Your Local Home Advisor

Market Up Market Down - What about housing?

Posted by Connie Gohata on Tuesday, February 13, 2018 Under: Building Wealth through Real Estate
I'm truly amazed at housing prices - even rental - in the west side of LA - or any part of Southern California.  If you are a first-time home buyer, it's mind boggling.  What should you do if you are just starting out?

My suggestion - since the housing market has shown (for the past 65+ years) that it will continue to rise overall, buy something that you can afford, now!  If you bought a home in 1990, it has probably doubled or more, in value.  I bought a house in 1974 for $35,000, in Fountain Valley.  What do you think it is worth today?  Yes, it went up in value!  I bought another house in 1992 in Cypress.  Do you think it stayed the same price?  NO!  We bought it for about $290K, then.  You can't even buy a shack for that price!  I know - I just sold a shack for $400K.  The house in Cypress is a 5 bedroom/3bath home.  It is on a 6000 sf lot.

BUT if you bought a house 15 years ago in West Los Angeles/Mar Vista for let's say $700K, it is probably worth more than $2mil now.  Wow!

So, who can afford these homes?  Well, maybe you can - eventually.  Here's a plan:

  1. Buy a condo, now, for $385K.  Perhaps it is small, 3/2, in Norwalk.  With mortgage rates still low, your payment could be $1832 with only $13,000 down.  How much are you paying in rent these days?  Remember, the down payment is really your savings account - which will certainly be worth more in the future than you can gain at the bank!  If you put $50K down (from your 401K), your payments would be $1650/month.  Yes, there is an HOA payment, too, but it's for insurance and grounds upkeep!  You'd have to spend some money on those things for a house.
  2. In 4 to 5 years, let's say the condo is now worth $550K.  You have paid it down only $27K, but appreciation is the name of the game and your home has gone up in value $165K plus the $27K.  That's $192K!  So put $150K of that down on another house, keep the condo for a rental, and you're on your way up!  at 20% down, you can buy another home for $750K!  Moving up!
  3. Yes you can!  It may not even take 4 to 5 years!
  4. The housing market moves in cycles - there are down years, but as we have just seen, the market goes back up.  Now, homes are worth a lot more than they were when the market was down.  You just have to decide to DO IT!
Need a one to one with me to go over this in your situation?  Give me a call!  Connie, at 714-553-9146!

In : Building Wealth through Real Estate 


Tags: buyer "home buyer" investing "first home" 
null

Market Up Market Down - What about housing?

Posted by Connie Gohata on Tuesday, February 13, 2018 Under: Building Wealth through Real Estate
I'm truly amazed at housing prices - even rental - in the west side of LA - or any part of Southern California.  If you are a first-time home buyer, it's mind boggling.  What should you do if you are just starting out?

My suggestion - since the housing market has shown (for the past 65+ years) that it will continue to rise overall, buy something that you can afford, now!  If you bought a home in 1990, it has probably doubled or more, in value.  I bought a house in 1974 for $35,000, in Fountain Valley.  What do you think it is worth today?  Yes, it went up in value!  I bought another house in 1992 in Cypress.  Do you think it stayed the same price?  NO!  We bought it for about $290K, then.  You can't even buy a shack for that price!  I know - I just sold a shack for $400K.  The house in Cypress is a 5 bedroom/3bath home.  It is on a 6000 sf lot.

BUT if you bought a house 15 years ago in West Los Angeles/Mar Vista for let's say $700K, it is probably worth more than $2mil now.  Wow!

So, who can afford these homes?  Well, maybe you can - eventually.  Here's a plan:

  1. Buy a condo, now, for $385K.  Perhaps it is small, 3/2, in Norwalk.  With mortgage rates still low, your payment could be $1832 with only $13,000 down.  How much are you paying in rent these days?  Remember, the down payment is really your savings account - which will certainly be worth more in the future than you can gain at the bank!  If you put $50K down (from your 401K), your payments would be $1650/month.  Yes, there is an HOA payment, too, but it's for insurance and grounds upkeep!  You'd have to spend some money on those things for a house.
  2. In 4 to 5 years, let's say the condo is now worth $550K.  You have paid it down only $27K, but appreciation is the name of the game and your home has gone up in value $165K plus the $27K.  That's $192K!  So put $150K of that down on another house, keep the condo for a rental, and you're on your way up!  at 20% down, you can buy another home for $750K!  Moving up!
  3. Yes you can!  It may not even take 4 to 5 years!
  4. The housing market moves in cycles - there are down years, but as we have just seen, the market goes back up.  Now, homes are worth a lot more than they were when the market was down.  You just have to decide to DO IT!
Need a one to one with me to go over this in your situation?  Give me a call!  Connie, at 714-553-9146!

In : Building Wealth through Real Estate 


Tags: buyer "home buyer" investing "first home" 
null

About Me


Connie Gohata RealtorĀ® and RE Investor Short Sale and REO Specialist Regular Sales, Distressed Sales CA/BRE #01822665 Phone: 714-553-9146

Make a free website with Yola