Believe it or nuts, Long Beach is still one of the few beach cities where someone can still find affordable housing. That’s right. If you are paying the average rent, then you can afford a house in Long Beach. You may not be able to afford your ultimate dream house so it’s important to leverage what you have in order to get what you want. Even with the low inventory of homes for sale in Long Beach (as of this writing), you can still meet your real estate goals.
You Can Afford A House in Long Beach
For a two bedroom apartment the average rent in Long Beach is $1,740. This is the average. If you’re closer to the ocean, you’ll pay a lot more for rent. But for now, let’s stick with this number.
A rent payment is $1,740 which means today you could afford a mortgage that is $375,000. At the time of this writing, 575 homes are available, you could afford to purchase any of the 111 homes still for sale. This does include both Condominiums and Houses. This is actually a good start.
If you’re paying the average rent, there are over 100 homes you can afford in Long Beach available to you today.
Is there a way you could afford a bit more?
Because of the tax breaks you’ll receive, increase the number of deductions you take on your W4. The more deductions you claim, the more money you take home. A few hundred dollars extra puts you at affording a $450,000 home.
This is not anything fancy or trick mathematics. If you’re making the average salary in Los Angeles County and you’re paying the average price for a 2-bedroom, 2 bath home then you can afford a house in Long Beach.
What Else Can You Do
Focus on paying down or paying off debt. This is a no-brainer. The more personal debt you carry the less house you’ll be able to afford.
If you’re debt is paid off, focus on increasing the amount of money you can put down. Institute a savings plan that allows you to put $1,000/month into your house purchasing fund. The more money you have towards your Earnest Money Deposit or your down payment improves your chances of getting a better loan.
Speak to a local lender. Lenders have a credit plan computer program where they input all of your information and can quickly put together an action plan for you to follow. Speaking to a lender does not mean you have to get a house loan. My recommended lenders are dedicated to your long term success. If you need a year to get yourself into a better position, then let’s do that.
You can afford a house in Long Beach if you’re paying the average rent. You’ll need to do other things, such as reducing or eliminating personal debt and get better at budgeting.