2018 was The Rental Girl’s 14th year in business. Since 2004, we’ve been working on empowering renters to become future homeowners. This year, we felt that possibility fading away as home prices soared. More and more, we hear renters say that homeownership in LA will never be possible.
It’s time for change.
For too long owning or renting have been the only options for housing. Looking into the future, we will see new hybrid markets emerging. This year, The Rental Girl pioneered one such market in Los Angeles: Tenancy-in-common (TIC). This month, we closed our 20th TIC sale.
TIC sales are new to LA. TIC allows multiple people to buy an apartment building together. In the past, purchasing income property has been limited to landlords and investors. Now, with TIC, multiple unrelated and entry-level buyers can purchase a building together. TIC allows people to co-own a building together with each owner having exclusive rights to one unit.
Here is why we are so passionate about the TIC market:
1) TIC units are priced 10-15% lower than comparable condos. They provide entry level inventory for buyers who are priced out of the market. 2) TIC is an opportunity for multiple people vs. one person to own a property, allowing multiple people to build equity and wealth. 3) The TIC market will create future possibilities: Landlords wanting to exit the real estate market can sell a building to its tenants. A landlord struggling to keep a property can sell off fractions of the building to other buyers, and still retain part of the building. 4) Purchasing a TIC with 20% down, the mortgage and expenses are often equal to market rent. And as a TIC owner, you still get the same tax benefits as a condo/SFR owner. 5) TIC buildings are generally small, intimate communities. They attract like-minded individuals. Many TIC buyers were previously renters living in apartments. TIC buyers appreciate the community aspect of apartment living, but want the benefits of owning. When you co-own a TIC, you join and contribute to a community that is mutually beneficial.
This past year, we brought 9 TIC communities to Los Angeles, providing opportunities for 20 renters and entry-level buyers to become homeowners. We have 13 TIC units available and we’re gearing up to list 8 more in January. What does the future of real estate hold? Contact me for more information on these. And follow us in 2019 as we continue to explore and create a new future of possibilities for you.
Liz McDonald, Broker & Founder
- The Rental Girl Leasing & Sales
- BRE Lic #01449897