We all want to buy a home. It’s touted as the American Dream. It seems to me your priorities might be a little off if that’s your biggest dream, but that’s another blog, right?
Los Angeles housing is oppressively expensive. Everybody’s friends east of Nevada have settled down in their two (sometimes three!) story houses complete with driveways, yards, AND multiple trees. Basically, the average Joe lives in a home that would cost about $5 million in L.A.
When these friends call to catch up, there is inevitably a point in the conversation where they exclaim, “You pay how much for rent?? That’s six times my mortgage payment!”
We want to say: “Really, jackass? Maybe that’s because your mortgage is in Crapville, New Jersey, and my rent is in Los Angeles, California. Gimme a call this January, let’s compare some weather notes.”
We do say: “Heh, well . . . that’s how it is . . . seventy degrees . . . Did you know the Chinese River Dolphin might be extinct?”
I guess we can call those same friends right now and ask how they are feeling about their property values.
We want to say: “Really? Less than what you paid for it. Imagine that.”
We will say: “How are the kids?”
Anyhooo, say you have a little nest egg set aside and you are wondering if the housing market has hit bottom. Dare you wait another few months to see if it goes lower?
Fortunately, I happen to have access to a guy in the real estate development field. He has agreed to answer questions and weigh in on a regular basis about the real estate market. Don’t ask me how I got him to do it. It involves a rooster, a spool of twine, three shotgun shells, a hammock, the left wing of a virgin bat, and, of course, a camera. Feel free to contact me with questions, and I will get him to answer them for all of us.
Today, I ask him: “Should I buy in downtown LA now? Should I wait? How long should I wait? Why should I wait? Why should I buy?”
Mr. Developer (who prefers to remain anonymous): “Woman. Give me those pictures back, or I’ll deflate your tires every day as long as I live.”
Actually, he really said:
“2008 should be a good time to buy because it looks like we’ll experience the low point of the market, which will probably come back in 2009.
“You’ll have stronger negotiating power with condos that are newly built or renovated but not yet sold. If they are complete, the developer is paying the HOA (home owners association) fee for each unsold unit. In addition, they are eager to sell to pay off the construction loan.
“You’ll want to wait to buy a condo under construction. Let them finish. See how sales go. Put yourself in a position to make an offer. At this point, the seller will be in the situation just described.”
So, if I had a spare $50K, I’d be all set. (sigh)
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3 responses so far ↓
1 jessica freeman // Jan 15, 2008 at 5:16 pm
Hello
I really enjoyed reading your blog. I agree with mr. developer in that2008 should be a good time to buy. I dont know if i agree that by 2009 it will go up, but i know for sure its going down now. i look forward to all the updates. I will add your blog to my favorites. thanks again.
Jessica
2 Bert // Jan 17, 2008 at 12:08 am
LMAO!! U r hi-larious! Plus good 411 on buying.
3 The Wingtip Report - Incentive$ | LA CityZine.com - Los Angeles // Feb 4, 2008 at 4:01 pm
[...] may recall a Wingtip Report a few weeks ago where Mr. Developer advised folks to wait for condo projects to open. Well, friend, [...]
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