious fact.
See, the most important factor to getting a beneficial mortgage payment and rate is your ability to pay. The banks want to know that they will get paid back.
I know the glitz and glam of Hollywood will make you think otherwise, but many people fail realize that Los Angeles is a couples town, or at least when it pertains to real estate.
I call it a "couples town" because you need at least 2 incomes to afford a house here. Many of my potential clients think that since they have "good credit" and a "good job" that it will be enough, and 9 times out of 10... it ain't.
A family of 4 living off an income of $80k a year is considered low income in Los Angeles. The median home value in Los Angeles is $626,800. Los Angeles home values have gone up 8.5% over the past year and Zillow predicts they will rise 1.3% within the next year.You have probably seen 0% down payment or "no money down" loans advertised pretty frequetly. Well, let's put some numbers with that. So if you bought a $626k house with 0% down, the monthly mortgage will be $2,980 and with a 3% down payment you will pay about $100 cheaper at $2,891. Now how many single people out here are paying $1500 a month in an apartment?
2 is the magic number, you See?
I'm not suggesting you get out here and buy a $600k house. There are still homes in the mid to high $300k range, but if you bought a $400k home your payment will be about $1800 a month and I know most single people are paying at least $900 for a 1 bedroom. Doing a little adding, 2 people paying $900 a month could afford that, am I wrong?
Now since we are talking numbers, let's go over a few more for perspective.
Now remember, Los Angeles home values have gone up 8.5% over the past year and Zillow predicts they will rise 1.3% within the next year.
So had you bought a $400k house last year, you would have gained $34k in equity by now and would be looking to add another $5200 going into next year.
That is almost 10% equity for doing nothing... well, for making a great decision. How many investments do you have bringing you almost 10% a year? You get it now? One plus one, equals 2 people gaining equity.
If any of this makes since to you, we should talk. If you are confused about my fuzzy math, we should talk.
If you don't believe any of this information, I welcome your criticisms or concerns. P.S. I'm also available for hire on weekends as a punching bag for those that hate salesman and do gooders...
