Great time to buy Luxury Los Angeles Real Estate. Headlines touted the infamous line once again that mortgage rates are at historic lows, inciting the burning question, "Is now the right time to upgrade my Los Angeles home to a bigger, better one?" Affordability is at an all-time high at many places throughout the country and if one has the ability to acquire and secure a mortgage, the cost of buying a home is better than it has been in years. That being said, wanting to move up and being able to move up are two different things, and it is a great time to take a hard, honest look at what makes sense for your particular situation.
Finances. If your current mortgage is a stretch financially then you should hardly consider taking on a larger mortgage payment. If you have a solid steady income and can afford more, it is a great time to start looking for a larger and nicer home in the Los Angeles area. Affordability is seen as housing costs taking up 30% of a household's monthly income; if a new mortgage will keep you there a new home makes sense.
Current home. Do you need to sell your current home to buy a new one? If you can hold on to your current home and rent it until the market is fully recovered, your investment can be sold at a bigger profit. This is especially wise if your current home can be rented for more than the mortgage payment every month. If you can afford this, you would be making money on your current home while paying considerably less for your new luxury home in Los Angeles.
It is not a wise idea to upgrade to a new home if it does not make financial sense for your future. If it does make sense, there could never be a better time to jump into a new home. It is a great time to discuss a possible move with a financial advisor or a qualified real estate professional. Please feel free to contact me with all of your real estate questions.
Click here to read a recent article from Realty Times regarding upgrading to a new home.
Sourced from: Internal Kinetic Real Estate Library
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