What is the future of the city can hope to residents of Southern California for the next year? Here's what to optimize depending on market trends and planning projects. There will be increased prices and the increase in congestion that accompanies the deterioration of the quality of life. Author of the blog "Dr. Bousing Bubble", as a clearly expressed, it is possible to note: You can also hope to become "sardines"; in the future, ruthless and cramming minded price.
Then blame two factors: continuous demand for housing and a willingness to continue the very rich pay money for construction costs, which would require at least three well-off life. One family house today is a nice story in the sky. The plot in San Francisco – actually cabins – will cost as much as a mansion outside the X & # 39; Euston, or even a good home in Irvine or Villa Park. Selecting family homes in Irvine, Manhattan Beach and Santa Monica almost as bad. Of course, there are bad in California cities and rural lands, where prices are static and you have more space to breathe. But you want to live there …
Even in these poor areas of the state came to the housing affordability problem by subsidizing the construction of affordable housing at the expense of bond funds, tax credits and other resources. However, these programs accounted for only a small proportion of all new housing being built every year, and they also can not meet the housing needs of the majority of workers and lower middle-class Southern California.
Market forces – foreign investment, strong customer advantage for family houses & # 39; and and a limited number of well-performing school districts – this is the second factor that leads to this appeal and high prices. And then in California planned planning regime that rejects the sites that do not from the & # 39 are "green" (at least, not "green", and they jump on the more dense). construction at the expense of domestic housing in public indoor spaces.
In many regions of the cities with a high density, such as Los Angeles, building massive skyscrapers there – rather like towers – in a few select areas "transit orientation". Planners say they are trying to get rid of super density. In the wealthy will continue to play yard, a barbecue and swimming pools. Which brings us to another point:
The gap between rich and poor (or less destitute) has never been greater in Southern California
The poor live in the same locality. Lifestyles of the rich and housing prices maintain their distance. In the office of Legislative Analyst (LAO), which is a & # 39 is an advisory agency under the laws of California, it was said:
Accommodation in California for a long time is more expensive than most of the rest of the country. However, since about 1970, the difference between housing prices in California and prices in other countries began to expand. In the period from 1970 to 1980 in California, housing prices rose 30 percent above the US level to more than 80 percent. This trend continued. Today, the average home in California is worth 440,000 US dollars, which is two and a half times higher than the average price of the house (180 000 dollars). In addition, the average monthly rent in California is about 1240 dollars, which is 50 percent higher than in other countries (840 per month).
Property prices in the most popular areas of Southern California for the past two years, for example, in the districts of Orange and Los Angeles, grew at a rate of more than 10 times the meager increase in weekly payments. Now you can not buy a house in Orange County or West Los Angeles without the three-digit income, and in the central part of Los Angeles to forget about it. The surrounding areas are not much better.
The biggest losers – the seven & # 39; and the workers and the middle class (which, basically, minorities) who want to bring up the seven & # 39; and in beautiful areas with a load of grass and fields. Unfortunately, most of them are forced to give up such dreams. Besides the fact that South Los Angeles, which has become a high-density population, it is useful to them all his life to accumulate enough money to buy in the city "can of sardines."
Until now, the young owners of housing for middle-income, especially the seven & # 39; families living on the edge. In 2015, reports have shown that indicators of households in the region Riverside-San Bernardino more than 25 percent higher than in Los Angeles County, Orange. Minority in these areas is also much better. The level of home ownership in the country for a quarter higher among African-American and Asian households. Rate for Latinos is almost twice higher than in the Los Angeles-Orange.
But now, housing prices have soared – rising – and these areas are also becoming available. Three of the most crowded areas – taking into account the number of people – are located in Los Angeles County: South Los Angeles, Pick Union area near downtown LA and Huntington Park. Southern California tracks only Miami, Florida, for the largest percentage of people who spend 40 percent or more of their income on rent or a mortgage.
In short, Southern California has learned one of the highest spots of the nation's price. Now stay there costs two and a half times the national average, while rents in these areas is 50 percent higher than in the country as a whole. Property level home is now at the 48th place among the states.
Where do we go from here?
Some resourceful and novice people who want to fix or buy a home, found a way out by turning to alternative lenders in commercial or residential sector. Avoiding banks due to bad credit history or reliability, but still wanting to live in Los Angeles, these middle class people have turned to alternative sources of credit.
These commercial or residential private lenders (otherwise referred to as hard money investors or bridge) offer a preference evaluation of the property of the borrower, rather than its credit history, which means that if the borrower has a particularly promising house that he or she wants to connect. Borrower can continue to benefit for the borrower to sell. The process quickly and conveniently. Many people believe that it takes at least a week. There is a certain credit score, but it is much smaller than bank wire, and the whole process andartyngu carried out in a timely and user-friendly as possible. This is one of the advantages of proximity hard money or private lenders; personal system. The lender of the borrower meets requirements.
The high rate of interest and balloon discourage many potential borrowers, but Southern California is overrun with money-lenders who allow spewing commodity prices.
Saying that, if you're one of the millions of people who want to find a home in the "Sardinian city" and perhaps avoid Zubrovka – there is another option for you. Private commercial or residential lenders money otherwise known as hard money or overcoming investors.
How about this?