Individual buyer vs. Investor

housingAccording to many reports housing market has been on a road to recovery since the catastrophic recession took place. That should put a smile on a face of any house owner since the value of their property finally reached the expected value. A good reason to boast and be proud again to be a home owner, but what about those who would like to grasp a dream of owning a house in a tangible way. To resolve this issue we need to digest a housing market.

We need to look who has a better leverage when it comes to buying property. It all boils down to the affordability. According to LA Times people who would like to purchase a house in the state of California would have to earn $89,170 annually, considering that their budget to spend would be around $433,940, which is the median price of the house on the current local market.

On the other hand, the areas of urban L.A.  are booming with private investors who are not shy to spend money on the new developments on a lucrative soil. LA Times reports that young crowd is the potential target on the investors agenda, who believe that they are willing to sacrifice outdoor space or so called backyards to have convenience of accessibility to nearest cafes, stores etc.

At the end of the day individual buyer is left with the choice of buying cheaper fixer upper or compromise on the space and go for the pricey trendy condo.  The pool of money available for investors is much deeper though, so the variety of choices are not burden on the major factors such as financing or credit score.

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November 8, 2013 · 8:53 am

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