DTLA LIFE MAG #23 | NOVEMBER 2015 | Page 12

In Los Angeles County, the median income is $62,172. The current city data show that 39.9 percent of your income goes to a monthly mortgage payment, and 48.8 percent will pay for rent. It is becoming more and more expensive to rent a home versus purchasing one. The mortgage interest rates still very low have been part of this trend. However, the new lender’s guidelines are thought and require that home buyers have some savings in the bank. A 20 percent down payment on a median-valued home in the Los Angeles-Long Beach-Anaheim area would require a potential buyer to have saved an average of $109,580 if we use the Zillow Home Value Index. This index rose by 4.5 percent over the past year, to $547900. The lack of inventory in Downtown LA has created an increase in pricing that will continue for years to come. Apartments monthly rent have been increasing, and the several new luxury complexes that are about to open will make the average price of all rentals to rise in the next future. Pricing like San Francisco and even New York City will not be rare in Downtown LA soon, and it will be more difficult for an actual resident to stay in the center of Downtown. We hope that the city builds some affordable housing close by to create new neighborhoods where everyone can enjoy living in our great city. As an investment standpoint, this is great and very optimistic for everyone that can afford to purchase property now. Contact me for more information and help you find the place of your dream or your next investment. Alex LiMandri (213) 626 5433 [email protected] www.laloftsrealty.com