Is it the right time to buy a house in LA ? (Los Angeles: renting, mortgage broker)

[LA3yrs]

I live in Covina, LA county. I am currently renting and thinking of purchasing a home. I would like to purchase around Covina, which I feel is in the center of LA.
I currently work in Longbeach as a contractor. I have work opportunites in and around Torrance, Longbeach, Pasadena, Irvine, LA downtown, Woodland hills, Chalabasis and Tustin.

Since I am contractor, I am thinking of setteling in a place which is not very expensive and also from where I can go to all those probable workplaces in 1 hour to 1.30 Hr(Max).

Now my biggest Q is, Is it the right time to purchase an house ? Should I wait further ?

Any advises and comments on this one would be great.

[fastfilm]

LA3yrs, before the realtors and such chime in, I'll pass on the wisdom that others have relayed. In the same way that it's never the perfect time to have a baby, you should just plan for it and do it, similarly, it's never the perfect time to invest in a house, you should just plan for it (research, etc.) and do it. You will be glad you did. Good luck.

[Sorcerer68]

(now the Realtor chimes in)
Sellers are willing to deal now. You have a better chance now beating them up on the price and getting them to wrap closing costs, give credits, etc.

The Belmont Shore side of Long Beach is a very nice place to live. I love Pasadena, I'm sure you're familiar if you live in Covina. You have a pretty large spread, I'd pick the place you think you'll have the most work and get closer to it. If I had a lot of work in Torrance, South Redondo would be my pick although it's pricy.

Most important in buying a house: find a sensational mortgage broker. If you have good credit, go straight to the bank or Ditech or someone like that. Shop around. There are still sensational programs.

Good luck.

[NYSD1995]

you don't wait to buy a house. You buy a house to wait. :-)

If you can afford property, and you can plan to stay put long enough to make it worth the time, money, and sweat that comes with owning a house, do it.

[dutchie]

the time seems to be right.. prices may even drop a bit more in a couple of months however sellers are eager to buy.

having said that; LA is about location, location, location... rather buy a smaller place in an excellent location than a big place in a location that does not "feel" right... go there also by night, it may give you a completely different energy...

good luck !

[LA3yrs]

Originally Posted by Sorcerer68

(now the Realtor chimes in)
Sellers are willing to deal now. You have a better chance now beating them up on the price and getting them to wrap closing costs, give credits, etc.

The Belmont Shore side of Long Beach is a very nice place to live. I love Pasadena, I'm sure you're familiar if you live in Covina. You have a pretty large spread, I'd pick the place you think you'll have the most work and get closer to it. If I had a lot of work in Torrance, South Redondo would be my pick although it's pricy.

Most important in buying a house: find a sensational mortgage broker. If you have good credit, go straight to the bank or Ditech or someone like that. Shop around. There are still sensational programs.

Good luck.

Thank you for your couple of advices. I know that Long beach is a good place to live and I also worked in Pasadena. But they are all expensive, my comfortable budget is $450k. I am pre approved, as of now, by National mortagage for $460K.

I just started looking and I see most of the houses are priced at above 500k. You know, some of them are really worth for 500k and some of them are not.

I am really confused !!!.

[fastfilm]

LA3yrs, I'm posting the following not just for you, but for all relocators contemplating home purchases in L.A.:

"Los Angeles and Orange counties top the least affordable list for major urban markets in the world (italics mine) on the basis of the common financial counsel that owners should spend no more than one third of income for a place to live, according to Demographia, an international demographic and urban policy firm.

The median house price is eleven times the median household income in Los Angeles and Orange counties, according to the 2007 report. San Diego, at a multiple of 10.5, is followed by Honolulu at 10.3, San Francisco at 10.1, Ventura County at 9.4 and Stockton at 8.6.
Sydney, Australia, the least affordable market outside of the U.S., ranks above San Jose, which is just above London."
-from the L.A. Times, 2/18/07

So it's not just you, it's all of us. To read that we were more expensive for median homes vs. wages than Honolulu was a shocker to me too. Have you tried scanning Realtordotcom with your preferred Covina area? And have you worked with a realtor to find some "bargains?" They can accomplish maneuvers that we cannot. Good luck, I feel for you!

[Rats]

it's always the right time to buy a house if you can afford it. buying a house is the only investment you can make that guarantees you a long term appreciation. if a house is $500k today, it might be $475k next year but 10 years from now it will probably be much higher than $500k.