When looking for fixer uppers, you want to focus your search on those up and coming neighborhoods that are filled to the brim with potential while still having affordable options to choose from. We know thats not an easy thing to do in Los Angeles. Let’s take a look at some strategies you can apply to your search.
When looking for a fixer upper in Los Angeles, it is always a good idea to start off in the older neighborhoods. The homes were built in the early 1900s and were built solid and dependable, so you have good bones to work with.
With developments such as the Crenshaw line and Whole Foods coming to the neighborhood, South LA is hot right now. As we live in work in this neighborhood we know everything there is to know about where to find a great, affordable fixer upper and we are happy to share with you how to create a beautiful modern vignette in these historic homes without losing the bones and charm of the property.
We are talking east of the LA river here, neighborhood such as Highland Park, Elysian Valley and even Echo Park still possess many diamonds in the rough.Highland Park is considered a historic neighborhood and was one of the first subdivisions of Los Angeles, and is inhabited by a variety of ethnic and socioeconomic groups. El Sereno
With the The Crenshaw/LAX Line from north-south serving this Mid City, this is a good neighborhood to put on your list when you are looking for a fixer. The area is highly diverse in both people as well as amenities, including the nearby world class museum LACMA.
Another location to check out is Sherman Oaks. It is located near the 101 and 405 freeways which give you quick access to Hollywood and downtown Los Angeles. This area is a quiet community with tree-lined sidewalks and its fair share of mom and pop shops further adding to its charm. This area has several fixer uppers still available, but with the rising popularity and demand for this appealing neighborhood, people are reluctant to sell their homes.
This is the neighborhood that is home to the infamous 2,700-foot mural called, “The Great Wall of Los Angeles.” Homes here are still affordable despite the many more upscale communities beginning to surround the area.Right now, there are still plenty of fixers to choose from. We consider this an up and coming neighborhood in LA. Everything is being renovated, updated, and sold off quickly.
In short, if you are on the hunt for a historic single-family home or something much trendier, you definitely want to check out these LA areas as soon as possible.
With a fixer upper, you are presented with the opportunity to make the home more valuable. Many times, you will find this kind of home at approximately 8 percent below market value. You will be paying less in taxes as well because the taxes are calculated based on your home’s sale price. So, how do you even go about finding your ideal fixer upper? Read on below for more information.
The Perfect Choice
It is often said that the perfect fixer upper is one that everyone will want to own in the future, but no one wants it right now. The location is going to play a key role in your selection. Make sure the home is in a desirable location or an up and coming neighborhood.
The layout of the home should also flow and have a good configuration to start with; otherwise, you may find yourself spending even more money to move and take down walls.
Choosing a Mortgage
When you choose this kind of home, there are different mortgage loans to consider because of the condition of the home. Renovation loans, for example, allow you to finance the home while also making improvements at the same time.
The improvements you make can then be paid off over a longer time and typically at a lower interest rate than with other types of financing.
Another type of loan is a construction loan. It is a more short-term option and often comes with a higher interest rate, but it provides the owners with the funds they need to build and renovate the property.
Before you can consider this type of loan, however, you need to find a qualified builder, have your minimum 20 percent down payment, and have the value of the property in its current condition appraised.
Since more and more buyers are looking to purchase newer and updated homes, you will find little competition when it comes to the fixer uppers that are available. However, instead of competing with other buyers, you are often competing with builders and investors which can drive the price up.
When choosing a fixer upper, make sure you understand your needs and make sure the home is what you are looking for. Depending on the renovations that need to be done, it can be a time-consuming project.
Finally, keep in mind that the property taxes will go up following the renovations because of its new value. If you remember all this info and you know where to draw the line, and you can envision the home’s potential, then you are ready to start your journey towards finding the perfect fixer upper.
Much like most real estate markets around the country the Los Angeles market is affected by lack of supply, affordability issues and fluctuating interest rates.
Our CEO and broker, Letty Vermeulen notes that for South LA’s Jefferson Park and West Adams neighborhoods she can definitely see a slowdown. Partly due to the past winter months which are always slower and partly due to a city wide slowdown.
However, the Jefferson Park and West Adams area are still in a strong position due to the central location and the area is quickly becoming a public transportation hub, making it a very competitive market for first time home buyers and experienced buyers alike. We are also noticing many new apartment buildings in development, often combined with new retail and restaurants.
If you’d like to learn more about the Jefferson Park/West Adams area, or general Los Angeles real estate market, please contact us!
California has spent the last several years as the most prosperous state in the country. In fact, California has the 6th largest economy in the entire world. This is largely driven by its innovative production, the heavy tech sectors in the state, and more.
But what about the housing market?
Throughout 2018, California had a robust housing market that was driven by smaller inventory numbers and higher demands. This, in turn led to increased prices throughout the state. However, prices have fallen in major metro areas including Orange County, San Francisco, and Los Angeles. For those investing in Los Angeles real estate, the market is better than ever.
2019 is set to be no different. Prices may still increase in certain areas throughout LA, but the Los Angeles real estate market is looking promising for buyers. Interest rates are rising, which leads to lower or stabilized prices in certain areas. And in areas where prices are expected to rise, it’s likely that those increases will still be lower than in other parts of the country.
In the past and in other areas in California, home prices spiked tremendously – increasing by as much as 23% in Santa Clara and 14% in the Bay Area. But Los Angeles says its prices remain the same over a monthly period, and home sales increased by 2.3%.
All of this means that while sellers will still be able to list their properties in an area that is likely to see strong sales numbers, buyers will also be able to shop in a market that offers competitive pricing and excellent rates. Talking to a local Los Angeles real estate expert is one of the best ways to find the best homes at the best price. The right realtor can help you find a home that matches your budget and ensure that you aren’t paying too much for a home in certain areas.
If you’re considering buying a home in the greater Los Angeles area, there really has never been a better time in the last few years. While the rising interest rates in the nation are worrisome, and while LA home prices may be increasing slightly over the next year, the fact remains that there are many homes available at fair prices. It truly is a buyers’ market, and taking advantage of it now is a good idea for home buyers as well as investors.