The LA real estate market is hot and more people are entering into the market than ever before. Interest rates are still low, property values soaring, and the economy is more stable. All factors that contribute to a prime time to purchase Los Angeles real estate. So, are you ready to buy? Take a look at a few considerations to help you decide.
Home ownership is tempting to every individual, but before you take the jump into home ownership, your lifestyle should be considered. Do you plan on being in the area for more than a few years? Will you be able to support your lifestyle with the purchase of a home, or will your home become your prison?
Typically, if you pay 35 percent less on rent than you would should you purchase an LA home for sale (this includes mortgage, HOA fees and property taxes), then your best bet would be to rent.
To purchase an LA home for sale, you need to consider your funding. Is your credit in good enough shape for you to take advantage of the current low interest rates? If not, then get it into shape first. Your cash for your down payment and closing costs also needs to be considered. As a rule of thumb, your monthly mortgage payments should not be higher than 36 percent of your gross monthly income.
Knowing the market is essential, and here a Los Angeles real estate agent will be your best asset. Hire an agent that has the experience in the LA real estate market and one that is familiar with the area you would like to purchase.