If you want to live in Los Angeles, but can't afford the median home there, this article is for you.
The first step is knowing where you stand financially to take steps towards achieving your goal of owning a home! You don’t have to be rich or spend all your time working to own a house in L.A., but you do need some innovative strategies for saving money on housing costs and living within your means. We want to help you find those strategies so that owning a home becomes attainable for everyone who wants one, not just the wealthy few.
The median price of an LA home is $480,000, according to HowMuch.net. That’s more than the average family makes in a year. But there are ways you can make your money go farther and still live comfortably here.
Location Matters: Real estate rates in L.A are tricky because there is a vast disparity between wealth and neighborhoods. For example, you could find a Lynwood 3-bedroom home for far less than you would in Brentwood. The further away from the beach or city center you go, the lesser the house rates.
L.A Math: The HowMuch.net calculations estimate you need to make roughly $95,000 annually in order to afford the median home value of around 480k in L.A.
Savings: It probably goes without saying that you will need to save, save, save. For example, if the house you want is at a price range of $715,000 with an initial down payment of 20% and the return on savings after fees and taxes being 8%, then here are some estimates for how much you should save every day. For one year: Save $391.78 per day; for five years: Save 66.78$ per day. If you go for a 10-year saving plan, then that would only be 27$ a day. That means cutting out all you can do without in daily life.
Home Loans: Taking out a loan is another option. You could qualify for a loan going up to about 45% of your income. Also, if you contact a mortgage broker, you could find out if you qualify for any program that can help you attain the finances you need.
Los Angeles is a high price to pay, but for those who love it here, it’s worth every penny. L.A. gives back as much as it takes from its residents, with the city sporting so many of our favorite things: the beaches, palm trees, and all the Hollywood glitz and glamour. You can overcome all the challenging aspects of living in Los Angeles by being strategic, clever, and most importantly- really lucky!
Click here now if you want more information about affordable housing options near Los Angeles!