Making a Case for : Why not build your home? by Endre Barath, Jr. a Beverly Hills Land Specialist.

Making A Case for why not build your home? by Endre Barath, Jr. a Beverly Hills Land Specialist.

After recently reading an article by WalletHub,       https://wallethub.com/edu/best-and-worst-cities-for-first-time-home-buyers/5564 

                        they made a list of the best and worst places for affordability for a first-time home buyer. Sadly, out of the 300 cities, Inglewood, CA came in at #276, followed by Los Angeles at #295 with Santa Monica pulling up the rear at #299 – all 3 cities making it into the top 300 worst affordability.

With these statistics, may I humbly suggest investing in vacant land in the Greater Los Angeles area.  Sure, there are challenges with building approvals, permits and the like, but in the long-run the benefits outweigh the difficulties.  Let’s start with the price.  If you are a first-time home buyer, there are two big challenges you immediately face – one is having the downpayment and the second is being able to afford the monthly carrying costs.  The price of most vacant lots is the price of the downpayment for a house. As one might expect, there are land loans available from lenders. Reach out to me and I’d be happy to give you the list.

Depending upon where the land is located, the home approval process can take a couple of years, but the good news is while you are meandering through the approval process, you are paying down the land if you’ve taken a loan. Subsequently, the value of the land increases as time goes by hence, as you approach the finish line for approvals to build, the value of the land has increased dramatically.  Should your situation change, there are many buyers who do not want to go through the approval process but are willing to pay top dollar to buy vacant land with Ready To Issue permits (RTI). So you just might be able to sell the land to someone else, thus using the proceeds for other opportunities, possibly even enough to put down for an already built home.

Alternatively, if your plan to build moves forward the lender that gave you the land loan is generally open to converting your land loan into a construction loan. Now with that said, add an additional 6 months to a year and you built your home, clearly at a fraction of what you would have paid had you bought your first home.

Another thing to keep in mind is there is a huge demand for new construction homes in the greater Los Angeles area that you can sell for top dollar should you decide not to live in your newly constructed home.  If you take those proceeds and buy an existing home for less, you are well ahead of the game and avoided the huge dilemma of being a first-time home buyer in places such as Los Angeles, Inglewood and Santa Monica.

Being a vacant land specialist in the greater Los Angeles area, reach out to me to help you achieve your goal of being a first-time homeowner.

If you are looking for a pet friendly Beverly Hills Realtor who can handle the most challenging properties that no one else could, please reach out to me directly. If you are considering buying or selling a home, a luxury home, luxury investment real estate, luxury vacation homes, or luxury beach properties or vacant land in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Marina Del Rey, Venice or Malibu reach out to me at 310.486.1002 (m) or homes@endrebarath.com or visit my website at https://www.endrebarath.com.