For many Latino immigrants and their children living in the United States, buying a house would allow them to achieve the American dream. However, for some of them, especially the youth, achieving this dream in Los Angeles has become almost impossible.
A 25-year-old Latina girl and daughter of migrants, who preferred to remain anonymous, explained that she has been working since she was 18 years old and has always lived with her parents. She added that she started working while she was attending college to get her bachelor’s degree in sociology. Upon graduation, she was able to leave her lowest-paying job for a higher-paying job in her industry.
While working as a behavior therapist for children with developmental disabilities, the young woman said she decided to get her master’s degree to get a raise. Although she made it, she explained that her salary was not enough to move out of her parents’ house and rent a space for herself.
“I am earning approximately $64,000 a year,” said the young woman. “But it’s not enough for me to buy a house, much less here in Los Angeles.”
The young therapist said she is currently preparing to take her certification exam so she can get another raise.
“Even if I pass my exam, I don’t think it’s possible for me to buy a house here in Los Angeles, I’d rather look in another state where the houses are bigger and their cost is more affordable.”
Gabriel Reyes, a home seller, said that in Los Angeles, it would be best for young people to start by buying a condo or townhouse, since they may not have enough income. He explained that the most difficult challenge for young people who want to buy a house is to qualify for a loan to make their down payment.
“If they have good credit, they will qualify for a loan,” Reyes explained. “From there, the amount of the loan determines where they can buy. Considering that home prices in Los Angeles are too high, they may want to look in cities further east of Los Angeles, such as the Inland Empire.”
Reyes added that people who are wanting to own a property for the first time are the ones who have the most difficulty in doing so. According to the home seller, this is due to inventory shortages, and because first-time buyers usually offer a minimal down payment.
“When a house is put up for sale, you will receive between 5 and 20 offers. From there, the seller will choose the best buyer who on several occasions has been the one that offers the highest initial payment,” Reyes explained.
Wells Fargo Hispanic community representative Valeria Esparza-Chavez says there is a myth that prospective homebuyers need to have money saved to make a down payment. However, she assured that there are resources in the community that help families?including young people? with down payment.
According to Esparza-Chávez, a study by the National Association of Latino Real Estate Agents (NAHREP) reported that 70% of Latinos will become new homeowners in the next 20 years. She added that the same study indicates that Latino youth (under 25 years of age) are more likely than other youth from other ethnic groups to buy homes.
Although the cost of real estate in Los Angeles has increased, Esparza-Chavez says there are opportunities for people to get their own home.
One of these options is to search in other areas, as Reyes mentioned. “Many Latinos have been seen in the Inland Empire,” said the Wells Fargo representative. “These are areas where there is construction as in Los Angeles it exists, but unfortunately there is a housing shortage.”
Another possibility to achieve the dream of owning a home is to buy with a co-owner, but the most important thing, be sure, is to be well informed when starting the process.
“Latinos are very powerful,” Esparza-Chavez said. “We are going to be the consumers of the future of this country.”
That is why he invited the community to attend a fair, “Promotion of home ownership”, with Luis Hernández from the Mexican National Team. The event is organized by Wells Fargo with the goal of helping Southern Californians learn more about the home buying process, down payments, credit, closing costs and more.
Esparza-Chávez explained that there will be representatives who speak Spanish and will offer breakfast for attendees. Also, she stressed that the fair will be a family event in order to disseminate information among generations. The fair is completely free and you only have to register to attend.
Home Ownership Promotion Fair:
When: Saturday, September 16, from 10 am to 1 pm
Where: SoLa Beehive, 1000 East 60th St. Los Angeles, CA 90001.
To register:
www.wfhmconsumerevents.com/aspx/events/brochure.aspx?