Effect of Mortgage and Rent Moratoriums on L.A. Market?

[Kenan Heppe]

Hello wonderful BP World! I hope to get your take on this subject.

I'm hoping to co-purchase a triplex in Los Angeles County sometime in the next six months. Obviously, this is a very turbulent time for many reasons, rendering financial analysis slightly less reliable. Some people believe there is an inevitable housing price dip coming, but some people believe that couldn't be further from the truth, because of the moratoriums.

L.A. County has yet again extended mortgage and rent relief, this time through July 31st. These policies, once expired, don't force renters or landlords to suddenly pay 3-5 months of missed rent/mortgage. Rather, mortgage lifetimes are simply extended for the same duration of time that they were paused. And landlords will receive rent relief to cover lost rent payments. It seems L.A. is doing everything in its power to prevent homelessness and a housing crisis.

Given this information, what really is there to justify the thought that a crash could occur? I suppose the main question is...how long will Banks agree to allow these moratoriums to last? How can we, as investors, predict or evaluate such possibilities? Moratoriums can't just keep going forever. I'd love to see your thoughts!