LAT- Gentrification in progress in South LA (Los Angeles, Inglewood: hair salon, leasing)

[genjy]

Originally Posted by Big L

I moved away a while ago, so forgive me if this is a goofy question:

How do people even afford the mortgage on a $450,000 home? That seems like a major strain on the family budget even with two incomes.

$450k isn't really a ridiculous amount around LA nowadays. My wife and I pay mortgage on our very modest ~$375k house, and we are admittedly middle-middle-class... we aren't rolling in dough. We even pay extra principle every month and still have money saved up.

I think we could probably afford a $450k mortgage if we had one.

[jamills21]

Originally Posted by Time of the Month

many people in los angeles are "house poor" (in waaaaaay over their heads when it comes to mortgages).

i've known countless people over the years with fairly nice homes, leasing brand new $70k cars, etc., who literally have to eat top ramen for lunch 'cause they're soo broke, credit cards are maxed out, etc.

this is way more common than you think. the savings rate in this country is virtually zero.

also, anyone buying a home in los angeles right now has ZERO financial sense. they are the same type of schmucks i was unloading to back in 2005/2006.

Midnightfapper is like a game of internet wack a mole

[munchitup]

Originally Posted by genjy

$450k isn't really a ridiculous amount around LA nowadays. My wife and I pay mortgage on our very modest ~$375k house, and we are admittedly middle-middle-class... we aren't rolling in dough. We even pay extra principle every month and still have money saved up.

I think we could probably afford a $450k mortgage if we had one.

What part of the city are you in again?

[genjy]

Originally Posted by munchitup

What part of the city are you in again?

SGV foothills

[munchitup]

Originally Posted by genjy

SGV foothills

Okay cool thanks!

[LABornandRaised]

Originally Posted by Time of the Month

these people are NUTS.

you see how their neighbors have bars on their windows? they're there, for a reason, why would any sane person take them off?

$50k says these people are setting themselves up for a home invasion, rape, murder, etc.

plus their kid will have to go to private school to even remotely have a shot at a decent education.

One thing I'll give you. Appropriate use of there, their and they're.

[jm1982]

Originally Posted by Time of the Month

many people in los angeles are "house poor" (in waaaaaay over their heads when it comes to mortgages).

i've known countless people over the years with fairly nice homes, leasing brand new $70k cars, etc., who literally have to eat top ramen for lunch 'cause they're soo broke, credit cards are maxed out, etc.

this is way more common than you think. the savings rate in this country is virtually zero.

also, anyone buying a home in los angeles right now has ZERO financial sense. they are the same type of schmucks i was unloading to back in 2005/2006.

A lot of people don't want to pick and choose and want it all. That usually doesn't turn out too well.

A lot of people probably do just get the most expensive house they can "afford", most expensive car etc.

An interesting thing on the savings rate..

After the financial crash, the U.S. savings rate trended up from a low of 1.5 percent in 2005 (and not much higher in 2006-2007) to a high of 5.5 percent. In 2011, it declined to 4.2 percent and further in 2012 to 3.9 percent. The first quarter of 2013, the personal savings rate was at 2.6 percent.

It's kind of sad we are trending down again. Who knows maybe in 2014 we'll already get back down to 1.5% again.
America's Savings Crisis: Your Spending Habits May Be to Blame

[West of Encino]

What about people who buy or own a home in LA without a mortgage. Is that possible?

[Gurbie]

Originally Posted by jm1982

It's kind of crazy that I'm LA now 500k homes are considered cheap , but I guess they could be when comparing to $1mill and above homes

There is the potential and those areas near USC such as West Adams do have some very nice Victorian homes .

I went to USC and it would be great to see the area improve further . I've seen the improvements with lots of new restaraunt options and the university village is being renovated with billions of dollars being spent , it will be the largest development in South LA

The truth is that development and improvement of this area could of come sooner but there are so many people fighting development .

It's a tough area from an investment perspective because it is a historical one too. I know someone that owns quite a bit of property that is USC adjacent and has struggled with the city for this reason .

It's great to preserve historical buildings, but a lot of them are severly run down too .

Being so close to downtown and USC is a benefit . Regarding crime it does seem high and of course there was the terrible incident recently of the chinese students killed .

Gentrification does usually end up lowering crime . I know there is quite a bit of anti gentrification attitude in the area , but I think it's silly and harmful to have that attitude and it just prolongs the enviable . There are also a lot of people that own their homes in this areas and they can benefit from this increase in prices . The renters are mostly protected under rent control too, for those ready to pounce that poor are getting pushed out of this area.

When I went to USC , so many people would say " isn't it in the ghetto " or "it's a great school but the area around it is bad "

It would be great if that mentality changed so that the longtime residents , students and everyone can be truly proud of this area with great history.

West Adams was once like Beverly Hills back in the day , with millionaires like the Dohenys and others living in what is now the Mount St Marys doheny campus and surrounding area.

We'll know the area is off and running when Curbed starts calling it by a cute nickname, like "SOLA". (I should bite my tongue).

[yby1]

South LA is changing. There is crime, but the majority of it is very street by street. Avoid the bad streets and you avoid most of the crime. The people moving in are also forming strong communities, which is how change is created in the neighborhood. I know that many West Adams residents are pushing to clean up the major corridors, especially the abundant amount of auto body shops in the area. I see lots of positive going on in the area. Makes me happy.