Originally posted by @Fay Chen:
@Account Closed , desperate times call for desperate measures. Some freelance workers partner up with W2 workers to qualify for loans. And the partnership doesn't limit to spouses. My friend's landlord is an actress. She made good payout from a few longer-term contracts so she had some money saved. She bought a ~680K townhouse by the beach with her sister. She now rents 2 out of the 3 rooms out and the place practically pays for itself. In her spare time, she drives for Uber. Josh started as an actor in LA too. And look where he is now!
Also, freelance work in LA is probably more legit than you think. I pay my freelance/contract worker over $80/hr for a 12-month contract. My mom makes $150K-$250K/year as a free agent. And every penny is reported.
There are definitely challenges in finding affordable housing in LA, let alone investing. So people get creative with the unique opportunities here. I'm sorry I can't present you with institution papers or research. But you wanted to hear from people who actually live in LA. That's what I provide here, just examples of me and my friends who actually live here. If it's not what you want, disregard what I said.
The median household income in LA County is $56,000 not $150,000, not $250,000. Now that is Household Income, we aren't even talking Personal Income (much lower) -- huge difference. Some households may be comprised of 2 or 3 different wage earners as you mentioned earlier so people often confuse household income to mean personal income. What your mom makes isn't what every or a majority of LA county residents make.
As an investor I have concerns with what the data shows about the area although there are a few that will describe unverifiable experiences that conflicts with the facts. You may of course describe what you feel or see... but perception often can be very different from the fact and you dont base investment decisions on just feelings.
There are those on here who will often vehemently claim (wrongfully) that they have no idea what a housing affordability crises in LA even means. That from what they see, there are jobs everywhere. I say the facts suggest there is a crisis. Also, if the activities you mentioned are reported, then this should all be accounted for in the current employment and income data for the region.
Your mom makes $150-$250K, if the data showed averages or that a majority of LA county residents made $150-$250K, there wouldn't be talks of an affordability crises, there wouldn't be rent controls. Not at current prices.
Median wages there is in the $50,000 range. You dont buy $749,000 houses or beach front properties with $50,000 income. To buy a median value home in LA today, at current prices require income in the 6 figure range; so unless the labor dept there is doing something grossly wrong, median wages is almost half of what it should be at current prices..
