Los Angeles Market Update: the Chaos in LA- No homes for sale and Rents are skyrocketing, by Adrian Bates.

By Adrian Bates

The Chaos in Los Angeles

No homes for sale and Rents are skyrocketing

Did you know that over half of California’s renters spend more than 50% of their monthly incomes on rents alone!

Does this sound familiar to you? Well if it does, you are not alone, in fact, this is the reason why I am writing this guide to set you free and on a path to financial freedom.

The best part is … I will show you how to qualify for a home loan with 0 percent down. It seems impossible, right?

Let’s get started.

Financial experts recommend keeping the total amount of your income for housing at 30 percent. That means, the portion of your monthly going to rent or mortgage payments should be no more than 30 percent. Earlier, I mentioned a term that I know most of you are familiar with, ‘cost-burdened.’ , What does it mean?, How can you tell that you are costburdened? , How does it affect your future?

Well, if you are spending more than 30 percent of your income on rent or housing, you are costburdened. According to a report by Apartment List, the national average rate for renters experiencing this problem was 49.5% as of 2017.

Right now, the house prices are surging like never before. Rent too is joining in the frenzy breaking and setting new highs. the share of people spending more than 30 percent of their incomes on rent has risen dramatically.

In fact, nationally about 38 cities are experiencing a rise in the number of people who are costburdened. That means about 12 percent of

households are now severely cost-burdened. The sad part is, almost half of these cities are in California.

Data from SmartAsset, a FinTech company released its May 2019 Report that found that US cities have the most severely cost-burdened households.

To determine this, the company analyzed the 2017 Census Bureau’s data. With the data, the company took the households that were severely costburdened in 126 cities. The company then ranked each city by the percentage of households that used at least half of their income on housing.

It found that 17 cities with households severely cost-burdened are in California. Our beautiful city of Los Angeles was 3rd on the list at 18.50 percent after New Jersey and Florida respectively.

Can you imagine that? 18.50 percent! Oh, and by the way, this percentage is for the homeowners! When it comes to the share of renters severely affected by rising rents in LA county, we have almost 60%.

However, there was a period where the share of renters being affected by huge costs declined. That was in 2017 where it declined from 58.3 percent in 2016 to 57.8%. This was large because incomes were catching up to the rents.

Today, because of the pandemic, the situation has only gotten worse!

Now that you understand what being a cost burden means, and the situation on the ground, you must be wondering, will it ever get better? The simple answer is, not any time soon… Before the market corrects itself, it’s going to take some time; the inventory is insufficient to level the demand which is putting upward pressure on prices and until that happens, rents will keep rising.

So what can you do? Buy! Buy! Buy! Your landlord doesn’t want you to know every time you are cashing in that check to him for the rents, you are increasing his equity, his value, his wealth. Your landlord doesn’t want you to know that when you buy a home, every mortgage payment you will be paying will be helping you build equity for that home.

Most renters are stuck in this vicious cycle because they’ve been made to believe that there are not enough homes to buy in the market. Yes, supply is tight but have you talked to a real estate agent to get a clear picture of what is going on?

There are enough homes for everybody and the best part is, you don’t even have to worry yourself with a down payment or closing costs.

That’s the main fear most renters have. Let me worry about that for you. You see, many renters don’t know that there are numerous programs that offer assistance in closing costs and down payments.

Before we get into how you get the zero percent downpayment, let me introduce you to CalHFA and GSFA which are state-run housing assistance programs.

California Housing Finance Agency (CalHFA) has a program MyHome which offers a deferredpayment junior loan of an amount up to the lesser of 3.5% of the purchase price or appraised value to assist with down payment and/or closing costs, with a cap of $11,000, and that’s for FHA Loans. For USDA and Conventional loans, MyHome offers a deferred-payment junior loan of an amount up to the lesser of 3% of the purchase price or appraised value to assist with down payment and/ or closing costs, with a cap of $11,000.

Lastly, for the VA loans, MyHome offers a deferredpayment junior loan of an amount up to the lesser of 3% of the purchase price or appraised value to assist with down payment and/or closing costs.

On the other hand, Golden State Finance Authority has created a program called the Platinum Program, which provides low-to-moderate income California homebuyers with down payment and/or closing cost assistance to help them achieve their goals of purchasing a home.

GSFA’s Platinum Program provides applicants with

down payment and/or closing cost assistance in the form of a non-repayable grant up to 5 percent of the total loan amount. This is a gift in the true sense, which means it is not a second mortgage, does not create a lien against the property, and there are no terms for repayment.

Sounds interesting right? Well, it is. Adriane Bates has helped so many people get into their first home, my question to you is, what are you still waiting for? If you want to find out more about how you can qualify for a mortgage with absolutely zero percent down, why don’t you talk to the man behind this magic? Eric Lawrence Frazier MBA, a mortgage professional with over 30 years of experience. You can reach Eric at 800-261-1634 ext. 703.

ABOUT ADRIAN BATES

Adrian Bates graduated from Cal State University with her B.A. in Psychology (Business Management minor) in 1980. The former aerospace contract negotiator became a real estate sales agent in 1985 and then a broker in 1990.

In April of 1995, property sales across America were on a serious downturn, yet a young and determined Adrian Bates opened A-1 Realty in Los Angeles, CA. With her fortitude and divine help from God above, her team two grew into a team of eleven agents by November 1996. To read more and to connect with Adrian, go to; https://www.thepowerisnow.com/adrian-bates-2/

ABOUT THE POWER IS NOW MEDIA

The Power Is Now Media is an online multimedia company founded in 2009 by Eric L. Frazier, MBA, and is headquartered in Riverside, California. We are advocates for homeownership, wealth building, and financial literacy for low to moderate-income and minority communities. The Power Is Now Media corporate office is located at 3739 6th Street Riverside, CA 92501. Ph: 800-401-8994 Website: www.thepowerisnow.com.

Sources;

https://calbudgetcenter.org/resources/californians-parts-state-pay-can-affordhousing/ https://journal.firsttuesday.us/over-half-of-california-renters-are-costburdened/66115/ https://www.businessinsider.com/california-leads-us-cities-most-cost-burdenedhouseholds-2018-8?r=US&IR=T#2-jersey-city-new-jersey-37