Did you know that there is now a new and more affordable way to purchase property in Los Angeles? Many people become frustrated with renting when they realize that the amount they would pay for a mortgage is actually, most of the time, a lot less than what they have been paying in rent.
TICs (tenancy-in-common or tenants-in-common) allow apartment units to be sold and purchased individually, similar to how a condo sale works.
When you purchase a TIC property, you aren’t purchasing an entire property. Rather, you co-own the property with other people who own the same building. While it definitely appeals to a lot of buyers, it isn’t for everyone. Instead of buying the entire property, they purchase a fraction of the property and then sign a TIC agreement with the people in the other units so that property taxes and responsibilities are shared for the entire property.
When you compare this kind of purchase to the purchase of a regular condo, you will find that it can be up to 15 percent cheaper to go this way if you wish to be a homeowner. It is a way to open up the possibility of homeownership to more people in up-and-coming and popular cities that they couldn’t otherwise afford.
Understanding Tenants in Common
When you choose TIC, it is a way for you to hold the title. Instead of buying the whole property, you are buying a fraction of the whole property while holding exclusive rights to one unit. For example, if there are three other owners besides yourself, then you own 25 percent of the property, and each of the other three owners also owns 25 percent.
Buying in a Sought-After City Like Los Angeles
Since Los Angeles has become known as a pricey place to live, TICs are changing the housing market by making it more affordable to buy in such a sought-after city. Ultimately, TICs are a viable way to get more people into homeownership in LA when they may have previously thought it wasn’t a possibility because of the high costs associated with buying in such a sought-after city.
If you haven’t heard about the new way people are buying homes in Los Angeles, then it is time to learn more about it. Los Angeles is one of the most unaffordable real estate markets in the country. So, many people find that they can’t fulfill their dreams of homeownership in this city because they simply can’t afford it.
If you are interested in getting in on this opportunity to own a percentage of a property in Los Angeles, don’t hesitate to get more information on TICs to see just how much they can benefit you and help you fulfill your dreams of becoming a homeowner.