Tag: buy home

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Loft Lending Problems – Downtown Los Angeles Area Home Financing Issues

While today may be the very best time to buy a home while competing buyers are dormant for the holiday season, there are few issues to be aware of regarding financing.

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Most Downtown Los Angeles lofts are industrial or commercial conversions that are special exceptions under the City of Los Angeles Adaptive Re-Use Ordinance. Many residential lenders will completely fail, delay or charge additional points to try to handle loft financing.

More than 25% of currently active DTLA lofts and condos have current or recent litigation that can affect the livability, financing ability and investment potential of the homes.

Out of area lenders, especially out-of-state lenders will have more delays. The paperwork is often processed incorrectly and must be re-done. Just this week, a buyer who wanted to move on a weekend was forced to wait until the following week because her lender and notary in Texas signed a document in a way that was unacceptable in California.

New consumer protection laws are also causing bureaucracy delays.   If a buyer needs to make a change to a signed mortgage agreement, it may now cause an extra 3-day delay for each change to the contract.

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Keeping these issues in mind, most real estate and finance experts now agree that interest rates and monthly payments will be going up.  Savvy buyers will take advantage of today’s low interest rates for the lowest monthly payment.

Because of the warm climate, and the fact that most Downtown Los Angeles buyers usually have no children in school, the home buying season starts very early in Downtown. Most prospective home buyers wait until after the holidays, and then there is a mad rush starting January 2. All of these buyers become competition for each other, driving up the price.  The most dedicated home buyers will start in October through December as to take advantage of less competition, allowing the placing of lower initial offers and saving money on the final home price.

Get a list of loft lenders. Fill out the online form:

Find homes in Downtown Los Angeles:

LOFT & CONDO LISTINGS DOWNTOWN L.A.  [MAP]

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SEARCH LOFTS FOR SALE UNDER $400,000  |  $800,000,  |   $30,000,000
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Corey Chambers Realty Source Inc BRE#01889449

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Why Are People Buying Outside of Downtown Los Angeles? And What Are They Buying?

Buying a Real House – Loft Buyers Who Chose Single Family Homes

As prices in Downtown Los Angeles have already surpassed everyone’s expectations, and still continue to grow quickly, the average buyer can no longer afford the typical price in Downtown LA.  Over the last month, the lowest price loft in the Arts District was a whopping $850,000 (today there is a steal on a Barker Block loft with plenty of light and view for a mere $629,000). No longer a bargain basement of abandoned industrial buildings adopted by starving artists, Downtown is now a luxury neighborhood, a place of upscale urban vibe that offers real lofts, concrete, brick and authentic Downtown dining and entertainment experiences that you cannot find in West L.A.

With the $600,000s being the new floor price for Arts District lofts, more buyers in the $250,000 to $500,000 range are now looking at neighborhoods outside of Downtown for the right price on cool condos in fun neighborhoods.  When a prospective Downtown loft buyer ends up purchasing in a different neighborhood, they often still continue to aspire to eventually buy in Downtown. For those who cannot buy a Downtown dream loft today, buying a nearby condo or house is a stepping stone to allow the amazing dream loft to come true in the future. Buying in another great neighborhood protects the buyer from home price inflation. By owning another great home, the prospective loft buyer benefits from the higher prices, while most renters fall further behind the price curve.

Eager to get a better deal, they purchased homes located in the neighborhoods roughly between Downtown Los Angeles and Hollywood. They mostly chose houses with open concept kitchen-dining-living rooms, yet having traditional bedrooms with doors. Here’s what they have been buying instead when they did end up buying a Downtown lofts that they originally looked at:
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Pico-Union Neighborhood Adjacent to Downtown Los Angeles

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This newly rebuilt house is a lofty-little 2-bedrom with bonus room. Just 5 minutes to Downtown, the living area is open-concept with high ceilings and real wood beams all for about $100,000 less than comparable Downtown lofts.

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Melrose Hill, East Hollywood Neighborhood – Five Minutes to Fun Hollywood Nightspots

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Modern renovated small 2-bedroom single family home in East Hollywood, minutes to unlimited fun and excitement of Hollywood.

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Hancock Park Condo

Walk to dining and shopping on Melrose.
This clean. affluent neighborhood is a quick walk to dining and fun shops on Melrose.

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Glassell Park 3-Story House with Views of Griffith Park

Unable to find a large enough loft with balcony and view, the buyer opted instead to purchase this Mt. Washington 3-story house with pool, 2-car garage and grand vista of Griffith Park.
Unable to find a large enough loft with balcony and view, the buyer opted instead to purchase this large, Mt. Washington 3-story 3-bedroom house with pool, 2-car garage, entertainment room, grand vista of Griffith Park, and lots of windows and skylights.

Get more single family homes and condo alternatives to Downtown lofts in fun nearby neighborhoods. Fill out my Online Form.

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Copyright © 2015 This free information provided courtesy LAcondoInfo.com with information provided by Corey Chambers, Realty Source Inc, BRE#01889449 We are not necessarily associated with the home owner’s association, seller or developer. For more information, contact (213) 880-9910 or visit LAcondoInfo.com  Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.