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Oct. 26, 2023

Unlocking the Power of Assumable Mortgages for Low-Interest Loans

 

Unlocking the Power of Assumable Mortgages for Low-Interest Loans

In the ever-evolving landscape of Southern California Real Estate, finding the best deal is a top priority for both buyers and sellers. Imagine having the opportunity to acquire a home with an ultra-low interest rate mortgage – it's like hitting the jackpot in the real estate world! This brings us to the topic of assumable mortgages, a hidden gem in the mortgage market that has gained considerable attention recently. In this article, we'll delve into the world of assumable loans and how they can be your golden ticket to significant savings on your next home purchase in Southern California. 

What Is an Assumable Mortgage?

First, let's clarify what an assumable mortgage is. An assumable mortgage allows a buyer to take over the seller's existing mortgage loan. Instead of obtaining a new loan with current market rates, the buyer assumes the terms and conditions of the seller's mortgage. This unique opportunity typically applies to FHA and VA loans, which can be a game-changer in today's fluctuating interest rate environment.

The Recent Resurgence of Assumable Mortgages

Historically, Southern California real estate enthusiasts rarely considered assuming loans due to the extended period of remarkably low-interest rates. However, the landscape has shifted dramatically. Interest rates have surged nationwide, with the latest national average reaching a staggering 7.98% entering the fall of 2023. This spike in rates has ignited a newfound interest in assumable mortgages as they offer a lifeline to significant savings.

The Financial Benefits of Assuming a Low-Interest Loan

Assuming a mortgage with a 2% or 3% interest rate in today's market can lead to substantial savings, especially in Southern California, where real estate prices are on the higher side. You could potentially save six figures on your new home purchase, which is no small change.

Qualifying for an Assumable Loan

Before diving into the hunt for a home with an assumable loan, it's essential to understand the qualification process. Here's a quick overview:

  • Calculate the Gap: Determine the difference between the seller's remaining loan balance, your down payment, and the agreed purchase price. This gap represents the amount you'll need to fund for the home purchase.
  • Secure Financing: To cover the gap, you'll need to put down at least 10% and have good credit. Qualifying for a conventional loan is crucial, as it enables you to obtain a second mortgage or a Home Equity Line of Credit (HELOC) to cover the gap.
  • Negotiate the Deal: Once you've assessed the numbers, negotiate the home's price. In your offer or contract, make it contingent on a successful loan assumption unless you're committed to buying the property regardless of the loan assumption.
  • Initiate the Process: The seller will start the loan assumption process with their loan servicer. Simultaneously, you'll kickstart the loan process for the HELOC or second mortgage.

While it may seem like a complex process, the potential to secure a 2% or 3% interest rate is well worth the effort in the current market.

Finding Assumable Loans in Southern California

Now, how can you locate properties for sale that offer assumable loans with low-interest rates in Southern California? One way is to use online portals such as Zillow, realtor.com, or homes.com." However, this approach may not display all available assumable homes, as it relies on agents listing this information on the property's profile.

A more comprehensive approach is to consult a local real estate agent who can do a deep dive into public records to identify assumable homes. In many cases, there are more options available than what online listings might suggest.

In conclusion, assuming a low-interest loan can be a game-changer in the Southern California real estate market. The potential savings are substantial, making it a strategy worth considering for both buyers and sellers.

How We Can Assist You

If you're eager to explore a list of homes for sale in any Southern California city with assumable loans featuring rates under 4%, simply send us a request. We can also provide support throughout the loan assumption process, help you secure financing with a HELOC or second mortgage, and guide you through every step of the way.

One last note: In order to assume an FHA or VA loan, the purchase must be used as your primary home only. It cannot be purchased as an investment property. The only exception would be in the case of a 2-4 multi-unit apartment complex where one of the units will be occupied as a primary unit.  Don't delay, call us today and let us start your search. 

Posted in Buyer Tips, Financing
Nov. 5, 2021

New California Housing Law SB9 Impacts Single Family Zoning

Are you curious about what all the new California housing laws mean for you and your family? Recently, California Governor Gavin Newsom signed a pair of bills that “effectively put an end to traditional single-family zoning restrictions in most neighborhoods statewide.” 

This bill, SB9, allows property owners to split a single-family lot into two lots and place up to two units on each, creating the potential for up to four housing units on certain properties that are currently limited to single-family houses. 

There are many caveats to this bill, including the fact that each new lot, if split, must be 1,200 square feet and any new unit created as a result of this law cannot be used for short-term rentals and must be rented for longer than 30 days. 

This law also does not allow for offices and new housing units on single-family properties. Any new units created under this new bill must be used for residential purposes only. 

If you are a homeowner or landlord, and planning to live on the property, you can apply to upzone your property through your local jurisdiction. 

This bill will also help build more and more housing units in a more financially feasible way in the next five or so years. 

Call Team Gaeta 📞 626-552-8637 or visit our website 💻 at trinidadgaeta.com to learn more about how we can help you find your new home in Los Angeles county!

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Nov. 5, 2021

Zillow Deal to Outbid Homes Backfires

As most people know, the real estate world is changing at a rapid pace. With some of the fastest rising prices in housing history, the real estate company Zillow had their sights set on success and huge profit margins. The company changed their algorithms to make higher offers. 

According to the Los Angeles Daily News article, It ended up with so many winning bids that it had to stop making new offers on properties. Now, after buying more homes in the third quarter than it ever has before, the company is working through a backlog of houses that need to be fixed up and sold while facing an unpleasant reality: Slowing price appreciation means it will sell many homes at a loss.”

“Zillow put a record number of homes on the market in September, listing properties at the lowest markups since November 2018, according to research from YipitData. It also cut prices on nearly half of its U.S. listings in the third quarter, according to Yipit, signaling that its inventory was commanding prices lower than it expected.”

“The shift has been on display in places such as Atlanta and Phoenix, two markets where home prices have been surging. Zillow’s roughly 250 active listings in Phoenix are currently priced at 6% less, on average, than what the company paid for the homes.” 

On October 18, the company stated that they would stop making new offers to buy homes. This sent shares down by 9.4% while they were working through the backlog. Even though losses happened, the stock has recovered them exponentially. However, there has still been no profit from the home-flippin operation that started in 2018. 

Call Team Gaeta 📞 626-552-8637 or visit our website 💻 at trinidadgaeta.com to learn more about how we can help you find your new home in Los Angeles county!

#realestatemarket #buyers #sellers #realestateblog #blog #realestatetips #sellertips #trinidadgaeta #trinidadgaetarealty #gaetarealestategroup #gaetarealestateteam

 

Oct. 29, 2021

Celebrity Homes On The Market in Los Angeles County

Curious about all the star-studded homes that are currently on the market? Check out these celebs who have recently put their mansions on the market

 

Trever Noah recently listed his $29.75M Bel-Air Mansion for sale less than a year after buying it! The Japanese-inspired design was described as a “tranquil haven” in Architectural Digest in 2017. “The library, in particular, was fashioned after a room in Kyoto, using heavy, dark timbers,” Rios told the magazine. Details include those dark wood accents, light-filled spaces, and city views. Previously, the home had been on the market since 2018, asking as much as $36 million. The price was dropped to $32.5 million in 2020, and then $29,500,000

 

Marilyn Manson is also selling his Los Angeles home for $1.75M. He purchased the property in 2013 for $1,085,000.Set on a small lot and built in 1926, the home is surrounded by patios and gardens. The updated, Spanish-style abode offers three bedrooms and three bathrooms on 2,711 square feet. There is a light-filled great room, which features 20-foot beamed ceilings and glass French doors that open to a private patio for outdoor dining. From the great room, a staircase with wrought-iron railings leads to a landing with built-in bookshelves. The space could be used as a library, office, or reading nook. Downstairs, the kitchen, which also gives onto a patio, has built-in seating, generous counter space and storage, and a geometric backsplash. The layout also features a large formal dining room. Upstairs, two separate master suites come with tiled bathrooms and walk-in closets. A guest bedroom and bathroom on the lower floor features a separate entrance, and could be used as a private office.  

 

Leonardo DiCaprio also has a house on the market for $5.75M. His Spanish-style estate is in the Los Feliz Oaks neighborhood. The mostly white interiors feature pendant light fixtures and glass doors throughout. The tudor features five bedrooms, six full bathrooms, and two half bathrooms. In addition to the gourmet, eat-in kitchen there are also multiple rooms for family, media, and formal dining. The grounds also feature a pool and spa. 

Interested in learning more about all these star studded homes currently on the market? Contact Team Gaeta to learn more about how we can help you find your new home in Los Angeles County!

 

Oct. 29, 2021

New Events Happening in Los Angeles County This Fall Season

Are you looking for all the latest, and most exciting events happening this fall season in Los Angeles County? There are lots of events happening throughout the city for you and the whole family to attend and enjoy! 

 

Check them out: 

What: Grand Park Downtown Dia de los Muertos 

When: Until Nov 2nd, 2021

Where: Grand Park, Downtown Los Angeles

Join Grand Park and Self-Help Graphics & Art—which hosts its own Day of the Dead celebration—for a nearly two-week display of 20 altars erected within the park. The altar display officially kicks off on October 23 with a traditional Noche de Ofrenda ceremony to pray for and honor the dead, featuring a communal circle and blessing led by the indigenous community.

What: Environmental Awareness Day 

When: November 20th 10am-4pm

Where: Chatsworth Train Station - North Lot Area

This will be a day for all community members - young and old - to learn how they can be involved in their community beautification, environmental contribution, volunteerism, and making their community a better place to live. 

This is the first of many- one per every quarter - and it is designed to give you a fun day with family that educates us about things that will help us create a better community environmentally. 

 

What: Star Trek: Exploring New Worlds

When: Until Feb 22nd, 2022

Where: Skirball Cultural Center, Westside

Space: the final frontier. This is the voyage of a traveling pop culture exhibition. Its latest mission: to stop by L.A.’s Skirball Cultural center.

After missing its 2020 debut because of, you know, everything happening here on Earth, “Star Trek: Exploring New Worlds” has finally landed at the Skirball. The exhibition celebrates the sci-fi franchise’s impact on culture, art and technology and its futuristic vision of inclusiveness—but mostly, it shows off some particularly cool Trek relics.

Originally organized by the Museum of Pop Culture (MoPOP), Seattle, “Exploring New Worlds” features over 100 artifacts, set pieces and props—from communicators to phasers to Borg cubes to tribbles—from the television series, spin-offs and films. The original series and its subsequent movies are the most well-represented, but you’ll find a little bit from just about everything that followed, up through Discovery (the insistence in one video that the J.J. Abrams-launched alternative universe movies are still going strong certainly dates the exhibition to a specific time in the franchise’s history).

Even if you’re not a Trekkie, you’re sure to recognize some of the things on display here: Captain Kirk’s command chair (there’s a replica in the lobby for photo ops) and the navigation console from Star Trek: The Original Series; costumes worn by Leonard Nimoy, Nichelle Nichols and Patrick Stewart (Spock, Uhura and and Picard, respectively); filming models of the U.S.S. Enterprise, U.S.S. Excelsior, U.S.S. Phoenix and Deep Space Nine space station; pop culture ephemera like a Vulcan salute foam finger; and a fabulous Gorn lizard-man costume.

Timed tickets cost $18 and include admission to the rest of the museum. Reservations open up on the first Thursday of each month at noon.

Loving all the fun, exciting things to do around the city of Los Angeles? Contact Team Gaeta to learn more about how we can help you find your new home in Los Angeles County!

Posted in Lifestyle, News
Oct. 22, 2021

Los Angeles Office Market: Buyers Are Seeking Land

According to Kevin Shannon, co-head of capital markets for Newmark Group Inc., buyers are looking to make real estate purchases in office markets such as Culver City, CA and Burbank, CA. These markets have both rental rate and job growth which makes them attractive to potential buyers. Research being done by investors shows that some of the markets and sectors with a lot of growth potential are within the office space. 

 

The primary driver in this growth are the media and entertainment companies based out of Los Angeles. Due to the pandemic, there is now much more concentrated efforts on content creation from big players such as Netflix and Hulu. These giants in the entertainment industry need office spaces for this work which Shannon believes will ultimately lead to the office market recovery within Los Angeles county. The big tech companies want to be the best in the game and outsmart their competitors. This is why so many are turning to land and buying B and C class office buildings with the goal being building new office buildings on that land. 

 

When asked “For the office buildings that are remaining office properties, how are investors and developers working to meet changing office space needs?”, Kevin responded: “You’ve got to keep up with the Joneses. If you have an older product, you need to renovate it; you need to create amenities and campus environments that are attractive to tenants. You have to have the bells and whistles that A products incorporate into their campuses.” 

 

The same can be argued with the housing market, especially in luxury condos and apartment complexes. More and more buyers are looking for attractive amenities to make their living experience that much more luxurious and comfortable. 

 

Check out this blog all about the latest luxury developments and what buyers are looking for. 

 

Contact Team Gaeta today to learn more about how we can help you find your new home in Los Angeles County!

 

Oct. 22, 2021

Is The Million-Dollar Los Angeles Home Now More Attainable Than Ever?

This sounds like a crazy question, right? For most Americans, the million-dollar home is likely still just a dream, especially due to the fact that million-dollar homes are taking over once affordable neighborhoods all over Los Angeles county. 

 

This is because of the increasing demand for larger spaces, driven by the fact that most people were and still are working from home. The desire for more space to both live and work has caused an increase in home prices throughout the city. Even though the prices of these homes in these neighborhoods have skyrocketed, it doesn’t necessarily mean the quality or size of the homes has. From looking at Zillow, we can see that a million-dollar home can consist of a 3,000 square foot spot with just four bedrooms, or a small two-bedroom bungalow with just one single bathroom. 

 

According to the Los Angeles Times, due to rising incomes and historically low borrowing costs, the number of people who can afford such a high priced home, skyrocketed. During the pandemic that began in 2020, 15 different LA neighborhoods became a part of the million-dollar home club. Most of these neighborhoods are in these three areas of Los Angeles: South LA, Northeast LA, and the San Fernando Valley. 

 

Read more about the current real estate market here.

 

Contact Team Gaeta to learn more about how we can help

you find your new home in Los Angeles County!

 

 

Oct. 15, 2021

Latest Luxury Developments in Los Angeles

In Los Angeles, many buyers are drawn to the idea of living a lavish life full of luxury. The luxury condo market has seen an uptick in the buyers preference towards amenities offered in different complexes. These amenities include valet and concierge services, pools and hot tubs, fitness studios, wine-bar lounges, and even golf simulators. 

According to Sandra Eaton, the regional director West Coast at Compass Development Marketing Group, some of these amenities have been driven by the crisis of the covid pandemic such as contactless, innovative, and secure package deliveries of just about everything you could think of.  

Not only has the pandemic put a larger emphasis on different amenities offered in places, it has also amplified the importance for healthy, vibrant personal spaces and neighborhoods since more and more people have been working from their homes

Since these condo amenities have been so hard for buyers to resist, the prices in certain neighborhoods such as Beverly Hills have increased at a rapid rate. Neighborhoods such as Sunset and Century City have also showed strong pricing and sales volume recently. 

These are the three luxury complexes that residents are moving into frequently: The Century Plaza Century City Residences, Four Seasons Private Residences, and Pendry Residences West Hollywood. 

From seeing these new trends in luxury housing, Sanda Eaton says that L.A. is moving at its own steady pace and though they are not the same numbers that we see in NY, SF, or Miami, this market is in a steady growth pattern and actually feels quite boyant. She also noted that the year of 2021 is a great start and is likely to continue for a few years. She expects the L.A. luxury market to be a high-growth one and one to watch as a trendsetter for the future. 

Contact Team Gaeta to learn more about how we can help you find your new home in Los Angeles County today! 

 

Oct. 14, 2021

Tips From The Experts on Sustainable Building Practices For Homes

In today's world, there is more and more talk of the threat of our changing climate and how it can impact the world's infrastructure. Expert architects are giving out all the best tips on how to build and renovate homes sustainably with mother nature in mind.

Building houses and buildings of any kind takes quite a lot of energy and is responsible for about 40% of the world's greenhouse gas emissions. Many people think that most energy used comes from the electricity, gas, water etc. that it takes to run a home, but it's actually the energy used to construct the buildings that is the most destructive. This is what experts call "embodied energy". 

One of the best ways to take a step towards being green is to renovate by working with what you have and using reclaimed materials from pervious builds instead of starting from scratch.

Using materials like wood is much more eco-friendly than steel and concrete since it is made using the sun. This reduces embodied energy in the present which is much better than trying to produce more energy at a later point in time. Stone is another recommended material to use because it also requires less energy to produce. 

The Architectural Digest article on this very issue talks about certain builds that are called "passive houses". These houses made with the intention of going green and using as little energy as possible, have many unique features that can help strengthen the infrastructure of our houses and buildings. They rely on the elements of nature such as sunlight and shading cross ventilation, rather than on active heating, cooling, and electricity for lighting. In addition, there is also more insulation and triple-glazed windows that help trap the heat indoors during the colder seasons and keep it out during the summer months. 

 

Contact Team Gaeta to learn more about how we can help you find your new home in Los Angeles County!

Oct. 8, 2021

Office Availability in Los Angeles County Hits New High

 

 

In the recent quarter, quarter three of 2020, 3.2M square feet of space was leased. However, office space availability in the county is at nearly 25 percent and climbing. In the past ten years, Los Angeles has not seen this much space available in terms of offices. 

 

Relocations during quarter three made up for about 44 percent of the leases signed, which means many firms could have reduced their office space primarily due to the changing climate of working from home. The type of firms that made up 43 percent of these leases include media, advertising, technology, and information. 

 

With 29.5 percent availability, Hollywood and the greater Los Angeles area ranked as having some of the highest availability rates during the third quarter of 2020. Burbank however, had a very small percentage of available office spaces with just 9.4 percent of space being available for leasing. It is predicted that the recovery for the office market will be slow and determined mostly on the state of the

coronavirus pandemic and the cities and companies work from home policies. 

 

Another reason many people are turned off from the idea of leasing more or new office spaces is because even though the availability is becoming more and more, so is the cost of rent. During the last quarter, a typical renting rate for an office space was $3.87 per square foot. Properties listed as Class A saw renting rates of $4.11 such as those in Santa Monica, Century City, and Marina del Rey. 

 

Contact Team Gaeta to learn more about how we can help you find your new home in Los Angeles County!

 

Posted in Market Update, News