market – Page 4 – LA Loft Blog

Never waste the opportunity offered by a good crisis. — Niccolo Machiavelli

REAL ESTATE NEWS — Here’s what may be the best intellectual analysis of a public health crisis: The Simpsons. #losangeles #realestate #coronavirus

Cascade of Crises: Today’s crisis leads to tomorrow’s crises. When a crisis occurs, many animals, including humans tend to panic, causing additional problems, sometimes more severe. Often these offshoot problems can be life threatening, such as suffocation deaths caused by sudden crowd panic stampedes. We’re fortunate that a toilet paper panic has been the most notable offshoot crisIs, but the U.S. may end up with serious economic and social damage caused by shutting down a large section of the economy. Some cascading crises can lead to massive tragedies such as World War 2, which was an off-shoot of the Great Depression. We can avoid panic ourselves, but the only way to cope with the panic of others is by being prepared with extra resources. That’s why keeping an extra stock of cash (including dollars, gold, silver and bitcoin), food, water, household supplies, first aid and other resources is basic common sense, and ultimately a necessity. This is just one more reason why it’s also common sense that most in the Greater Los Angeles Area have a plan for financial independence that includes real estate, with a suggested goal of $10-$20 million in assets, including $1 million in cash.

Reader Questions:

Q: What is happening with downtown los angeles corona vires? A: Downtown Los Angeles has undergone a shut-down of non-essential business and gatherings. Social distancing guidelines have been enacted, including closure of many social accommodations and amenities.

Q: Is los angeles real estate coronavirus a problem? A: Coronavirus has presented a challenge for the local economy by dramatically reducing the number of new real estate transactions, which had already dropped as much as 75% from the market peak a couple years ago in Downtown LA.

The L.A. Loft Blog is focused on reducing the negative economic impact of the current health crisis by uncovering hidden opportunities while helping to avoid mistakes.

FREE Special Report – 6 Mistakes to Avoid in DTLA
Get this free Downtown real estate report that will inform you about recent mortgage and loft loan changes. It’s called “6 Things You Must Know Before You Buy“. Fill out the online form:

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LOFT & CONDO LISTINGS DOWNTOWN LA [MAP]

Alta Lofts community does its part by temporarily closing some amenities to prevent virus.

Copyright © This free information provided courtesy L.A. Loft Blog and LAcondoInfo.com with information provided by Corey Chambers, Realty Source Inc, BRE 01889449 We are not associated with the homeowner’s association 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.

Downtown L.A. Gets Ready for Tough Times #recession #realestate

2- Story 1,700 Sq Ft Live/Work Loft at Alta Lofts Los Angeles

Because a very large number people in Downtown and the Greater Los Angeles Area are expecting and preparing themselves for the recession that will be under tremendous Fed influence, we will see two unexpected effects:

The recession will be big, but will be delayed.
The recession will be longer and more shallow.

The next recession (the first signs of which have already appeared) will be quite different from our 2008 recession. Because the U.S. federal government is mimicking the extreme central banking interference that has already been tested by Japan and Europe, our next recession is likely to be long and very slowly drawn out, something reminiscent of the “Lost Decade” (should be called Lost Decades) of Japan and the permanently pathetic slow growth of Europe. Rather than one huge stock market crash, this recession is likely to go more sideways with more, smaller crashes punctuated by unexciting upticks.

The cooling that we’ve seen in the downtown and L.A. real estate markets are signs of the coming recession, and they are also steps that Angelinos are taking to reduce negative effects while preserving capital for hard times and for taking advantage of future low prices. What LA residents and investors may not be ready for is the painfully slow duration of the next recession. Because the Fed has made it abundantly clear that they will interfere to more extreme extents, including near zero interest rates (that will encourage eventual negative interest rates), markets will not be allowed to crash freely any time soon, and thus will not soon be allowed to shake free the extreme inefficiencies caused by the extreme Fed bubble that effects all real estate, including DTLA.

Forbes recently reported on ways that financial industry influencers suggest to prepare for the recession. The articles points out the abundant talk in the U.S. about an inevitable recession. History shows that recurrent recessions are indeed inevitable. They vary and cannot be predicted. We only know that they come about every 6 years, and it’s already been more than 10 years since the last. A delayed recession creates pressure for a bigger, more serious financial crisis, or what the L.A. Loft Blog expects: a protracted economic funk. A global economic growth malaise has already been happening for several years.

Who’s Getting Ready for a Recession, and How

Buyers – While most considering buying a property have put plans on hold, a few are already taking advantage of the shifting market by placing several lowball offers to find that one desperate seller who will give the great deal.

Sellers – Home owners who do not have a large reserve of cash, and who don’t have much equity will consider selling early.

Flippers – Flip investors have begun to exit the Los Angeles market as their margins tighten. Flippers must make their purchases, renovations and sales faster, in days instead of months, in order to beat a sudden crash.

Real Estate Agents – With fewer buyers and sellers in the marketplace, there’s growing competition to acquire clients. Real estate agents will have to spend more marketing dollars to attract them.

Forbes says that the answer is to become a cash investor in order to take advantage of the growing number of motivated sellers, and to dominate the market for the best deals. To build cash, consider selling some current assets, raise capital from investors and build more relationships with more lenders early. Are you preparing for a recession? | COMMENT

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LOFT & CONDO LISTINGS DOWNTOWN LA [MAP]

Copyright © This free information provided courtesy L.A. Loft Blog and LAcondoInfo.com with information provided by Corey Chambers, Realty Source Inc, BRE#01889449. We are not associated with the homeowner’s association 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. | COMMENT

Tag: market

Downtown Los Angeles Real Estate Coronavirus

Los Angeles Prepares for the Recession

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