Help! Budget of 600k-- on what type of house/neighborhood should I spend? (Los Angeles: apartment, to rent)

[ananas]

I'm looking to buy a property. I thought I knew what I wanted, but am now so terribly confused! my budget is 600k and I'd like to buy in the LA/metro area-- but here are my concerns

(1) I'm single, no kids, no hubby, just me: so I'd like to be in an area that is residential, yet still close enough to an urban/hip/trendy area -- I'm afraid I might die of boredom in an area that is too residential. Since I work downtown (and my budget eliminates me from anything bigger than a cubicle in West LA), I figured Pasadena and Burbank (above Glenoaks), possibly Toluca Lake are great areas -- residential feel yet still trendy. ANy other areas come to mind?

(2) I've been getting all kinds of advice-- and now Ifeel like a spider caught in a web. I've been told not to spend 600k on a townhouse 'cos I'd never be able to resell it for more than that. Instead, that I should spend a little more and get a duplex type SFR house for about 800k, then rent out the extra unit to help with my mortgage. The problem is that 800k duplex in Burbank or Pasadena is nothing to write home about --so while this may make better investment sense, it is quite sacrifice on comfort. However, a 600k townhouse is quite comfortable; but, I don't want to get stuck with a townhouse I can't resell. WHat do people think?

(3)I've been told to simply look outside of Burbank and Pasadena and I'd be able to find a house for about 600k. However, I'm afraid the only areas I'd be able to spend abou 600k on a nice house are in the middle of nowhere and not close enough to my downtown job.

(4) other's say simply to wait another couple of months and prices will drop on townhouses. But I'm also afraid interest rates will go up.

What would you do if you were me? Any advice/thoughts would be appreciated. Thanks!

[Jonah K]

Originally Posted by ananas

What would you do if you were me? Any advice/thoughts would be appreciated. Thanks!

With a budget of $600K, I'd spend around $200K on a small condo in Hawai'i, another $200K on a house in Texas, and $200K on a balanced stock portfolio that pays dividends. Working in downtown Los Angeles wouldn't even cross my mind (unless the job paid at least $250K per year).

[ananas]

Thanks for the advice -- but not really a possibility for me. My job doesn't pay $250k, but very close (with bonus). Besides, I actually like my job -- at least for now.

So scratching the condo in Hawaii possibility (as beautiful as Hawaii sounds), any other suggestions?

[artichoke63]

Here's a suggestion. Rent, don't buy. The market is going downhill, and you'll only lose money and end up in negative equity. I would no way buy property in Los Angeles now. It's nuts. I saw a two bedroom condo, which wasn't too long ago an apartment, selling for $900,000 in Beverly Hills. I mean, what a joke. Any sane person would just rent something similar for $2,500 a month.

Artie

[miracle]

600k, single, Whoah!! you are a true and real Westsider, some condos in Hancock Park/Wilshire are very upscale and not small. Very good area, close to Hollywood, Downtown and Beverly Center.

Also try, condos in Beverly Center/Miracle Mile, excellent services in and around.

No residential single home for less than 700-800, not in Westside, the Hills or Hills area of the Valley (Studio, Sherman, Encino), if you want a single house in that range try in a not only married with kids area try Beverly "flats"/but old houses, if you want sth new and residential try Pasadena, but still very expensive for houses. Torrance a southbay with no beach...city close but not enough far to SouthCentral worth it, many services and close to beaches, malls, and many young people.

[joeyla91601]

HELLO
TRY TOLUCA WOODS WHICH IS EAST OF CAHUENGA SOUTH OF BURBANK BL

Originally Posted by ananas

I'm looking to buy a property. I thought I knew what I wanted, but am now so terribly confused! my budget is 600k and I'd like to buy in the LA/metro area-- but here are my concerns

(1) I'm single, no kids, no hubby, just me: so I'd like to be in an area that is residential, yet still close enough to an urban/hip/trendy area -- I'm afraid I might die of boredom in an area that is too residential. Since I work downtown (and my budget eliminates me from anything bigger than a cubicle in West LA), I figured Pasadena and Burbank (above Glenoaks), possibly Toluca Lake are great areas -- residential feel yet still trendy. ANy other areas come to mind?

(2) I've been getting all kinds of advice-- and now Ifeel like a spider caught in a web. I've been told not to spend 600k on a townhouse 'cos I'd never be able to resell it for more than that. Instead, that I should spend a little more and get a duplex type SFR house for about 800k, then rent out the extra unit to help with my mortgage. The problem is that 800k duplex in Burbank or Pasadena is nothing to write home about --so while this may make better investment sense, it is quite sacrifice on comfort. However, a 600k townhouse is quite comfortable; but, I don't want to get stuck with a townhouse I can't resell. WHat do people think?

(3)I've been told to simply look outside of Burbank and Pasadena and I'd be able to find a house for about 600k. However, I'm afraid the only areas I'd be able to spend abou 600k on a nice house are in the middle of nowhere and not close enough to my downtown job.

(4) other's say simply to wait another couple of months and prices will drop on townhouses. But I'm also afraid interest rates will go up.

What would you do if you were me? Any advice/thoughts would be appreciated. Thanks!

[wall st kid]

You sound like you need to rent.

Look at it this way.

A 600k house in LA isn't anything to write home about no matter what area you live in. You can rent a place like that for 1500 a month probably.

But, if you have a nice bankroll, you can probably rent a place for 3k a month....which would be a place that would cost you at least a million to buy.

So, you can get to live in a million dollar home in the prime years of your life.

The classic argument that people make is, "why throw money away on rent" But, even if you buy, you are throwing money away on mortgage interest. Even if you buy a home, you're still renting. You are renting the money.

If you rent a property, you have flexibility to, every year or so, move around to see where you want to live. If you rent money, you are stuck.

Buying, especially at this time, is a total pain in the butt. Property in LA has really very little appreciation value left, the lemon has been squeezed dry.

[montevista1]

wall st kid interest is a tax write off. true rent is a joke compared to buying, but buying you have tax benifits and potential appreciation.

[montevista1]

if you have the time buy in burbank something as small as possible with a nice size lot and expand. Even if it is 700sqft built in the 1950's this way you can buy a house instead of a townhouse.

[artichoke63]

listen to wall st kid. He's got it right.

Read the news. Prices are dropping in L.A. and some predict they may drop as much as 40%. if you want to spend $600K on a one-bedroom apartment that is worth $400K in two years from now, be my guest.

Artie