Rent Advantages

• May be cheaper than a mortgage payment
• Fewer (if any) maintenance costs
• No down payment required (less deposit)
• No real estate taxes (renters insurance optional)
• Less stress (who cares, it’s not yours!)
• Freedom to move or downsize when necessary
• No risk of home price depreciation
• Some utility bills may be included
• “Free” amenities such as pool, gym, security
• Money can be used for other, more profitable investments
• Can’t be foreclosed on

Rent Disadvantages

• Rental payment may exceed monthly cost of mortgage
• No ownership or wealth creation
• Payments never stop when renting
• Rent will rise over time
• Must deal with a landlord or management company
• No tax benefits
• Rules, regulations, and limitations
• More

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6 Reasons for Home Inventory Decline Applicable to Los Angeles Real Estate Market

  A recent blog post from the Wall Street Journal discusses six trends that explain the ever-decreasing number of homes for sale. Homebuyers experiencing frustration with the current Los Angeles real estate market should be aware that the following conditions are affecting housing inventory nationwide:

• Fear of a negative impact to their credit discourages most underwater homeowners from short selling.
• Some homeowners who would consider an upgrade to a more expensive home lack sufficient equity in their current residences to be able to afford it.
• Homeowners who do have equity believe market values will continue to rise and are opting to wait so that they receive the

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Are you trying to buy a property in the city of Los Angeles under $350,000?  

Having problems getting your offer accepted?  
Are you blaming your lazy Real Estate Agent for not working hard enough?  

While this may be true in some cases there are some important macro trends influencing inventory levels of Residential Housing in California that are having major impacts on the Los Angeles Residential Real Estate market and people trying to buy homes in Los Angeles.  Before getting pissed at your agent or frusturated with the process take a look at this well written article on doctorhousingbubble.com explaining some of the reasons the Los Angeles Real Estate market is experiencing such low inventory levels.

As of January , 2013, property managers and landlords in California are required to disclose in writing to any prospective tenants if a notice of default has been recorded against the property (Landlord in Default Form LID).  The law applies to rentals of single-family homes and apartment buildings of no more than four units.

The disclosure also includes a notice that if a new owner takes ownership of a property following foreclosure, the owner will not be able to evict the tenants for a least 90 days written eviction notices in many cases.

Supporters of the new bill say that such a disclosure is critical for tenants in making an informed decision about where to live.  Opponents, however argued that such disclosures could worsen the financial conditions…

Great blog post on DoctorHousingBubble.com recently discussing the true cost of commuting long distances to work:

 There is a lot more than just price of gas at hand:

 

• Maintenance
• Insurance
• Car Payments
• Parking
• Express Lane/Toll Road charges
• Opportunity cost of Time Involved (post brings up that people commuting far distances i.e.- travelling from outlying areas like lancaster, palmdale, san bernardino, riverside are essentially using an extra 8 hour day/week driving that they don't get paid for
• This is time that could be spent with family, friends, exercising, doing your hobby or actually working for pay

  I focus on selling city of Los Angeles Real Estate in the area from Hyde Park to Mount Washington, specifically these 11 zip…

(article via California Association of Realtors Newsline) 

 

Mortgage Forgiveness Debt Relief extended

Late Tuesday night (1/1/2013), Congress reached a settlement in the “fiscal cliff” negotiations.  As a result, the Mortgage Forgiveness Debt Relief Act has been extended for another year.  The measure will continue to exempt from taxation mortgage debt that is forgiven when homeowners and their mortgage lenders negotiate a short sale, loan modification (including any principal reduction), or foreclosure. 

C.A.R. would like to thank the 26,296 California REALTORS® who sent messages to their members of Congress and made 1,862 calls in response to C.A.R.’s Call-for-Action.

Also under the agreement, so called “Pease Limitations” that reduce the value of

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