What's with the huge disparity with LA real estate? (Burbank: for sale, rent)

[dylan_505]

I've noticed how expensive houses are in LA right now from searching online and seeing that 500k doesn't get you too much these days.

What really shocked me was the huge difference in the quality of the houses between 600k and 800k. In a lot of areas 600k gets you an old, small fixer upper but if you stretch the budget to 800k-850k then you can get a really nice, spacious home in a pretty nice neighborhood.

I know 200k is a lot of money but I'm just surprised that it can get you a much nicer house.

[socal88]

LA is really expensive because people keeping moving here to soak up the year-round sunshine. There's a little more than that, but that's the gist of it.

I'm not sure about your observation that there's a big difference in 600k-800k homes. Could you provide an example of an old, fixer upper costing 600k and a nice home in a nice neighborhood costing 800-850k? What neighborhoods were you looking at?

Most really nice, spacious homes in nice LA neighborhoods are over $1M. That being said, you and I might have different definitions of what constitutes a nice, spacious home. I'd consider a spacious home to be at least 2,500-2,750 sq. ft.

If you're looking at nicer neighborhoods like parts of the west side and the hilly communities of the SFV like Encino and Sherman Oaks, there's essentially nothing under $1M that's more than 2,500 sq. ft. with the exception of a couple places built 40+ years ago.

[dylan_505]

Here's an example...

This is a 1,100sqft 2 bedroom 2 bathroom house in Burbank for $640,000 and its definitely a fixer upper

931 N Pass Ave, Burbank, CA 91505 | MLS #OC16029979 | Zillow

But for $799,000 you can get a 2,100sqft house which is a 3 bedroom 3 bathroom and also has been renovated.

2317 W Verdugo Ave, Burbank, CA 91506 | MLS #SR16042915 | Zillow

[Exitus Acta Probat]

Originally Posted by dylan_505

I've noticed how expensive houses are in LA right now from searching online and seeing that 500k doesn't get you too much these days.

What really shocked me was the huge difference in the quality of the houses between 600k and 800k. In a lot of areas 600k gets you an old, small fixer upper but if you stretch the budget to 800k-850k then you can get a really nice, spacious home in a pretty nice neighborhood.

I know 200k is a lot of money but I'm just surprised that it can get you a much nicer house.

In what sort of neighborhood are the 600k homes? And how do you define a pretty nice neighborhood? Would you post some examples for us?

[sailmotion]

Two words: "supply" and "demand"!

[seain dublin]

Originally Posted by dylan_505

I've noticed how expensive houses are in LA right now from searching online and seeing that 500k doesn't get you too much these days.

What really shocked me was the huge difference in the quality of the houses between 600k and 800k. In a lot of areas 600k gets you an old, small fixer upper but if you stretch the budget to 800k-850k then you can get a really nice, spacious home in a pretty nice neighborhood.

I know 200k is a lot of money but I'm just surprised that it can get you a much nicer house.

You're the poster who has several threads about moving to all different cities, why do you care about housing costs in LA?

Have you finally decided to move here? Do you have a job?

Baby steps, job first, rent a place not too far from the job, decide if you like LA and Southern CA to actually think about buying after at least one year.

You act like it's a shock to that LA real estate is so high.

[dylan_505]

Originally Posted by seain dublin

You're the poster who has several threads about moving to all different cities, why do you care about housing costs in LA?

Have you finally decided to move here? Do you have a job?

Baby steps, job first, rent a place not too far from the job, decide if you like LA and Southern CA to actually think about buying after at least one year.

You act like it's a shock to that LA real estate is so high.

My wife took the job in LA actually! We move in June.

Buying a house is in the future plans and I was curious to see what house prices are like in the LA area so I was researching. I'm not so much shocked in the prices of the houses, more just so the difference 150k can make when purchasing a house.

And your right about deciding if we like the city first. I've been to LA probably 20 times or more but there is a huge difference between living somewhere and visiting. I found that out firsthand here in NYC.

[jm1982]

I've noticed something similar .
One reason could be that less people can afford that extra $200,000 mortgage
Also the thing that is valuable in LA is the land . You could have a bigger house that is less per square foot so it could appear to be a better value than a smaller house
If you look for smaller homes for sale in LA often times the price per square foot will be considerably higher than per square foot versus a larger home .

If you look at homes in Houston for example you can find huge brand new homes for a fraction of the cost ...The land value is the big difference .,

[socal88]

These two homes are not even comparable. You're comparing apples and oranges.

The second home is almost 2x as large (2,100 sq. ft. vs. 1,100 sq. ft.). Of course it's going to be more expensive. In fact, I'd argue that the larger house should cost even more.

I don't understand the argument you're trying to make. You're picking two completely different homes and saying you're surprised that there's a difference between. Of course there will be a difference.

The old fixer upper is a cement box looking piece of garbage that probably needs 75-100k in rehab and a dilapidated backyard that's nothing more than a piece of parched grass.

The newer house has a good looking front yard (for drought resistant landscaping), a nice, modern interior layout and a backyard with a halfway decent patio with actual grass and some plants.

The $160,000 difference between the homes is very reasonable. In fact, the difference should be greater because of how much larger the newer home is.

[jm1982]

It sounds like the OP is saying the same thing . They are surprised that the bigger nicer homes don't cost even more .