A week or two ago, I got the chance to take a look at a condo for a cool $390,000. Honestly, it was nice property in a very desirable part of town where old money is prevalent and the streets are lined with trees. Was it enjoyable? Most definitely. Did I snatch it up? No. Unfortunately, it was underwhelming. This place was on the market for several months now and the price has dropped four other times according to Zillow.
The realtor seemed anxious — a bit desperate. I don’t blame them. It’s the wild wild west out here in Los Angeles and getting potential buyers in this climate is slim to none. People who have missed rent for the past few months will be met with mass evictions once July is over. Everyone is counting on a rent freeze or a second round of stimulus checks, but I highly doubt it. Online gossip is just that — fiction.
Doing the standard 20% down payment would mean I need just $78,000 liquidated from all my holdings to call it mine and not deal with the bullshit that comes with extra mortgage insurance. While I could have used the government’s first time home buyers program, honestly — it sucks. The interest rates are higher and the extra mortgage insurance does nothing for your equity. I can see why it’s attractive for many buyers. With as little as 3% down, you’re in. There’s always a catch though.
This in my opinion makes no sense. Putting down so little for a higher interest rate and insurance every month doesn’t give a lot of confidence you have all your finances together — or more bluntly — you can even afford a place. Take what you will of this, but it sounds like an awfully quick way to have yourself scrounging for money every month to make the payment.
Fuck that shit.
I digress. I’m in no rush and the real estate market here looks like it’s cooling off for once after several years of exponential gains. Patience is key. Timing is everything. I have a very large number of assets invested in a real estate in a trust. While risky, I’m certain the gains out weigh the potential for losses. The government tightened up requirements for home buyers, which makes a second real estate collapse the likes of 2008 very unlikely.
Until next time. Later world.