Too Good to be True? What You Should Know About the Affordable Condos in the Los Angeles Real Estate Market
The housing market in Los Angeles has been making news with many potential home buyers noticing numerous condos popping up at much more realistic and affordable prices than in the past. But why is this happening? What is suddenly causing various condos in one of the most in-demand cities in the nation to become so affordable?
The average cost of a 2-bedroom condo in Los Angeles is upwards of $500,000 and even higher depending on the neighborhood that you are looking at. And it seems like everywhere you look, there is news about the continued increase in the cost of real estate throughout the Greater Los Angeles area. So what is going on with these condos that they can sell for such a low cost, some listed for under $350,000?
There are two primary reasons as to why condominiums in the Los Angeles area would be listed for such a dramatically lower price than the majority:
Problems within the Buildings Themselves
If you were purchasing a business, you would want to know how much money it makes, as well as how much money it spends, how it spends it, and if it’s being sued – so wouldn’t you want to know all of that when purchasing a condo? Unlike buying a house, buying a condo means that you are purchasing a part of something, much like as if you were going in on a business.
One of the main reasons that some condos are so affordable is that the condo corporation is either running a negative balance, experiencing a special assessment or potentially in the middle of a lawsuit. This can be a sign of a few things, such as improper spending of the condo board, poor planning, and management or simply an accident resulting in a lawsuit. Regardless of what the reason for the negative balance, a condo having one is something that you should look at seriously consider prior to buying in. While these things do happen, it is important that you remain aware that this is a major financial investment that you are considering making, and you want to ensure that your money is safe.
Location
As a general rule of thumb, neighborhoods that are walkable, close to the heart of the city, easily accessible, and close to transit command higher prices. Simply based on the prime location these condos are in higher demand, which increases the price the property can be sold for. Condos in neighborhoods that are not in such a prime location will usually show a lower price per square foot in comparison to those that do.
The city of Los Angeles is made up of a number of unique and character-filled neighborhoods. The price of a condo or any real estate is very much dependant on what neighborhood you are considering buying in, how close it is to the heart of the city and what that area has to offer residents.