Owning a home has great financial benefits, yet many continue to rent! Today, let’s look at the financial reasons why owning a home of your own has been a part of the American Dream for as long as America has existed.
“In reality, buying or renting a home is an intensely personal decision, with emotional and even financial considerations that go beyond whether to invest in this one (admittedly large) asset. Looking strictly at housing market numbers, there is a concrete point at which buying a home makes more financial sense than renting it.”
What proof exists that owning is financially better than renting?
Homeownership allows you to lock in your monthly housing cost.
Buying a home is cheaper than renting.
No other investment lets you live inside of it.
Studies have shown that a homeowner’s net worth is 44x greater than that of a renter.
Just a few months ago, we explained that a family that purchased an average-priced home at the beginning of 2017 could build more than $48,000 in family wealth over the next five years.
Some argue that renting eliminates the cost of taxes and home repairs, but every potential renter must realize that all the expenses the landlord incurs are already baked into the rent payment– along with a profit margin!! #LOFT #DTLA
Bottom Line
Owning your residence has always been, and will always be, better from a financial standpoint than renting. Now you understand the value of owning have a look at this downtown Loft located at: 630 W 6th Street Los Angeles, CA 90017
Location! Location! Location! This desirable demanding condominium is in the heart of Down Town Los Angeles. Right next to the Library. Conveniently living around shopping, restaurants, offices, public library and transposition. This sleek turnkey unit includes stainless steel appliances and one parking space. Amenities include GYM, Media Room, Sundeck and 24/7 concierge. It is offered to sale as it is condition. The entire complex was renovated in the late 1990’s
For more guidance in shopping for a Downtown Los Angeles Loft sign up for a free list of available properties. Fill out the request form here
This article about housing market prices and economics will end with a really frightening way to gain wealth in a market that paralyzes many with fear!
DTLA Real Estate Sideways Market
As prices continue to move up in Downtown Los Angeles, the real estate market begs the question of what happens when prices get too high. First we must keep in mind that price is only an issue in the absence of value. There have been plenty of prospective buyers who said loft and condo prices were too high in 2010, 2011, 2012, 2013 and there are, of course, still those who say prices are too high today. The difference is that the average Downtown loft and condo price today is more than double what is was in 2011. We are seeing more reports of up, down and sideways housing markets in the news. While most of the U.S. and Canada is booming today, Vancouver is going great, but Toronto is declining. #dtla #housing #market
Forbes recently reported that home price growth in 2018 is likely to calm down measurably and rise by only 2% on a nationwide basis. Some states will actually experience a price decline, while others will still enjoy large gains.
Naturally, Redfin sounded more bullish in their recent real estate report, saying “Home prices increased 7.8 percent year over year to a national median sale price of $280,500 in January. Sales were down 7.9 percent annually as the ongoing inventory shortage showed no signs of ending. The number of homes for sale in January dropped by 14.4 percent, the largest year-over-year decline in 28 consecutive months of falling supply.”
Relatively high prices and falling supply support a balanced market, yet new statistics from our northern neighbors may give a clue as to what the U.S. housing marketing is up against. The U.S. Federal Reserve recently announced that Canadian Real Estate Prices Are The Fastest Falling In The World. U.S. prices are still rising, for now.
After more than 7 years of correctly educating prospective home buyers about the huge growth potential of Downtown L.A. real estate prices, the L.A. Loft Blog is now providing substantial information about the growing possibility of a stagnant, or volatile sideways housing market. Unbeknownst to some would-be home buyers, there is very little chance of a huge dip in housing prices in the next few years. An unexpected upward surge in home prices would be more likely as the dollar today has enormous pressure to decease in value, leading to unexpected future inflation. That coming rampant inflation caused by too much liquidity created by the Fed, combined with the leak of fiat money into cryptocurrencies, may take several more years to become visible. In the mean time, a volatile sideways market, with prices rising, falling, shifting, falling and rising unexpectedly is the most common scenario for L.A. over the next few years.
Only the most astute investors will benefit from this kind of sideways real estate market. Those who have relied on a sharply rising market will fail. Many flippers shall find it hard to make ends meet. Renters who are waiting for a big price crash before they make the plunge into owning will be in for a letdown. Rent prices can rise more than expected while home prices stagnate. Many renters today would be better off owning while interest rates remain historically low and while affordability is relatively high. Today, there are too many renters who don’t understand the value of real estate for their financial future.
PREDICTIONS
Buy low and sell high to make the most profitable investment. Buy high and sell higher also works great! Prospective home sellers who are waiting and waiting for a sure sign that the apocalypse is coming will not get what they expect. They will not see the bottom fall out of home prices any time soon. With prices relatively high and with a healthy number of home buyers in the market, today is a great time to sell for those who have different plans for their money. Wealthy people, along with up-and-comers, understand that there is always unlimited opportunities in every market.
Risk and reward — as close as lips and teeth.
Here’s a really fun prediction that will likely come true: Those crazy gamblers who sell their homes today to purchase many Bitcoins when Bitcoin price falls to around $500 will gain lots and lots of wealth. They will likely be able to buy about 500 nice homes in about 6 years. That’s right. One Bitcoin will likely rise to be about the value of a nice house, or a nice loft if you prefer. How about owing 500 beautiful homes around the world? Is it worth the risk? Or is it riskier to lose out on the big rewards? Tell us what you think. | COMMENT
Enjoy your immense real estate wealth that you’ll create while others become perplexed by a sideways housing market!
Not ready to jump onto the blockchain bandwagon? Don’t worry. Good old fashioned research, due diligence, hard work, determination and minimal risk will work just fine for Downtown real estate investments. The bonus shall be an enjoyable lifestyle amid amazing loft architecture with character, convenience and the creative energy of L.A.’s urban center.,
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