Work in Santa Monica and have a 350k condo budget. Where to live? (Culver City: sales, foreclosure)

[TheGreatUnwashed]

Hello folks,

I've been living in LA for two years in the Palms Area (West LA, Culver City adjacent) and want to take advantage of the housing market. Even with things as bad as they are prices are still ludicrous on homes/condos.

I'm 29 and looking to buy with my GF in an area with stuff to do but admittedly feel that my current location is just too dang crowded. Keeping my commute in mind, what would you recommend on a 350k budget? Ideally i'd find the largest 2 BR condo I can get. Some co-workers have recommend Sherman Oaks as they know I'm a live-music fanatic and I have seen decent stuff around 300-350k there but the 405 commute scares me. What are you recommendations?

[BRinSM]

to keep a decent commute you'll have to stay on the westside. on the westside, palms and westchester are the most reasonable priced neighborhoods. if they are too crowded for you, then the valley would be the obvious choice, but as you mentioned, the commute would be no fun. anyways, check out westchester and see if that may work out better for you. just remember that the commute from the lax area to santa monica isn't going to be great even though it is a relatively short commute.

[readymade]

Originally Posted by tmblackflag

Hello folks,

I've been living in LA for two years in the Palms Area (West LA, Culver City adjacent) and want to take advantage of the housing market. Even with things as bad as they are prices are still ludicrous on homes/condos.

I'm 29 and looking to buy with my GF in an area with stuff to do but admittedly feel that my current location is just too dang crowded. Keeping my commute in mind, what would you recommend on a 350k budget? Ideally i'd find the largest 2 BR condo I can get. Some co-workers have recommend Sherman Oaks as they know I'm a live-music fanatic and I have seen decent stuff around 300-350k there but the 405 commute scares me. What are you recommendations?

Out of curiosity, what do Sherman Oaks & live music have to do with each other? (I'd always assumed that it was sort of "out there" with not much to do)

[disgruntled la native]

Originally Posted by BRinSM

to keep a decent commute you'll have to stay on the westside. on the westside, palms and westchester are the most reasonable priced neighborhoods. if they are too crowded for you, then the valley would be the obvious choice, but as you mentioned, the commute would be no fun. anyways, check out westchester and see if that may work out better for you. just remember that the commute from the lax area to santa monica isn't going to be great even though it is a relatively short commute.

LAX area to santa monica isn't the shortest commute, but it's not too bad. A straight shot up Lincoln, and Lincoln is congested but moves. Far better than living in the valley or hollywood and commuting to SM.

[JohnG72]

Don't buy.

To buy in downtown LA would cost me $1200 a month more than what I pay in rent for an equvalent unit. That assumes 20% down on the mortgage and also factors in the HOA. The benefits of the tax write off are marginal at best as I'd have to give up the standard deduction to itemize.

The ratio is even worse on the westside.

[TheGreatUnwashed]

Originally Posted by readymade

Out of curiosity, what do Sherman Oaks & live music have to do with each other? (I'd always assumed that it was sort of "out there" with not much to do)

Ventura blvd is supposed to be full of jazz/blues clubs with live music throughout the weeks.

[TheGreatUnwashed]

Originally Posted by JohnG72

Don't buy.

To buy in downtown LA would cost me $1200 a month more than what I pay in rent for an equvalent unit. That assumes 20% down on the mortgage and also factors in the HOA. The benefits of the tax write off are marginal at best as I'd have to give up the standard deduction to itemize.

The ratio is even worse on the westside.

What about long term sustainability? It'd be nice to own a place that is paid off when I retire and not have to worry about paying rent.

[NickelDime]

Originally Posted by tmblackflag

What about long term sustainability? It'd be nice to own a place that is paid off when I retire and not have to worry about paying rent.

If the rent vs. own ratio is off, I agree with JohnG72. Outside of this stupid bubble, prices have always leveled off at or below the rental for an equivalent unit. In many areas, that is the correction that has already taken place. Sounds like the westside has resisted thus far.

Sock the incremental monthly dollars away in a piggy bank and use that for an even bigger down when you are ready to buy - and get a 15 year mortgage.

That addresses your sustainability concern and will ensure you aren't upside-down for 10+ years. If you need any validation, go to one of those foreclosure tracking websites and check how many folks are in default. That's all 'shadow inventory' set to hit the market as distressed sales and will certainly pressure prices.

Think of a mortgage as a different kind of rent - you're renting money to buy a home. Either way, you're renting.

[JohnG72]

Originally Posted by tmblackflag

What about long term sustainability? It'd be nice to own a place that is paid off when I retire and not have to worry about paying rent.

Pocket the $1200 a month difference plus whatever else you would be putting it in savings. Put 40% down in a few years when you do buy instead of 20% since you've now saved an extra $14,400 per year. Double up on the now much lower payments or get a 15 year mortgage instead of a 30 year.

Or just keep saving, and have a much larger retirement than you anticipated and you won't have to worry about buying vs renting and won't be locked into living in a certain area.

[readymade]

Originally Posted by tmblackflag

Ventura blvd is supposed to be full of jazz/blues clubs with live music throughout the weeks.

Cool! I had no idea!