I want to talk about gentrification for a minute because you can’t talk about emerging markets, without talking about displacement.
First let’s be clear, gentrification is about home-ownership. When I door knock in emerging LA neighborhoods, the people most in jeopardy of being displaced are long term tenants. Meanwhile, the homeowners that purchased years ago, when presented with fact that their neighborhood is improving, are elated. They took a risk and bought in an area that wasn’t exactly “ideal”, but was what they could afford at the time, and has become home to them. So, when we talk about gentrification, the conversation should be about how to get more people to see the value in home-ownership. For long-term tenants, how can you position yourself before prices rise. And more importantly how can they get a loan? Do they know about the Low Income Program Assistance in the City of LA? For homeowners, what do they have to look forward to and how can they plan to maximize the shifts before the prices rise?
Some of us have moved a thousand times and others, not at all. For long-term tenants, it’s more of a challenge because most people don’t like change. Friends and neighbors are being moved out as the owners decide to sell and cash in on equity and take advantage of the increase in values. This often means displacement. New, “non-traditional” businesses are moving in. Other long time businesses are being forced to pay higher and higher rents for their retail shops. Many start closing their doors. So, how can you as a long-term tenant position yourself to purchase? How can a savvy prospective buyer make the right decision in a transitional market?
Ownership answers all these questions because you are in control. You have equity. You have options. You can stay in your neighborhood forever, or turn a profit on an investment property that really improves your quality of life. You can pay the same “rent” for years – 30 years to be exact. You can move when you are ready to move, not when the owner decides. You have more of a voice in local government and more at stake when challenges arise, and more upside as things improve. You pay down your loan, not your landlords.
However, for now people are being displaced but where are they being displaced to? Are there opportunities for first time home buyers?
Home-ownership and Investment is key. Looking through the right telescope, gentrification is not always a bad word. It may in fact, transport you to a brand new universe of option and financial freedom.
I am a Realtor. Crissi Avila. Call me today to talk about Emerging L.A.
Crissi Avila will teach you how to buy smart. We’ll look at location, development, and turnover so you can spot opportunities long before most even start considering them.