Hello, I'll be starting my full-time job as an analyst at BB next year. Not 100% sure about the comp progression at my specific group but I'm expecting to make around 150-200 as an analyst.
I'm looking to buy a studio in the LA area. I'm looking into nicer/safer areas like WeHo, century city, and culver city. Obviously, these are expensive areas, so I'm expecting these studios to be priced at around 5-600k. Is it a good idea to try to save up like crazy for the first few years for a studio to cut the rent expense? Any advice or suggestions from those who had experience saving up for their first house or a studio?
Thanks in advance and early Merry Christmas & happy new year!
I assume you have a stable job and will remain in the area for a good amount of time (minimum 5 years)
Since rates are still low I’d recommend getting a mortgage and just pay it off as fast as you can. Try to get a broker who will lock in your interest rate. With rapid inflation and a fixed interest rate, you’ll end up paying WAAAAAY less than the actual property value and you would be profiting
Why do you recommend to “pay it off as fast as you can”?
Sounds like bad advice if you’re trying to maximize value.
Other than personal finance advice (which you can argue both ways), I know the area well. I live in Century City now actually and grew up in SoCal. Let me know if you have questions or need a good broker in the area, I have a buddy who somehow finds the most random off market listings through connections and trust him. We took a few courses together studying RE Development.
As for the more broad question of “should you buy right now”- there’s two ways to look at it. The first, interest rates are so low right now which makes your buying power high, therefore if you plan on keeping the place for a long term hold (and eventually renting it out) then it makes sense. Also assuming you’ll be stable in employment for the foreseeable future. The second, conversely, is you’re likely young and may want to not live in LA long term (much less be a landlord in a place that hates landlords). It may give you better peace of mind to have flexibility, not worry about fixing stuff yourself, and not tie up cash into a property in a super hot market.
Both ways of looking at it are correct so it depends on what you want to do. But if you’re serious about buying feel free to ping me, happy to connect you with a great broker.
Prob late reply but check out Playa Vista. New developments and safe area with whole foods, restaurants, etc. walking distance. I commute to century city and its not that bad of a drive either
My advice is to not buy something just yet. Live with roommates and invest your savings.
Straight out of college it’s more fun to have roommates while also being very cost effective. It’ll also give you the flexibility to figure out which part of the city you personally enjoy spending time in.
You’re also going to be swamped at your job. When your roof springs a leak, your toilet breaks, a light goes out, etc. you don’t want to deal with that on top of your 3 live deals. Just call your landlord and he’ll deal with it.
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