tag:blogger.com,1999:blog-56347044398974884552024-03-12T16:31:35.525-07:00West Los Angeles Real EstateRandy Kirkhttp://www.blogger.com/profile/07187149342560881341noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-5634704439897488455.post-41676126925736390372017-07-05T11:32:00.001-07:002017-07-05T11:32:41.091-07:00Los Angeles World Class City – Ranked #1 for Investment - #1 for Tourism - #1 Period
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<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh2UUt2s7-0bUmaDF1HAp7FA57mJljO8l-ZePQ6Lfi4hPR_i3v7-MEMhiSn9q1ke0aVqieVbA_19BZKCYQg0CryxJJ4p_aWRLzKhrBw4mf_kzBlgLXhuo5dNkl74fuFAzBsZE4NEJsx_Zo/s1600/Screen+Shot+2017-07-05+at+11.05.21+AM.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="414" data-original-width="618" height="267" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh2UUt2s7-0bUmaDF1HAp7FA57mJljO8l-ZePQ6Lfi4hPR_i3v7-MEMhiSn9q1ke0aVqieVbA_19BZKCYQg0CryxJJ4p_aWRLzKhrBw4mf_kzBlgLXhuo5dNkl74fuFAzBsZE4NEJsx_Zo/s400/Screen+Shot+2017-07-05+at+11.05.21+AM.png" width="400" /></a></div>
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Why Has Los Angeles Finally Emerged as the World's Most Important City</h2>
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It isn’t clear why it has taken so long for Los Angeles to
be seen as the crown jewel of the world’s cities. LA isn’t exactly shy. Most of
the elites of the world come here to play, if not to live. Why have cities like
London, Paris, NY, Hong Kong or Bejing grabbed all the attention. </div>
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Could it be that Los Angeles is “newish,” on the world
stage? Might it be that with the LA image dominated by the movie and leisure
industries, it was hard to take the region seriously? Possibly the urban sprawl kept LA from having a skyline or a true downtown.</div>
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What might easier to figure out is why LA has emerged in the last
decade to grab the crown. What has happened to this massive urban complex that reaches
from Westlake and Simi to San Juan Capistrano and from Santa Monica to
Riverside over the past 10 years is revolutionary. We aren’t alone. Dallas/Ft
Worth, Houston, Nashville, Charlotte, Atlanta, and Miami are undergoing similar
transformations, but LA had a huge head start and the story is just plain
bigger in every dimension. </div>
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<b style="mso-bidi-font-weight: normal;">They Come to Play</b></div>
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Southern California has always had the rest of planet earth
lapped when it comes to ways to play, and there can be no doubt that this
magnate is still affecting the massive influx of business and people into the
area. While the population may not be growing as fast as some cities or urban
megaplexes, the issue is about space to build, cost of living, and regulations
inhibiting residential construction. </div>
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What is happening is that the population influx consists of
middle class and upper middle class workers in media and hi tech. The
outmigration is in workers with lower paid skills fleeing to less expensive
Texas and Phoenix. </div>
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It might seem obvious and boring to list them, but truly no
other city has the combination of natural playgrounds like outstanding ocean
beaches, mountains, forests, and deserts, combined with man-made lakes, parks, and
trails for walking, running, biking, and offroading. When combined with 300
days of sunshine and temperatures averaging 70 pretty much year-round with low
humidity, the play factor is unparalleled. </div>
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What has changed in the last decade about play? The
facilities just keep getting better. The ocean is cleaner. Smog is basically a
non-issue. </div>
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<b style="mso-bidi-font-weight: normal;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh0xzeViauejSAh0GGy9Au3LLocY_2taoAMv2y7X1xyGZuGr5SZXJBgPupMT4TMo_4zMgITTUMdhpaXU8BWHQPPc8ug1xVdXe1J-DXp_tsM8gNdLDGhFwOy3f9vM0dOuvCnVLgacNsdRzs/s1600/Screen+Shot+2017-07-05+at+11.26.10+AM.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="449" data-original-width="621" height="287" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh0xzeViauejSAh0GGy9Au3LLocY_2taoAMv2y7X1xyGZuGr5SZXJBgPupMT4TMo_4zMgITTUMdhpaXU8BWHQPPc8ug1xVdXe1J-DXp_tsM8gNdLDGhFwOy3f9vM0dOuvCnVLgacNsdRzs/s400/Screen+Shot+2017-07-05+at+11.26.10+AM.png" width="400" /></a></b></div>
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<b style="mso-bidi-font-weight: normal;">They Come to Visit</b></div>
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Statistics are a funny thing. Los Angeles doesn’t make the
top of any lists on total tourists visiting the area. But something seems wrong
with that. Anyone who has lived in SoCal for more than a few years will have
noticed that the freeways are no longer empty in summer. Twenty years ago commuters
looked forward to a steady thinning of the traffic starting around April and
not picking back up until school started. Not anymore!</div>
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Now the freeways are packed in Summer, and not just during
rush hours. It took a little digging to figure out how LA could have fewer
tourists than London or Paris, but as it turns out, the race isn’t even close.
Southern California sees far more tourists than any other area in the world. </div>
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The statistical issue was primarily due to Anaheim. If you
look at nights stayed in Los Angeles (the city), LA is not #1 for tourists. But
if you look at the region, the LA area wins, hands down. If you use other
measures than nights stayed, even the city of LA will take the prize. Most who
come to the region and stay in accommodations outside the city in Santa Monica,
Long Beach, Anaheim, or Pasadena, visit many of the attractions in the City of
Los Angeles. </div>
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<b style="mso-bidi-font-weight: normal;">They Come to Learn</b></div>
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A recent <a href="http://www.expatforum.com/america/los-angeles-named-as-best-city-in-the-world-for-investment.html">Schroders
Global City Index 30</a> ranks LA as the best city in the world for investment.
LA has ranked high in the past, but Schroders decided to make a minor change in
the way they evaluated cities. They added educational facilities. It has become
obvious that world class cities need world class universities to feed the hi
tech work force in modern urban centers. </div>
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No city in the world can claim to providing a better
University system than Los Angeles. With over 70 colleges and universities, and
a similar number of smaller schools and local junior colleges, the availability
for business to tap into these resources is immense. </div>
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<b style="mso-bidi-font-weight: normal;">They Come to Earn</b></div>
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A huge shift of the last decade has been the recognition by
the tech companies of their need for entertainment content. The combination of
this need and the need for college educated workers has turned the LA basin
into a destination for major internet companies. In particular the Silicon
Beach area between Santa Monica and Manhattan Beach, and 10 fwy and Wilshire
Blvd corridors between Silicon Beach and Downtown LA (DTLA) have seen huge
influxes of major headquarters and facilities including Google, Microsoft,
YouTube, Facebook, Snapchat, and many others. </div>
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With these have come thousands of startups to service these
larger companies and their employees. The entire region has enjoyed (or not) a
gentrification of old neighborhoods like Santa Monica, DTLA, Venice, and Mar
Vista, into resplendent hip neighborhoods. DTLA is unrecognizable. Twenty years
ago it was shabby and unwalkable. Now most of the neighborhoods in the central
city are revitalized and safe to walk, even at night. </div>
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<b style="mso-bidi-font-weight: normal;">They Come to Mature</b></div>
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While LA has been recognized for decades as the place where
new culture starts, many would also say that it was the headquarters of the
vast cultural wasteland. Unsurprisingly for a city of this size, LA has had
excellent museums, theater venues, and other evidences of culture. But no one
would have compared Los Angeles to NY or Paris on the culture scale. </div>
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What a difference a decade or so makes. Starting with the
museums, just the massive Getty undertaking alone moved LA into the running for
cultural capital of the world. More recently the arts district in DTLA has
added one amazing museum after another, topped by the Broad and MOCA’s Geffen,
the story gets way interesting. Now add in the massive upgrades and additions
to LACMA and the complete renovation of the Huntington Library. Finally, there
are 100’s of smaller museums including the Getty Villa, The Pasadena Museum of
California Art, and the Fowler. Almost every small city has a museum dealing
with the local culture. </div>
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Then there is music. There should be no surprise that the
city would venerate music, but because the city is so huge, there has never
been a concentration of music venues. Even today it can be hard to search the
web and find the offerings of chamber music, symphony, opera, light opera, and
classical jazz that are being played all over the city. Their marketing could
use some help. But the reality is that there is music everywhere if you can
find it. And nowhere else can you find the number of venues offering the up and
coming singers and bands. If many new talents head to Nashville or New Orleans,
many more are already here or come here. </div>
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Whatever your taste in music, it is playing in LA if you
take the time to track it down. </div>
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<b style="mso-bidi-font-weight: normal;">They Come to Watch</b></div>
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LA has always been a great sports town with UCLA basketball,
USC football, and Dodgers baseball all iconic symbols of their sports. But with
a new football stadium and possibly a new hockey stadium coming to Inglewood,
SoCal may be able to lay claim to being the sports capital of the world. </div>
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The stadiums alone will speak to that positioning. The Rose
Bowl, The Coliseum, Dodger Stadium in Chaves Ravine, The Forum, The Staples
Center, and the new Ram’s stadium, not to mention Stub Hub Stadium, the Honda
Center, and Angels Stadium would clearly make the Southland the metro area with
the most major stadiums in the world. </div>
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With two Major League teams in baseball, basketball,
football, and hockey, LA ties NYC for the most franchises, but when you add USC
and UCLA as there is no doubt that Los Angeles gets the overall crown. Soccer?
LA will have two teams as of 2018.</div>
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<b style="mso-bidi-font-weight: normal;">They Come to Complain</b></div>
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So what would keep LA from the top slot of cities anywhere
on earth? The traffic? Have you tried to drive in NYC or London? The prices? LA
is still cheaper than any of the other world class cities. The Crime? It is a
little known fact, but current crime levels in Los Angeles are similar to the
1950’s. </div>
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The biggest issue – there are just too many people. This
reminds one of the Yogi Berra quip – “<span style="font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">No one goes there nowadays, it’s too
crowded.”</span></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Investment
Opportunities</span></b></div>
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<span style="font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">As noted above, LA is ranked as the number one city in the
world for investment. If you are considering buying a home, condo, duplex,
small apartment building, or any other type of <a href="http://westla-realestate.com/">residential real estate in theLos Angeles area</a>, you will need an experienced and knowledgeable realtor to
help you find the perfect property, then help you with negotiations and all the
paper work. </span></div>
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<span style="font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Belle Tsai is the perfect choice. She has been actively
dealing with West Los Angeles real estate issues for her entire adult life.
Call Belle today at 310.738,7118 </span><span style="mso-fareast-font-family: "Times New Roman";"></span></div>
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<span style="mso-fareast-font-family: "Times New Roman";"><a href="tel:310-738-7118"><br /></a></span></div>
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<a href="tel:310-738-7118"><br /></a></div>
<strong>Belle Tsai - Sotheby's International Realty</strong><br />
15308 Sunset Blvd.<br />
Pacific Palisades CA. 90272<br />
<span style="color: black;"><a href="tel:310-738-7118">310.738.7118</a>
</span><br />
CalBRE# 01841341<br />
SIR CalBRE# 899496
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Randy Kirkhttp://www.blogger.com/profile/07187149342560881341noreply@blogger.com0tag:blogger.com,1999:blog-5634704439897488455.post-65350618252318321172017-06-26T09:38:00.000-07:002017-06-26T09:38:07.109-07:00Los Angeles Real Estate Prices Are Nowhere Near Topped Out – Proof!
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<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgtn3GH5Os3BY8MZK8d1UGxzR9eIGj5Ckw9vmzXHYMOE5B0NRJsSNCqo11jujwMIoUilmSlkO3UFS5MPZHrDVjR-p247v71eFsulr33SYXMDJcewsuqJfhDkdtkfh9zzxtHUBBthfzKWJY/s1600/Screen+Shot+2017-06-26+at+9.32.10+AM.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="668" data-original-width="910" height="292" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgtn3GH5Os3BY8MZK8d1UGxzR9eIGj5Ckw9vmzXHYMOE5B0NRJsSNCqo11jujwMIoUilmSlkO3UFS5MPZHrDVjR-p247v71eFsulr33SYXMDJcewsuqJfhDkdtkfh9zzxtHUBBthfzKWJY/s400/Screen+Shot+2017-06-26+at+9.32.10+AM.png" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Los Angeles 1986 - 2016</td></tr>
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Home Prices in LA County Likely to Rise Another 40% Over Next Four Years</h2>
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I apologize in advance. We are going to go into the tall
weeds for this post. Evaluating the direction of any market is difficult,
whether Tesla stock, Apple bonds, coffee beans, or Bitcoins. It is easy to get
burned even if you’ve done your homework. </div>
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Housing is at least as complex as any market you might think
to invest in. Most homes are purchased for the purpose of setting up a
household for years into the future. In fact, the length of time that
homeowners remain in a home is one huge factor in reducing current market
supply, thereby driving up prices. We will speak primarily to the the
owner-occupier in this post, but the information will apply equally to
investment purchases. </div>
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Where to start? Let’s begin with history. The Los Angeles
residential real estate market is famous for wild swings. Everyone whose has
lived here for more than a couple of decades will tell stories of the house
they should have purchased (e.g. Venice in 2001.)</div>
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However, regardless of the swings, the LA market has moved
ever upward. Each correction is followed by a new top. Of course, each top is
followed by a selloff of 30% or even more.</div>
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<b style="mso-bidi-font-weight: normal;"><span style="color: red;">First observation:</span></b><span style="color: red;"> </span><i style="mso-bidi-font-style: normal;">We are not at a new top. We are just now
reaching parity with 2007 in nominal terms. When adjusted for inflation we are
still 12.4% below 2007. No one knows how far above the old top we will go, but
30% would not be unheard of. Thus, we might have more than 40% to go before
reaching the top. </i></div>
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How is the Spring 2017 market doing? Generally, other than
an economic crisis, there will be some evidence of topping as homes take longer
to sell, or sellers start dropping their price. As of this writing, the average
days on market in LA County is 40 days. It is common in flat markets for homes
to average 90 days or longer to sell. Continued shortages of quality properties
for sale or rent in Spring of 2017 suggest a continuation of the strong market.
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Moreover, due to permitting difficulties and a lack of
places to build, it is unlikely that even bullish builders can flood the market
within the next 30 months. </div>
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<b style="mso-bidi-font-weight: normal;"><span style="color: red;">Second observation: </span></b><i style="mso-bidi-font-style: normal;">The lack of supply is going to continue, and will drive up prices and
rents for at least another 3-4 years.</i></div>
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What about affordability? We’ve all read the headlines that
LA residents can’t afford these rents and/or purchase prices. Read a bit further
and you’ll find out that LA is undergoing a massive demographic shift. Those
who can’t afford the prices are moving out. Those who can are moving here from
colder and less interesting places. </div>
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LA is now a World Class City like London, NYC, or San
Francisco. The tech folks are moving in to LA, because the nerds are just like
everyone else. They love sun, beaches, snow boarding, and night life. The
gentrification of DTLA is absolutely stunning in the transformation and the
pace of change. With two incomes in the six-figure range, you can afford a lot
of house. So the incomes of the folks who live here don’t need to go up. The incomes
of those moving in need to be high enough to afford the housing. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;"><span style="color: red;">Third observation:</span></b><span style="color: red;"> </span><i style="mso-bidi-font-style: normal;">Affordability has not been tested yet. The
stats don’t tell the entire story.</i></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
The wealth effect. We are currently undergoing by far the
largest transfer of wealth in human history. Baby boomers are inheriting from
their parents, and many are already “helping” their kids and grandkids just
like earlier generations. If grandma makes a big enough down payment, the
monthly payments are more affordable. Expect this factor to only get bigger and
bigger over the next decade. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Another huge wealth effect is the amount of equity currently
in homes. After the meltdown of 2008, the equity has shot up with many
homeowners owning their properties outright. When it is time to move, these
folks have all cash or a very large down payment. Once again, the affordability
isn’t in question based on income. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;"><span style="color: red;">Fourth observation:</span></b><span style="color: red;"> </span><i style="mso-bidi-font-style: normal;">If you have enough wealth, you don’t need a
lot of income to afford a home. If you have wealth and income, you can afford a
lot of home. </i></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
In addition to an influx of US citizens from Seattle, San
Francisco, Silicon Valley, and other tech hot spots, Los Angeles is a draw for
those seeking to immigrate into the US. If you pay close attention while
walking down the local mall, it doesn’t take a rocket scientist to see that the
ethnic makeup of Los Angeles is heavily made up of recent arrivals. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Some of these folks are coming for school. Others because they
have employment offers or want to establish a business here. Some are merely
attempting to offshore some of their wealth. Foreign buyers have represented a
large part of the purchases over the current boom. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;"><span style="color: red;">Fifth observation: </span></b><i style="mso-bidi-font-style: normal;">There is no expectation that the lure of LA will be over any time soon.
We are a land of immigrants. </i></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
A consistently accurate way to measure housing prices is to
take a look at the housing price compared to the rental income that home could
provide. This makes great sense as residential real estate investors will move
out of the market place if this ratio doesn’t make sense. Moreover, the “crowd”
seems to sense when it makes more sense to rent or more sense to buy on a
purely economic basis. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
The LA market tends to fluctuate between 15 and 24 on this
formula. If the rent is $5000 a month, that would be $60,000 a year. If you multiply
that by 15, that home is worth $900,000. If you multiply by 24, the home is
worth $1,440,000. The current price to income ratio in LA is 17.1 according to
Zillow. Once again, this suggest that we are far from overpriced. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Obviously, one can make the argument that both rents and
prices are too high, and LA is experiencing a bit of a building boom in
apartments right now. However, no pundit I’ve read seems to think this boomlet
in apartments will solve the shortage. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;"><span style="color: red;">Sixth observation: </span></b><i style="mso-bidi-font-style: normal;">Landlords are still able to get higher rents, and that is currently keeping
the ratio quite acceptable. If rents stagnate, then it could be evidence of a
top.</i> </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Less closely tied to the value of residential property, but
still a factor, commercial, industrial, and raw land do impact overall real
estate values. If homes and apartments are hard to find right now, these three
categories are almost non-existent in LA County. This means builders have no
place to build. The one exception is retail, but because office and commercial
is so tight, retail properties that come on the market are often converted to
employee or warehouse space. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
No one who knows LA has any doubt that there is little land
that hasn’t been built on. The ocean and the mountains have set the limits, and
like other similar cities, this land limitation will also drive up prices. OC’s
prices are already higher than LA, and the Inland Empire is where folks are
heading who can’t afford LA.</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;"><span style="color: red;">Seventh Observation: </span></b><i style="mso-bidi-font-style: normal;">Alternative ways to increase supply are not viable. If supply doesn’t
increase, and demand remains steady or goes up, prices must follow.</i> </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Mortgage interest rates continue to sit close to historic
lows. Someday they are likely to go up to historic averages around 5.5% - 6%.
There is no doubt that this will put downward pressure on prices as the cost of
the mortgage will affect affordability. If this increase is slow enough, the
impact may not be substantial. A 1% increase on a $1,000,000 home with 20% down
adds about $650 per month to the cost. This would suggest that prices might
have to drop 10% to offset the interest. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Our earlier assessment was the prices will go up another
40%. If interest rates go up by 1 or 2%, this might result in prices only going
up 20% or 30%. Historically, at some point, there will be a 30% correction. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;"><span style="color: red;">Eighth observation:</span></b><span style="color: red;"> </span><i style="mso-bidi-font-style: normal;">Interest rates on mortgages will probably go
up, and this will affect sales prices.</i></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Buying high seems like such a bad idea, but if you are
buying for the long term, even if you might move to another home in the future,
your initial purchase price will have little to do with your long term economic
benefit. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Huh?! I don’t blame you. It took me a while to get my arms
around this one. As long as you stay in a purchased home, you will not “realize”
a profit or loss. Say you buy a home for $500,000, and it drops in price to
$350,000, but you don’t sell. Later the home goes up to $480,000 and you sell.
You lost money, but you now take your stake (down payment), and you are
investing in the next home in the same market condition of the one you’re
selling. Somewhat depressed. So you sell at a bargain rate and also buy at a
bargain rate. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
In the opposite situation, you might sell for $700,000, but
all the homes you hope to buy have also gone up 40%. You sell at a high price,
but you have to buy at a high price. The only time any of this matters is when
you sell the last time and leave the market. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;"><span style="color: red;">Ninth observation:</span></b><span style="color: red;"> </span><i style="mso-bidi-font-style: normal;">If you plan to own a home or a string of
homes over the next 10 – 50 years, don’t worry too much about where the market
is today.</i> </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
What about the economy? We are part of the strangest economy
in the last 70 years or longer. We have very slow growth, but it has been
protracted over the past 7+ years. While this created long term problems for
many workers who were unemployed or underemployed, we seem to have now reached
some kind of stable growth, with low inflation, and employment at good numbers.
</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Since we have not seen wage growth even at “full” employment,
one has to suspect that many in the workforce are still substantially
underemployed in both their position and hours. If the economy continues this
anemic growth rate, those with good jobs and decent income and wealth may
continue to love the economy (see the stock market.) However, this would not be
good for those who are still underemployed or who have given up. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
On the other hand, if the economy starts to grow at 3%,
there should be better jobs and hours, creating a demand push on wages. This
will help many to afford more rents and higher home prices. Either way, the
economy looks to be our friend for the next several years when it comes to
demand for housing. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;"><span style="color: red;">Tenth observation: </span></b><i style="mso-bidi-font-style: normal;">Crazy things happen (1999, 2008), so the economy could always spin
downward. Right now that seems to be the least likely of scenarios.</i> </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Summary: If you are thinking of buying a house, whether it
is your first or your 10<sup>th</sup>, the primary motivation for moving now is
the interest rates. Buy before they go up!! As noted in the 9<sup>th</sup>
observation, it won’t matter in the long term if you overpay. But as noted in
the first eight observations, there is little likelihood that home prices are
going down any time soon. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
As noted above the market for homes is extremely tight with
very little supply of better homes in the better neighborhoods. That’s why you
should call Belle Tsai to help you find the perfect home for your needs. Belle
has been active in the West Los Angeles real estate market for almost 30 years,
and more recently has also found good options in Mid-Wilshire and along the 10
Fwy. Call her today at 310,738.7118<br />
</div>
<div class="clear">
</div>
<div class="sothebys">
<a href="http://www.sothebyshomes.com/"><img height="69" src="http://westla-realestate.com/images/SIR_logo_White.png" title="sothebys logo" width="200" /></a>
</div>
<div class="MsoNormal">
<br /></div>
Randy Kirkhttp://www.blogger.com/profile/07187149342560881341noreply@blogger.com0tag:blogger.com,1999:blog-5634704439897488455.post-18464546662359488722017-05-13T09:09:00.000-07:002017-05-17T18:19:21.721-07:00Save $600 a Month with 10 Simple Steps and Afford $100,000 More on Your Next House<style>
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<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjiu88b_xDXWo8SpIUGws7LEetZWBypLfjbai9CLn_rdr3CZvEyrMFPM67daGvUr7cjXRTpbE96sV6CKUs0VATWkezfeEEcPyzJNxh_RyXXCnxYC0agV99PySWV8JnEPz8FVhI2focfJoY/s1600/Screen+Shot+2017-05-13+at+11.03.39+AM.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" height="287" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjiu88b_xDXWo8SpIUGws7LEetZWBypLfjbai9CLn_rdr3CZvEyrMFPM67daGvUr7cjXRTpbE96sV6CKUs0VATWkezfeEEcPyzJNxh_RyXXCnxYC0agV99PySWV8JnEPz8FVhI2focfJoY/s400/Screen+Shot+2017-05-13+at+11.03.39+AM.png" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Save Big Money with a Few Simple Ideas</td></tr>
</tbody></table>
<h2 class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="font-family: "times new roman";">A few phone calls, and an hour of planning could save you $7000 a year</span></h2>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<br /></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="font-family: "times new roman";">No, this is not another article about
clipping coupons or going without things you like to have or do. The following
are tested methods that won’t change your lifestyle in any significant way, and
that only take a few moments. </span></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="font-family: "times new roman";">There are many, many options available
for using the $600 a month after you’ve achieved the savings. We are going to
suggest using these funds to afford $100,000 more on your next home. Right now,
with 4.15% 30-year interest rates, each $100,000 you spend on a home will
result in about $600 in monthly payments. </span></div>
<ol start="1" type="1">
<li class="MsoNormal" style="mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "times new roman"; mso-fareast-font-family: "Times New Roman";">Call your
cable TV provider. Tell them you are considering going off grid or
switching to satellite. If you have satellite, call the provider and tell
them you are thinking of switching to cable. Watch the dance begin. You
are very likely to end up with at least $20 or more in savings. Now call
the competition with your new rate and see what they will do. You are
likely to end up with the same or better rate and some kind of promotional
money or free stuff for switching. </span></li>
<li class="MsoNormal" style="mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "times new roman"; mso-fareast-font-family: "Times New Roman";">Go off the
grid on cable. Between Apple TV, Hulu, Netflix, RedBox, Amazon Prime,
and other TV offers, it is hard to justify any upgrades to basic service
on cable or satellite. The savings for getting off of cable could easily
be $50 or more.</span></li>
<li class="MsoNormal" style="mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "times new roman"; mso-fareast-font-family: "Times New Roman";">On to your
cell phone, internet, and land line providers. This gets a bit more
complicated, but the cost of all of this is dropping fast. By changing
providers, bundling, unbundling, and just shopping, you are very likely to
end up saving another $30 a month and improving MBPS. Recently I tried to
end my land line service, but the bundle cost less with it that
without. </span></li>
<li class="MsoNormal" style="mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "times new roman"; mso-fareast-font-family: "Times New Roman";">Saving on
your utilities. The water company (at least in California) will be happy
to help you cut down your water use. Check with your supplier to find out
how to get free or reduced costs products to reduce use in bathrooms and
irrigation. Then check to see what the recommended water needs are for
your yard. The electric company will help you with lighting and other ways
to save on electricity. LED lights are fantastic and save a huge amount of
money. Switch appliances to natural gas to save even more. Saving $50 a
month for these changes should be a cinch. </span></li>
<li class="MsoNormal" style="mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "times new roman"; mso-fareast-font-family: "Times New Roman";">Budget. Keep
a penny by penny ledger of all expenses for three months. There are many
online tools that can help with this process. Once you see where the money
is going, you will almost certainly be able to find ways to cut that won't
hurt even a little bit. We’ll put this down as $25.</span></li>
<li class="MsoNormal" style="mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "times new roman"; mso-fareast-font-family: "Times New Roman";">Shop your car
insurance. We have 4 drivers on the policy, so your results may vary. Don’t
forget to check Costco or AAA. It is not unusual to save $100 or more. You
should also review your other insurance policies annually to make sure you
have the coverage you need, and to see about savings on rates. Life
insurance is another very likely savings point. </span></li>
<li class="MsoNormal" style="mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "times new roman"; mso-fareast-font-family: "Times New Roman";">Speaking of
Costco. The savings by purchasing your groceries and other items at Costco
are real and significant. <a href="http://www.nytimes.com/2005/07/17/business/yourmoney/17costco.html?pagewanted=all&_r=0"><span style="color: blue;">Costco marks up all items by 15%.</span></a> What they
buy for $10.00, you pay only $11.50. Most discount department stores
mark up 50% to $100. So you would pay $15.00 - $20.00. I know
you have to buy huge quantities. Find nooks all over the house for storing
commodities. Buy and extra freezer. A one time small cost for huge
savings. Multiple online sources report Costco as cheaper than Walmart,
Sam’s, and Amazon Prime. Imagine the savings compared to your local chain
market. Potential savings of at least $25 per month per person.</span></li>
<li class="MsoNormal" style="mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "times new roman"; mso-fareast-font-family: "Times New Roman";">Amazon Prime.
When it isn't a Costco item, why not buy on Amazon Prime?!? Pricey
toothpaste, supplements, household items and more are almost always
cheaper on Amazon than at Target or CVS. And there is no freight and no
auto expense. When you need more, you have a record of what you
bought. Savings of another $10 per person per month.</span></li>
<li class="MsoNormal" style="mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "times new roman"; mso-fareast-font-family: "Times New Roman";">Get rid of
any high interest credit card. Use the savings from these other suggestions
to first pay off all credit cards with interest rates higher than your
mortgage interest rate. The only good use for a credit card is to build
credit. Pay them off every month. Or get an interest free credit card and
transfer all balances into the interest free card. Most families will save
at least $25 per month.</span></li>
<li class="MsoNormal" style="mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: "times new roman"; mso-fareast-font-family: "Times New Roman";">Get rid of
one expensive, useless or worse, habits. Smoking, buying booze in bars,
fast food, gambling (including lotto.) This could be the biggest
savings of all. An expense of just $10 per day is $300 a month. </span></li>
</ol>
<div class="MsoNormal">
<span style="font-family: "times new roman"; mso-fareast-font-family: "Times New Roman";">There is potentially a lot more than $600 a month in savings
in this list. </span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: "times new roman"; mso-fareast-font-family: "Times New Roman";">If you are now ready to go buy that bigger house in a nicer
school district, call Belle Tsai, and she’ll help you to get the most bang for
your buck on that purchase, too. </span></div>
Randy Kirkhttp://www.blogger.com/profile/07187149342560881341noreply@blogger.com0tag:blogger.com,1999:blog-5634704439897488455.post-12642735998796007742017-04-13T09:04:00.000-07:002017-04-13T09:04:41.835-07:00Don’t Believe the Scare Headlines – Buying a Home in Los Angeles Still Beats Renting – It Isn’t Even Close<style>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhB4qUgIMbOUvIVMSDVWH0DZSWjFqqJHsMNUDOnPa0Y2q_J2yhBp_C13sOoBr6SE9PlgmDkXX0cxSC7txWElRLJSwtKrug7CfH2qo08s07nAHO94eRkXbrCtabK6J4mTfHfn8Cv5bPl-7Y/s1600/Screen+Shot+2017-04-13+at+9.02.08+AM.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="228" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhB4qUgIMbOUvIVMSDVWH0DZSWjFqqJHsMNUDOnPa0Y2q_J2yhBp_C13sOoBr6SE9PlgmDkXX0cxSC7txWElRLJSwtKrug7CfH2qo08s07nAHO94eRkXbrCtabK6J4mTfHfn8Cv5bPl-7Y/s400/Screen+Shot+2017-04-13+at+9.02.08+AM.png" width="400" /></a></div>
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<br /><b><span style="font-family: "times"; font-size: 18.0pt;">Buying a Home Beats Renting - Even in West Los Angeles 2017</span></b></div>
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<br /></div>
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<span style="font-family: "times"; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";">This isn’t a scientific study, but the math is the math. Since 2013, we’ve
been watching the value of one West LA home that today is worth just under $1
Million. Each year we compared Zillo.com’s Zestimates for purchase and for
rent. We then looked at current mortgage rates using a 20% down, 30-year
fixed-rate mortgage. We assumed $500 per month of maintenance on the home. We assumed about 1% closing costs if the home were purchased in that year. We
spread those closing costs over 3 years. We also assumed that someone who could
afford this home was probably in the 25% income tax bracket, so we used 25% of
interest and property taxes as a savings. </span></div>
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<br /></div>
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<span style="font-family: "times"; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";">We recognize that home prices have been rising rapidly in this period, so
it is not representative of all real estate situations, and may be a terrible
predictive tool for the next 4-year period. But even if values drop, the out of
pocket costs will not be effected, as rents have not dropped in the previous
two real estate recessions. </span></div>
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<br /></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; mso-outline-level: 2;">
<span style="font-family: "times"; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman";">The results that follow give the out of pocket expense for renting versus
buying, and also show the wealth building for each. For wealth building, we
assume the home would be sold with real estate commissions at 5%. The renter
invested the down payment and made 6%, compounded on the investment.<i> Results are approximate and rounded for ease of viewing.</i></span></div>
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<br /></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: "times"; font-size: 14.0pt;">2013 – Purchase Price
$650,000 - Rent<span style="mso-spacerun: yes;"> </span>$3150</span></b><span style="font-family: "times"; font-size: 10.0pt;"></span></div>
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<span style="font-family: "times"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Year
one – Out of pocket cost to buy $3066 vs Rent $3150</span></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: "times"; font-size: 14.0pt;">2014 – Purchase Price
$795,000 – Rent $3125</span></b></div>
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<span style="font-family: "times"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Year
one – Out of pocket cost to buy $3550 vs Rent 3125</span></div>
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<span style="font-family: "times"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">If
purchased in 2013 – Out of pocket still $3066<span style="mso-spacerun: yes;">
</span></span></div>
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<span style="font-family: "times"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Wealth
Increase -<span style="mso-spacerun: yes;"> </span>$98,000 buy vs $7800 rent</span></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: "times"; font-size: 14.0pt;">2015 – Purchase Price
$840,000 – Rent $4000</span></b></div>
<span style="font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Year
one – Out of pocket cost to buy $3900 vs Rent $4000</span><br />
<b><span style="font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Year
three if purchased in 2013 – Out of pocket for purchase still $3066 vs $4000 to
rent</span></b><br />
<span style="font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Year
two if purchased in 2014 – Out of pocket for purchase still $3550 vs $4000 to
rent</span><br />
<br />
<b><span style="font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Wealth
increase if purchased in 2013 - $148,000 buy vs $16,000 rent</span></b><br />
<span style="font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Wealth
increase if purchased in 2014 - $3000 buy vs $10,000 rent</span><br />
<br />
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: "times"; font-size: 14.0pt;">2016 – Purchase Price
$930,000 – Rent $4000</span></b></div>
<span style="font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Year
one – Out of pocket cost to buy $4300 vs Rent $4000</span><br />
<b><span style="font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Year
four if purchased in 2013 – Out of pocket for purchase still $3066 vs $4000 to
rent</span></b><br />
<span style="font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Year
three if purchased in 2014 – Out of pocket for purchase still $3550 vs $4000 to
rent</span><br />
<span style="font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Year
two if purchased in 2015 – Out of pocket still $3900 vs $4000</span><br />
<br />
<b><span style="font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Wealth
increase if purchased in 2013 - $233,000 buy vs $26,000 rent</span></b><br />
<span style="font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Wealth
increase if purchased in 2014 - $90,000 buy vs $20,000 rent</span><br />
<span style="font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Wealth
increase if purchased in 2105 – 44,000 buy vs $11,000 rent</span><br />
<br />
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: "times"; font-size: 14.0pt;">2017
– Purchase price $970,000 – Rent $4000</span></b></div>
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<br /></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: "times"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">(Caveat – The big
jump in rent 2015 after a slight decrease in 2014 and the subsequent flat rents
in 2016 and 2017 could be smoothed out and still be good for comparisons)</span></b></div>
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<br /></div>
<span style="font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Year
one – Out of pocket cost to buy $4300 vs Rent $4000</span><br />
<b><span style="font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Year
five if purchased in 2013 – Out of pocket for purchase still $2766 vs $4000 to
rent</span></b><br />
<span style="font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Year
four if purchased in 2014 – Out of pocket for purchase still $3550 vs $4000 to
rent</span><br />
<span style="font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Year
three if purchased in 2015 – Out of pocket still $3900 vs $4000</span><br />
<span style="font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Year
two if purchased in 2016 – Out of pocket still $4200 vs $4000</span><br />
<br />
<b><span style="font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Wealth
increase if purchased in 2013 - $270,000 buy vs $34,000 rent</span></b><br />
<span style="font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Wealth
increase if purchased in 2014 - $125,000 buy vs $30,000 rent</span><br />
<span style="font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Wealth
increase if purchased in 2105 – 80,000 buy vs $23,000 rent</span><br />
<span style="font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Wealth
increase if purchased in 2016 - <$10,000> vs $11,500 rent</span><br />
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<br /></div>
<div class="MsoNormal" style="margin-bottom: 12pt;">
<span style="font-size: small;"><span style="font-family: "times";">After four years of running this experiment, and even with a
supposedly overheated seller’s market in Los Angeles, it seems that buying just
makes way more sense than renting. We can imagine scenarios where this would
not be the case. The housing market is subject to downturns just like any
market. It is possible to imagine this home dropping by $300,000 if there were
a typical drop in market values. </span></span></div>
<span style="font-size: small;">
</span><br />
<div class="MsoNormal" style="margin-bottom: 12pt;">
<span style="font-size: small;"><span style="font-family: "times";">Even then, these markets correct, and over time the
likelihood is that the home will continue its upward valuation curve. On the
other hand the market may continue strong and deliver another $100,000 or so in
appreciation over the next three years. </span></span></div>
<span style="font-size: small;">
</span><br />
<div class="MsoNormal" style="margin-bottom: 12pt;">
<span style="font-size: small;"><span style="font-family: "times";">A major issue in the current market is whether you can even <a href="https://www.blogger.com/WestLA-RealEstate.com">find a home to buy in Los Angeles.</a> Inventories
of Los Angeles homes are the lowest ever recorded. </span></span></div>
<span style="font-size: small;">
</span><br />
<div class="MsoNormal">
<span style="font-size: small;"><span style="font-family: "times";">We can help you with
that. Belle Tsai has the experience, the focus, and the backing of real
estate powerhouse, Sotheby’s International Realty to help you. Call Belle now
to get the ball rolling at </span><a href="https://www.blogger.com/null">310.738.7118</a></span></div>
<span style="font-size: small;">
</span><br />
<div class="MsoNormal" style="margin-bottom: 12pt;">
<br /></div>
<span style="font-size: small;">
</span><br />
<div class="MsoNormal">
<span style="font-size: small;"><b><span style="font-family: "times";">Belle
Tsai - Sotheby's International Realty</span></b><span style="font-family: "times";"><br />
15308 Sunset Blvd.<br />
Pacific Palisades CA. 90272</span></span></div>
<span style="font-size: small;">
</span><br />
<div class="MsoNormal">
<span style="font-size: small;"><a href="https://www.blogger.com/null">310.738.7118</a></span></div>
Randy Kirkhttp://www.blogger.com/profile/07187149342560881341noreply@blogger.com0tag:blogger.com,1999:blog-5634704439897488455.post-69241480018435610402017-04-05T15:25:00.000-07:002017-04-19T11:06:24.899-07:0010 Key Secrets - 2017 Los Angeles Guide to Home Buying <style>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgM3ZrDB_xJGhpqRoxAcZ-_oF63HgNttULnDHfgL9qCdzAiGN9q17x_yYpm2v0XoXcCD_pKA2zsg4vWkHq9_gwMIL-T9SC7JDGjHDOeMJp85PneiLrNsSbRcXBF_pgYKf9vuPWQqYYnBfE/s1600/Screen+Shot+2017-04-05+at+2.30.41+PM.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="218" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgM3ZrDB_xJGhpqRoxAcZ-_oF63HgNttULnDHfgL9qCdzAiGN9q17x_yYpm2v0XoXcCD_pKA2zsg4vWkHq9_gwMIL-T9SC7JDGjHDOeMJp85PneiLrNsSbRcXBF_pgYKf9vuPWQqYYnBfE/s400/Screen+Shot+2017-04-05+at+2.30.41+PM.png" width="400" /></a></div>
<h2 class="MsoNormal">
<br />
The housing market is still super tight in Los Angeles</h2>
<div class="MsoNormal">
<br />
The following 10 Key Secrets apply regardless of market
conditions, but they are especially true in a seller’s market such as we are
experiencing in Southern California 2017. Home sellers are generally receiving
multiple offers from qualified homebuyers within days of putting their home on
the market. How can you increase your chances of competing in such a market?
</div>
<div class="MsoNormal">
<br /></div>
<ol>
<li>Prove You Can Pay. Many buyers are showing up to
open houses prepared to pay all cash. These are usually sophisticated buyers
who may offer less than market, because they know that their all cash offer has
leverage. There will be no need for contingencies or surprise extensions due to
mortgage issues. If you are not paying all cash, be sure you have a letter from
your mortgage company declaring that you are preapproved for $X amount. </li>
<li>Have a well though-out plan. In this market it
pays to be flexible about everything. When you go view a home, you’ll need to
be ready to put in an offer if it will work for you. Know your acceptable
ranges on neighborhood, price, number of bedrooms and bathrooms, home or
condo/townhome, square feet, school district, etc</li>
<li>Hire an amazing real estate agent, like Belle
Tsai. There is no benefit in hiring a second tier agent. You want someone with
experience in the area you are moving to, and with great skills in negotiation.
You also want someone who knows how to manage all the moving pieces of the
process and paperwork.</li>
<li>Give your agent an exclusive, at least for 60
days or so. A great agent isn’t going to give you’re their best if you have
other agents on the job. The best agents have plenty of clients who will give
an exclusive, so you don’t want to be treated like second class. If they
haven’t done a great job within 30 days, change agents. If you like them, but
after 60 or 90 days the agent appears to be out of ideas, that may be the time
to add a second agent. Be sure to tell your agent when you do this, and set up
criteria for how you will decide which properties belong to which agent. </li>
<li>Do your own research on potential properties.
You agent will likely only “see” 80% of the places available at any given time.
This is not due to any failing on the agent’s part, but rather due to the
amount of activity on the Internet. You might even find a property by driving
around that is for sale by owner, or not yet on the multiple listings. </li>
<li>Eliminate any contingencies you can live
without. Contingencies can be the deciding issue in a close contest for a great
home. </li>
<li>It is legitimate to want to come back a second
time to any property you are considering. You may need to show it to a
co-owner, contractor, or someone offering you direction in making the purchase.
However, keep in mind that you may only have hours or a day or two to make the
offer. Being nimble is important in a tight market. If you are in an area that
is not so buyer friendly as LA or you are reading this later when things have
cooled off, you may have much more flexibility on time than during April to
July of 2017.</li>
<li>If cash flow is an issue (and it almost always
is), be sure to have your agent provide you with estimates of the cash you’ll
need to close and move in. The down payment, closing costs, moving expenses,
necessary repairs, window covers, utility and cable company deposits, can all
start to add up.</li>
<li>If the home or condo is part of an HOA (Home
Owners Association), ask your agent what he/she might know about this HOA. Some
of the rules can be really restrictive. Some HOA’s are not well run or have
financial problems. You may even want to call the president of the HOA or talk
to the management company for the HOA. </li>
<li>There
are many dozens of cities in LA County. Each of these cities has its own issues
related to crime, regulations, transportation, local taxes, and so on. These
issues are readily available to research online. You could find a lovely home,
in a perfect neighborhood, in a city that is known to be in decline. Your agent
is likely to be able to give you some direction, but do your own homework.</li>
</ol>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
If you are ready to start your search or have questions that
need answering before you do, or if you need to switch to a different agent,
call Belle Tsai to set up an appointment. Call now at 310-738-7118.<span style="font-family: "times"; font-size: 10.0pt;"></span></div>
Randy Kirkhttp://www.blogger.com/profile/07187149342560881341noreply@blogger.com0tag:blogger.com,1999:blog-5634704439897488455.post-91943272120721595352017-03-13T09:37:00.000-07:002017-03-13T09:37:28.506-07:00When to Buy a New Home - SoCal Home Buyers Get Most Choice in March-June
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<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEikolnY2a7eWQUIHJcdNEvjR00B3pDl_hA9Gc34i_oxxyjqX2XTx6HvOIzqQyQdChHxd8L7s4yx1KcAkjJbjljLfuLAKQmtBID5xOnZSBVIOJPsRL3hWyQQlF3oDCJILmRA1U_Cb7eilaM/s1600/Screen+Shot+2017-03-13+at+9.36.07+AM.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="404" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEikolnY2a7eWQUIHJcdNEvjR00B3pDl_hA9Gc34i_oxxyjqX2XTx6HvOIzqQyQdChHxd8L7s4yx1KcAkjJbjljLfuLAKQmtBID5xOnZSBVIOJPsRL3hWyQQlF3oDCJILmRA1U_Cb7eilaM/s640/Screen+Shot+2017-03-13+at+9.36.07+AM.png" width="640" /></a></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<br /></div>
For those who are looking to buy a home in Los Angeles, the
story for 2017 is pretty much a repeat of 2016 and 2015. Inventories are at
historic lows (Only about 100 homes for sale in Santa Monica), and there is serious competition for the best homes that come on
the market. So when is your best chance to score the home of your dreams?
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
In general, the best time is immediately.<span style="mso-spacerun: yes;"> </span>Your first step should be to concentrate on selecting
an excellent, hard working realtor, and be prepared to spend six months to a
year in your search. You can dramatically shorten the time to locate and buy a
home if you are flexible about the home, the neighborhood, or the price. But
the more you care about each of those elements, the longer your search is going
to take. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
The high season of real estate starts in March. More product
comes on the market in the Spring as sellers are interested in using the Summer
to move. This has generally been related to school and moving the kids to a new
district during the Summer. While this is still an issue, even families with no
children are generally hoping to move during the Summer months. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
As a result, substantially more inventory will be available
during March-May. The converse is also true - the shoppers are also out in droves.
And yes, prices go up due to the number of shoppers in the market competing for
the best properties. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
What steps can you take to make the process as smooth as
possible? Start by calling Belle Tsai. She has many years of experience helping
buyers find a great property in the Los Angeles Market. She is also associated
with Sotheby’s International Realty, and that relationship provides you with
massive additional resources. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Belle will help you to get set up with an outstanding
mortgage broker where you can be preapproved for a loan. Unless you are an all
cash buyer, home sellers are going to give preference to offers that have proof
of ability to borrow. In this market, you are hugely handicapped if you don’t
have your lender preapproval letter. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Next, Belle will listen carefully to your dreams and
expectations and then provide professional recommendations for homes that will
best fit what you are looking for. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Once the plan is in place, you will receive suggested homes
to go visit. Belle will accompany you on these visits to help evaluate each
property.<span style="mso-spacerun: yes;"> </span>When you find a property that
you like, she will help you prepare an offer that will be designed to the right
price for that house in that market, and that will appeal to the seller. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
If you are ready to start looking for your new home, call
Belle today @ <span style="font-family: Times; font-size: 10.0pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"><a href="https://www.blogger.com/null"><span style="color: blue;">310.738.7118</span></a></span></div>
Randy Kirkhttp://www.blogger.com/profile/07187149342560881341noreply@blogger.com0tag:blogger.com,1999:blog-5634704439897488455.post-51941561152151724912017-02-09T08:27:00.000-08:002017-02-09T08:31:24.116-08:00West LA – Santa Monica Homes Average Three Years to Break Even on Rent VS Buy<style>
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<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;"><span style="font-size: 16.0pt;"></span></b>You are so tired of paying the landlord and keep thinking
you ought to be buying instead of renting. There are lists of benefits and
detriments to each choice, but financially you keep watching your friends and
family members amassing huge assets in their primary residences.
</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Zillow produces an analysis that tells you how long you need
to live in a home before the costs break even when compared to renting. For
most of West Los Angeles, that is a mere three years. As you head more toward
mid cities, it can take less than two years to break even. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
While no method for scoring costs of ownership compared to
renting is perfect, Zillow says they have tried to take all the costs including
mortgage expenses, moving, repairs, utilities, and such. It also includes the
likely rent increases and home value appreciations for each neighborhood. </div>
<div class="MsoNormal">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgNUHn0n4UYpZ5TPUMlZVelIgcmN-zin35s0kA56iVeE6g5WZwTII62APPfti8Pv2mNbt99JKwXzN0ZS1dvBlW5IIVjbb3TQlBxevk5DcTAbz5T7FvWjCNApkleT-_67Ximf33xEzeeJTE/s1600/Screen+Shot+2017-02-03+at+2.06.36+PM.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="182" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgNUHn0n4UYpZ5TPUMlZVelIgcmN-zin35s0kA56iVeE6g5WZwTII62APPfti8Pv2mNbt99JKwXzN0ZS1dvBlW5IIVjbb3TQlBxevk5DcTAbz5T7FvWjCNApkleT-_67Ximf33xEzeeJTE/s400/Screen+Shot+2017-02-03+at+2.06.36+PM.png" width="400" /></a></div>
<div class="MsoNormal">
<span style="mso-no-proof: yes;"><br /></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;">How does the three
year breakeven math work?</b></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
For instance, LA County is predicted to have rents
increasing by an average of 3.46% per year, while housing values are predicted
to average 4.26 increase each year. Therefore only taking into consideration
the out of pocket cost, a homeowner will be paying 10% less per month by year 6
and 20% less by year 9 than if they were renting the same house. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
In the meantime, based on historical information, that same
homeowner would see the underlying asset value increasing by 4.26% each year,
or roughly doubling within a bit over 16 years. (Your results may vary widely
based on when you bought your home.)</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;">Example of three
years on rent versus buy</b></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Using the average price of a West LA home as an example to
flesh out these numbers, you would see the following:</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Home price early 2017<span style="mso-spacerun: yes;">
</span>$800,000<span style="mso-spacerun: yes;"> </span></div>
<div class="MsoNormal">
Down Payment 20%<span style="mso-spacerun: yes;">
</span>$160,000 </div>
<div class="MsoNormal">
Mortgage, Tax, Ins<span style="mso-tab-count: 1;"> </span><span style="mso-spacerun: yes;"> </span>$3,783 per month<span style="mso-spacerun: yes;"> </span>($630 is principle)</div>
<div class="MsoNormal">
Closing costs (appx)<span style="mso-spacerun: yes;">
</span>$13,500 ($375/month over 36 months)</div>
<div class="MsoNormal">
Total cost per month<span style="mso-spacerun: yes;">
</span>$4158.00</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Rental for that home would currently be around $4000. Cost
per month over first three years will be about equal, not including repairs.
Repairs will drive homeownership higher than rent during that time. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
The renter could also put his $160,000 in an investment. It
might pay $30,000 or so over that time. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
At the end of three years the cost will drop form $4158 to
$3783. In the meantime, the rents are projected to increase to about $4400.00.
This provides $600 a month in repairs, which should be a fair expectation. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
However, during this time, the homeowner has reduced his
mortgage by $22,680, and the expected value of the home has increased by over
$100,000. Sure, if the homeowner sold, there would be a cost of around $50,000
to sell. So the gain would only be $70,000, compared to the renter who has
gained about $30,000. The gains are not the same, as the owner will have tax
benefits and will clearly have no taxable income if he stays or sells and buys
another home. The investor may have had to pay some taxes on his gains. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b style="mso-bidi-font-weight: normal;">What happens after
six years?</b></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Move ahead another 3 years. The rent is now $48,400. An
argument can be made that the homeowner is now pocketing at least $400 a month
in cash flow. There has been another 23,000+ in equity gain from principle
payments, and another $120,000 in value increase. A sale will now cost $60,000,
so the gain is <b style="mso-bidi-font-weight: normal;">$115,000</b>, plus the
cash flow benefit of $15,000. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
The tenant may have made <b style="mso-bidi-font-weight: normal;">$40,000</b> or so. His rent is now almost $5000 a month, the owner is
still paying a mortgage of under $4000 (property taxes would increase
somewhat.)</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
As the years go on, the benefits get even bigger for
ownership.</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
We won’t use this space to discuss the myriad other plusses
and minuses associated with rent versus buy such as flexibility, community,
stability, etc., We only hoped to provide the details of the Zillow estimate
that after three years, a owner will have achieved parity with a renter
financially from a cash flow standpoint, and have a huge gain when taking into
consideration principle payments and tax savings. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Belle Tsai is an experienced professional home seller for
the entire DTLA to Santa Monica region. She can help you find the home of your
dreams. Call her today to discuss your needs at <a class="phone" href="tel:310-738-7118">310.738.7118</a><br />
<br />
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<div class="sothebys">
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</div>
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<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<br /></div>
Randy Kirkhttp://www.blogger.com/profile/07187149342560881341noreply@blogger.com1