Is Downtown Los Angeles now a luxury real estate market? #affordable #dtla
Lofts under $400,000 are drying up today just like lofts under $300,000 evaporated a couple years ago. For renters, the story is similar; DTLA lofts that rented for $2,000 per month a few years ago are going for $2,500 today. A few years ago, $8,000 per month was very pricey for rent in Downtown L.A. yet today, renters are paying upwards of $100,000 per month for rent Downtown.
Not too long ago, artists took refuge in Downtown’s decaying buildings for their large size, open space and affordability. Downtown is still a great bastion of art, but, today, the starving artists are being replaced by commercially successful artists. The struggling painter is forced to move to Lancaster or Bellflower, while the award-winning film maker moves from Beverly Hills to enjoy the new, hip shops and restaurants the Historic Core and Arts District. Regardless of how affordable or expensive the Downtown LA loft, condo and apartment market, there are always some kind of bargains to be found. It is our job to help find them. Get affordable lofts for sale and for lease. Fill out my online form:
The funny thing about distressed real estate is that it’s not just the property seller who is in distress; it is the buyers as well. Some are worried while others are sitting pretty.
The LA Loft Blog has been presenting valuable exclusive Downtown real estate information, market data and economic projections for more than 5 years now. And we’re just getting started. We’ve helped nearly one million buyers, sellers, renters and investors to make countless millions of dollars in profit and equity. The LA Loft Blog was among the first to remind buyers to catch the wave and buy big in 2012. We reported that buying a Downtown loft that year was going to be almost like getting free real estate. Prices more than doubled in record time. The LA Loft Blog was right on! So, what are the opportunities that we are telling you about today? — A normal market in a better-than-normal neighborhood. Superior growth! Above-average potential for return on investment. Cha-Ching!!
You won’t find a quick free property today. There are usually far more distressed properties for sale during a major economic recession. The good news for those looking for a really good deal today is that certain kinds of distressed properties are not that difficult to find. Properties are not usually considered distressed the day they are listed. If the seller takes an offer 3 days on the market, there is not a whole lot of distress there. The distressed properties are the lofts that nobody wants. They’re listed for too high of a price, they’re on the market for more than 63 days. They’re too dark, no view, cluttered or not presented well, awkward floor plans, sometimes pulled from the market prematurely. Sometimes, they just need a decorative lighting, a modern decorated look, a wall removed or a frosted glass sliding bedroom door to be added. They can all present a better-than-average deal because they are overlooked by most buyers. But should we focus on the superior investment potential of the amazing historic loft architecture or the upcoming special assessment to repair the crumbling building facade?
Here’s a BIG hint folks: Sometimes there are micro recessions and market glitches that give better deals: pre-elections, holidays, market lulls and nearby construction booms can create a mini glut and temporarily low prices. Did you get the hint? Those are all happening in Downtown right now! Yes, as billionaire Warren Buffet says “Get greedy when others are scared, and get scared when others are greedy.” Today, there’s a bit more scared than greedy in DTLA, so the astute investors know that they should be just a little bit greedy at this point.
Today in Downtown Los Angeles, there are virtually zero foreclosures. There are several other categories of distressed properties: vacant more than 30 days, buildings with lawsuits, post-litigation and pre-litigation, neglected properties, raw lofts, properties with upcoming special assessments, canceled and withdrawn listings, unlisted, pocket listings and off-market properties, and sellers who must sell fast. The most often overlooked deal is the ignored overpriced loft that becomes underpriced after receiving a strategic offer.
Get a free list of distressed Downtown lofts and condos. Fill out the online form:
years ago are going for $2,500 today. A few years ago, $8,000 per month was very pricey for rent in Downtown L.A. yet today, renters are paying upwards of $100,000 per month for rent Downtown.
