I’m 35 And Want to Buy a House in LA: What Do I Do?

Buying a house in LA

Here’s an interesting fact: in 1980, about two-thirds of Californians who were ages 35 to 45 owned a home. By 2021, only about 40% of Californians in this age group were homeowners. The average age that people become homeowners in California is 49, the highest of any stage. However, if you lived in Arizona, you’d have a 50% chance of being a homeowner by age 35. 

If you’re 35 and want to own your own home in Los Angeles, you need to be creative in order to escape becoming a negative statistic. Fortunately, there are a number of steps you can take to become a homeowner at 35.

First Steps: Build Your Credit

Your credit score will impact the types of loans and interest rates that you can get. Older adults tend to have higher credit scores than younger people, but there is no hard and fast rule that says you can’t build your credit score at age 35. You will want to achieve a credit score of 700 or better before you enter the mortgage loan process. 

Is this fair? Of course not. But it’s the reality; however, an experienced mortgage loan broker can offer you a choice of loan program which can fit your budget, goals and needs.

Second Steps: Establish a Budget

RentCafe reported that the average apartment rent in Los Angeles was $2,742 as of August 2023. At about 7.1% interest, a 30-year fixed rate mortgage for $350,000 would have a monthly payment of about $2,359. 

There aren’t millions of homes in Los Angeles County selling for under $350,000, but there are a number of smaller homes, townhomes, and condos available for modest purchase prices. You may also be able to find them in up and coming, desirable neighborhoods. 

Third Steps: Get Pre-approved

You have probably heard about houses selling for more than  their list price, and also about people buying homes with cash-only offers. You can avoid disappointments when you’re ready to make an offer to buy a home by getting pre-approved for a mortgage.

Next Steps: Work with a knowledgeable real estate professional

It seems easy to look at houses online. Nearly every home search website has a mortgage calculator built-in, and it will also show you pricing history for the home you could be interested in. However, there are many aspects of buying a home which aren’t usually covered by online advice sites and mortgage companies. 

You’ll get the best deal and find the home that’s right for you by working with a human expert. Fortunately, California Platinum Realty and California Platinum Loans have you covered. 

Sources:

RentCafe. “Los Angeles CA Rental Market Trends.” url: https://www.rentcafe.com/average-rent-market-trends/us/ca/los-angeles/

Wagner, David. “Homeownership Rates Are Plummeting For Younger Californians (And No, It’s Not About Delayed Marriage),” LAist, 8 May 2023, url: https://laist.com/news/housing-homelessness/housing-homeownership-home-buying-rates-young-california-terner-center-berkeley-study

Yale, Aly J. “Your Credit Score Affects Your Mortgage Rate—Here’s How to Improve It.” Wall Street Journal BuySide, 22 February 2023, url: https://www.wsj.com/buyside/personal-finance/mortgage-rates-by-credit-score-287bb3d8

California Platinum Loans

  https://californiaplatinumloans.com

Get The Scoop: How To Find Today’s Hidden Hot Neighborhoods In Los Angeles

dtla

With Los Angeles home prices averaging over $700 per square foot and the median sold home price of almost $1 million as of August 2023, it’s important to get the most out of your home buying dollar. One way to maximize your investment is to buy in an up-and-coming neighborhood. According to Realtor.com, an up-and-coming neighborhood is one that isn’t the best-known or most-popular, but has potential for rapid growth.

Another word for up-and-coming neighborhood is “transitional.” That means the neighborhood is transitioning from more affordable, and possibly with fewer amenities, to a high-priced neighborhood with many amenities and desirable qualities.

Los Angeles has been compared to a small country, with over 400 neighborhoods. We’ve chosen a few that qualify as up-and-coming for you to consider.

Palms: A Small Corner of the Westside

Palms is adjacent to several better-known neighborhoods on the westside of Los Angeles. According to California.com, the average age of Palms residents is slightly over 30. That makes Palms an interesting choice for younger professionals. As Palms is near Culver City, you will find a lot of film industry professionals in the area.

Playa del Rey and Playa Vista

Also on the westside, and sometimes included as part of “Silicon Beach,” Playa del Rey and Playa Vista are close to the beach as well as LAX. These neighborhoods have very different characters, with Playa del Rey’s homes tending to be unique mid-Century models to contemporary coastal homes, and Playa Vista primarily including newer condominiums. 

Beverlywood & Cheviot Hills

A famous writer, Ray Bradbury, lived in Cheviot (aka “Chevy”) Hills for years. In more recent years, celebrities like Jennifer Aniston and Sylvester Stallone have had homes in this small, peaceful, yet hip neighborhood that’s adjacent to both Beverly Hills and Beverlywood. Both neighborhoods have ample amenities and manage to blend a suburban feel, including parks and golf courses, with urban amenities like upscale restaurants and charming boutiques.

These are just a few of several dozen up-and-coming Los Angeles neighborhoods. You can locate other “hidden gems” and neighborhoods with potential by working with real estate professionals who are “in the know,” like California Platinum Realty.

Sources

Bungalow. “The 9 Best Neighborhoods to Live in Los Angeles.” url: https://bungalow.com/articles/best-neighborhoods-in-los-angeles-california

Kouyoumjian, Natasha. “The 9 Newest Up-and-Coming Los Angeles Neighborhoods,” California.com, 19 November 2022, url: https://www.california.com/the-newest-up-and-coming-los-angeles-neighborhoods/

Realtor.com “Overview: Los Angeles Home Prices,” url: https://www.realtor.com/realestateandhomes-search/Los-Angeles_CA/overview

California Platinum Loans

  https://californiaplatinumloans.com

Mortgage Rates Over Time: Are Today’s Really The Worst For You?

Mortgage rates

We continue to see changes in the home buying and mortgage loan markets because of rising interest rates. The Fed has been increasing interest rates since 2022 to help reduce inflation, which reached over 8% last year. 

If we look at mortgage rates over time, we can see that the low mortgage interest rates we saw between the 2010s and 2020 were unusual. In 1990, the average mortgage interest rate was 10.13%. In 1979, the average mortgage interest rate was over 11%. Let’s look at mortgage interest rates in recent decades.

Mortgage rates during the 1970s

The 1970s started out with mortgage loan interest in the mid-7% range, similar to today. People remember the 70s as a decade for roller disco, leisure suits for men, and the rise of fast food restaurants. The decade ended at an interest-rate high of 11.2% in 1979. 

Mortgage rates during the 1980s

The 1980s began with a lot of economic disruption. The U.S. was in a recession and also experienced high inflation. If you think mortgage rates are high now, imagine being around in 1981, when they topped 18%. By the mid-80s, rates had declined, and averaged around 9%. The 80s ended with mortgage interest of 9.78%, just under the 10% mark.

1990s mortgage rate trends

The 1990s were known as the first dot.com era, with a lot of excitement and investment in the early internet. “You’ve got mail!” was the greeting for America Online and the title of a popular movie. The upswing in the economy combined with more consumer confidence, and interest rates shifted downward. The decade started with interest rates at or near 10%, but it ended with a 6.94% interest rate in 1999.

Early 2000s mortgage rates

In 2000, mortgage rates reached 8.05%, but declined to about 5.5 to 5.9% in 2003. Many new homes were built, but the 2008 worldwide mortgage crisis led to a recession that affected home prices and lives around the world. Short-term interest rates reached zero at one point. By the end of the decade, mortgage interest rates were about 5%.

Mortgage rates after 2008

After the mortgage crisis began to work itself out, interest rates entered a lower level than they had been before. Since the 2010s, we became accustomed to mortgage rates ranging between 3% and 4%. During the 2020 pandemic, interest rates were very low. Since that time, we’ve seen increased up to today’s average of slightly over 7%. Interest rates may continue to rise, but there’s a good chance they will never reach their shocking peak of over 18% in 1981. Working with an experienced loan professional can help to navigate mortgage interest rate ups and downs.

Sources

Caginalp, Ruben. “Historical mortgage rate trends: 1970s to 2023,” Bankrate, 20 July 2023, url: https://www.bankrate.com/mortgages/historical-mortgage-rates/

Graham, Kevin. “Historical Mortgage Rates 30 Year Fixed,” Rocket Mortgage, 22 June 2023, url: https://www.rocketmortgage.com/learn/historical-mortgage-rates-30-year-fixed

California Platinum Loans

  https://californiaplatinumloans.com