Wondering how to afford a home in SoCal? We've got some advice
Just under a third of LA households can buy a median-priced home. Five years ago, more than half of them could. What happened?
What financial advice are you looking for in the next installment? Call (626) 470-7519 or email TakeTwoShow@kpcc.org
News flash: it's getting more and more expensive to live here in Southern California.
Many of you probably knew that already, but to give you a concrete idea, here's a new statistic from the California Association of Realtors: less than a third of households in L.A. County can afford a home at the median price of $485,000.
It's a stark change from just five years ago when a median-priced home was within reach of more than half of L.A. households.
What if you want to buy a home in this environment?
We've got some advice from financial planner Delia Fernandez.
You're in your 20s
The younger generations are really known for loving to eat out and for spending their money on travel rather than necessarily homes.
But if they do want to buy a home, they probably should spend more time cooking at home and some time saving.
They need to organize their budgets so that they can afford to pay that mortgage and property taxes and insurance.
You're in your 30s
They need to educated about the home buying process, itself, and what they could actually qualify for in terms of a loan.
They're often more serious about getting started with a family, so they can go to their local bank or loan officer about how much they might quality for.
There are tools on sites like BankRate and Zillow that are free and are educational tools about how to buy a house and what you can afford.
You're in your 40s or older
If you have a steady income, it really might be to your benefit to buy a house with a fixed mortgage.
One of the things I worry about is when clients retire, the rent keeps going up but your retirement income does not necessarily keep up with that.
So I worry that my clients are going to be in a rental they love and the increase in rent is going to outstrip their Social Security and other income.