I would be worried about what could happen if some of the tenants go bankrupt and can't pay back their mortgages. If the whole building is considered and taxed as a single property, would the lenders of the bankrupt tenants be able to foreclose on the entire property? TIC agreement may provide some protection, but it sounds quite risky and definitely needs expert research.
Yeah, it's a real struggle. With the rising housing prices and stagnant wages, it's becoming increasingly difficult for many to afford homes, let alone save for retirement.
It's a vicious cycle. If people can't afford homes, they might delay retirement savings, but if they focus solely on saving for retirement without considering their housing situation, they might miss out on potential investment opportunities.
And let's not forget how the global economy plays into all of this. Economic instability, inflation, and market fluctuations can further complicate matters and add to people's financial worries.
It's crucial for individuals to diversify their portfolios, seek professional financial advice, and stay informed about market trends to navigate these challenges effectively.
This was a very good breakdown, Shelby! I've been studying the condo laws (and how they're related to California's ADU rules) and it's great to see a TIC explainer that literally has an ADU on it.
Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
consider moving your money from the housing market to financial markets or gold due to high mortgage rates and tough guidelines. Home prices may need to drop significantly before things stabilize. Seeking advice from a financial advisor who understands the market could be helpful in making the right decisions.
When ‘Melissa Terri Swayne’ is trading, there's no nonsense and no excuses. She wins the trade and you win. Take the loss, I promise she'll take one with you.
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
TICs were first established under the Law Property Act of 1925 and were initially meant to make buying, selling, and transferring property from one person to another easier drawbacks of a TIC There aren't any automatic survivorship rights. It's possible for just one of the tenants to force a sale of the property. Every tenant is equally liable for property taxes and debts.
Since the TIC is assessed as one parcel for property tax purposes. (I hopefully that's accurate enough) What happens when the taxes for one division(?) of the unit get re-assessed. For example, if one person sells their share*, the property tax assessment would get recalculated based on the new value and I assume that means everyone has to pay the new property taxes since shared ownership and not individual ownership? (Yes, I realize raise property taxes every year but that is capped at 2% and tied to inflation not actual property value in Los Angels, Ca) This could force you to sell if you can no longer afford the property. Yes, you'll almost certainly get more out of the sale then you put in (Since that's why the property taxes are higher) but if you were planning on building/preserving wealth while staying in the same house or at least area, it could force you to move or spend more money then you were planing. So say you net $200,000 from the sale but now you need to buy a new property that's more expensive and thus has has the higher property taxes than you were used to. And then you have additional risk from interest rates. You might save money on your mortgage if you place your return from the sale into the new house but that still might not be enough to afford the mortgage and tax burden. This might work out favorably if you can get a pay raise but a fixed income could see you moving out of the area/to lesser housing when you had zero plans to do so. *Keep in mind selling isn't the only thing that can trigger reassessments. But that gets way more complex. Just realize unplanned reassessments will be more common than in a condo.
There is a TIC Agreement in place where the other owners can force a foreclose on the owner that didnt pay property tax. With 15-25% equity in the property, the sale of the property would also pay the property tax due. Most people with $150-$250K in equity, a great credit score would sell before it got bad.
@@nickhull83 normally tic should have no issue as these are successfully implemented nationwide since 1925. They do a pretty decent job to get the candidates before the transaction is settled.
I'm a lawyer. For a year I worked for a company that tried to set up TIC deals. Instead of details I'll just say, if TIC is so great why are so few deals set up this way? This chic is a liar. Don't fall for her BS.
This is what Esther A Berg does, she has changed my life. After raising up to 60k trading with her, I bought a new house and car here in the US and also paid for my son's (Oscar) surgery. Glory to God.shalom.
California's overall property taxes are below the national average. The average effective property tax rate in California is 0.71%, compared to the national rate, which sits at 0.99% (even higher in places like Texas)... also, the appreciation rate in CA is much higher than most states.
does look if u dont mind me saying a little to Square and Narrow.. Old Buildings or the Original Builds way more Prestige as back in the day they all knew what they were doing.. Building a Traditional House.. Innit
TIC stands for tenancy in common, which is a legal arrangement where multiple people share ownership of a property: What!!! 10-20% less with multiple ownerships. NO THANKS !!!
My family has a house twice the size with a way bigger yard for 70% cheaper and this was the late 90’s. my family looks at me like “how come you can’t move out or afford anything? You must be spending your money wrong.” 😑
Result of rent control, multi family owners ellis evicted tenants and remodeled. Owners can bring the unit back to the rental market but you need to wait 5 years from the Ellis date and since it's tic all owners would need to participate.
Great video! I am a lawyer in UK and may like to buy in California in the future. At 9:44 you mention taxes and liability - is it the case under RTC § 2187 that the paying owners are at risk of losing their TIC property if the non-paying owner doesn’t pay? It seems the tax is against the entire property. Thank you 😊
We all know owners are desperate sell there homes. Many real.esrate agents are desperate to sell. They are not making money lol... Also condo are a joke it's more like apartment walls close together and sharing parking. Don't matter if below 1 million. Minions of people credit card debt, Loan debt, many are unemployed due to high inflation recession. Most are renting now and but some still can't afford rent. Banks will reject mortgage loans and people bad credit score. And also due to high interest rates that went up again. Lower property tax? LoL still high
Why do people live in Los Angeles? So expensive. There are other places in the country/world that are so much cheaper to where you can have money to enjoy other aspects in life. I feel like all people in LA are worried about are rent/lease payments, property taxes, utilities, food/nourishment. How does one enjoy that way of life?
Because we love the city. I love the culture and people, the lifestyle, the natural beauty / weather. As a creative all the relevant industries are here to work in and collaborate with all the top studios. I’d be miserable in a mansion in Alabama. Nothing wrong with other states or cheaper/rural areas but they’re clearly not for everyone. We all value different things in life and There’s a reason why 10 million people intentionally choose to live in LA despite everything.
lots of us have “low” rent. i rent 2 bedroom 1 bath house for $1000. it’s only if you move or buy a house today that i can seem expensive to others and that totally depends on your income. we purposely looked only at homes under 500k in los angeles county. the mortgage was going to be somewhere between 3-4k.
*Since I became so rich in cryptocurrency I realise that crypto is the future cuz I invested 20k and made up to 53k as weekly profit I appreciate the help of your channel*
I'm thinking about beginning my investment journey, but I feel a bit overwhelmed and uncertain. Do you have any friendly tips or suggestions for people I could reach out to for guidance?
I'm favoured, $90K every week! I can now give back to the locals in my community and also support God's work and the church. God bless America,, all thanks to Ms Shirley Christian 😊🎉
Shelby, I'm honestly disappointed. I really quit being interested in / relating to Monica's channel after she started posting a bunch of stuff that was just completely unrelatable like having multiple houses for seemingly no reason $100,000 car for seemingly no reason no real clear life strategy or what she was actually doing to make money it was really unrelatable. And now it's like you're talking about buying a million dollar house is being some thing that I don't know is remotely achievable and that you only sell million dollar houses in Los Angeles maybe in your portion of it you're trying to tell me the average person in La has a million dollar house who's cleaning the streets? I'm sorry but this is really disappointing and I get you got money but can you please go back to making content for normal people.
you didn't know that shelby and monica are rich? they've been rich for the last couple of years at least with shelby proclaiming she makes $1 million a year from youtube and monica made like half a million from real estate in the seattle area. they're officially in the 1% income bracket now.
@@joeswanson733 I mean yeah but.. especially Monica's stuff it was just starting to get to be weird like I'm buying multiple houses in multiple places for no logical reason.
yes apparently not too long ago she became a real estate agent. her sister is a real estate agent in the seattle washington area while shelby here is a real estate agent in the los angeles area. she mentioned monica her sister makes like $500,000 a year from real estate so they're making bank alright. shelby already makes like $ 1million from her youtube thing so imagine if she also makes like $500,000 a year from real estate she is literally rolling in money these days
In LA there is a new method of purchasing soup for people who cannot afford an entire soup on their own. It's called Soup-In-Common, and it's where seven or eight people pool their resources to purchase one cup of soup. Some might say it's ridiculous and inhumane, and the systemic problems that make cost of living impossibly high in places like LA need to be fixed at the foundational level. Even if it means making rich people very angry. But I say, those sound like "tomorrow problems", and instead we should just focus all our energy on superficial band-aids.
After reading book titled The Elite Society's Money Manifestation, I finally understood why so many people struggle with money. It reveals stuff that most people don’t even know about how money really works. Has anyone else read it?
Awesome video, Shelby! As always! I feel like you make some of the most informative videos on RUclips. Their structure and data are always well thought out! I see a new video from you and I always feel like it's an interesting topic and usually learn something! Including this one! I'll be looking to buy as a first time homeowner in the next few years and had never heard of TICs! Now I know! Thanks to you! It's an option! Keep up the great work!
Americans and their infatuation for tangible assets. This TIC stuff is ridiculous to say you "own" something. Just rent and put money into a retirement account and call it a day.
TIC are not ideal to get into that’s why they are not popular down here in SoCal. They are more popular in the Bay Area. I do not recommend buying into a stock-coop or TIC. At the very least ask to get a copy of the final pubic report or conditional public report if the final is not available, also ask to get a copy of the CC&Rs, Bylaws and Articles and read it before you make a informed decision to buy into one of these. At the very least once you read the public report and the declarations then you ll have a better idea of what you are getting into. If you are still unsure after reading all of this then consult with a real estate attorney, so they can tell you about the pros and cons. Again not recommended to get into one of these.
What happens if the building needs a major repair? Like a new roof or if there’s a fire or burst pipe in one of the units. Will all the owners have to pay for repairs, is it done through insurance. Or what if someone can’t or won’t pay? Would love to listen to someone who has lived long term in a TIC.
I know this girl from her first video about Tesla, years ago when she bought one... Since than I watched her videos about her actual topic she chose for her channel, but not because I'm interested in her content about houses, but because I enjoying in her vocabulary, I don't know what's that, combination of her voice & accent, it's just so calming & balanced, feminine & sounds cute.... Whenever RUclips recommends me her videos, I just click on it & listening instead of watching.... Well .. now enjoy.
You have over 1 million subs, yet can't even garner 100k views for recent videos. Disengenuous and misleading contents like this is probably what's making your viewers turn away from your channel.
If you bought the whole thing, you could turn it into condos! They would then be more valuable, but it would take a lot of time and some money to do it
It never ceases to amaze me at how much money people spend to live in a state that taxes their people to death six ways to Sunday and yet they keep raising their taxes each year and people continue to pay.
TICs are common in San Francisco. They feel more like a house instead of an apartment However, at least the ones here in San Francisc are primarily older houses and major repairs tend to be a matter of when, not if. Which when that happens, it can be a headache especially if you don't see eye-to-eye with the other owners.
When people buy a house, they should only have to worry about the mortgage, tax and utilities as the ongoing fee, not service charges as well. All the obligations of buying, all the costs of renting.
In my state (Wisconsin) property taxes generally run around 2% of the assessed value. So the property tax on a million dollar house would be around $20K per year.
@@Rogerthatidea what!!! How is this a thing anywhere in the land of the free? We have completely lost touch with the ideas of our founding fathers that's for sure
@@giak7525I pay $7000 a year for a house that is assessed at less than $325,000. Much of that tax is local to pay for schools. In reality, states get you one way or another. We have no HOA or any other fees except for water and sewer. The village services are excellent. In Illinois the property taxes are much higher, because of rampant corruption.
Property taxes are actually lower in California than a lot of places, and they are limited by how much they can go up overtime. Somewhere like Texas if you have the same purchase price, you’re paying double and property taxes.
Cooperative and TIC, both are forms of co ownerships, but they are different forms of RE Ownership. Condominium is a TYPE of housing but you can one in severalty ( 1 person) or co- own…
Assuming utilities are individual, what about issues with roof or other maintenance? Since there's an HOA is there a board? What if its not managed well?
Like a condo that would vary from TIC to TIC. But my guess is if the HOA is low, then one an issue like that comes up everyone would probably need to pay it more than if it had a higher HOA.
I hope you take this as constructive criticism, you need to minimize your handling noise of the SM7b. Please get a stand for it Even a table stand would work. Then you can work on your proximity to the mic. You are getting so many pops and rumbling from that mic.
I will have to watch this vlog over and over. It all sounds like huge bureaucracy. I could be totally wrong, but it seems so complicated. I guess it's something you have to be involved in. Good luck with the real estate business. I'm sure with the prices in L.A. and your unique talent, it will be extremely successful for you.
The real estate industry is dying - one day at a time. So the bureaucracy came up with this ridiculous situation - which is a very long-term commitment - and makes no sense. I'm a former realtor and I live 60 miles west of Los Angeles. This is not the Los Angeles of the past.
Shelby, this is actually the smartest explanation of the TICs I've heard! Thank you! Would there be additional cost, if any comes with a swimming pool or hot tub?
Damn those property taxes are crazy! In New Zealand my mum was complaining hers went up to $5000 a year lol, for a nice single family home. Apartments are usually only around $1500-3000 a year. Between taxes and HOA it seems you'd be paying almost as much as a month's rent, without even including the mortgage.
00:00 Introduction to TICs and their benefits in home purchasing. 01:00 Explaining the differences between TIC ownership and traditional condo ownership. 02:00 Shelby showcases a real-life TIC unit, highlighting its features and affordability. 04:00 Discussion about the lower purchasing prices and corresponding lower property taxes for TICs. 06:00 Addressing the stricter financing conditions and challenges in obtaining a mortgage for TICs. 09:00 Explaining potential legal issues and implications of TIC ownership. 11:00 Overview of TICs appreciation and resale potential based on recent market trends. 12:00 Final thoughts on the advantages and considerations of buying TIC properties. Q: What is a TIC and how does it differ from a condo? A: A TIC, or Tenancy in Common, is a form of shared ownership where buyers own a portion of a property but have exclusive use of their unit, while a condo offers complete ownership of an individual unit. Q: Why are TICs generally cheaper than condos? A: TICs tend to be 10-20% less expensive than condos due to factors like lower property tax responsibilities, lower HOA fees, and the less expensive process for developers to convert buildings into TICs. Q: What are the financing options for purchasing a TIC? A: Financing for TICs can be stricter than for condos, with some lenders requiring a down payment of 20-25% and a higher credit score; however, options for 30-year fixed mortgages are becoming available. By TalkTube Chrome Extension (talktube.app)
Another reason for TICs is in areas where you can develop multiple properties on a lot that currently has a single unit. For example, let's say you build tear down the old home and build two free standing homes (one with an attached ADU). If you want to sell the homes separately, you would have to do a lot split. This is a time consuming and tedious process. You have to go through a whole hearing process with neighbors. If you do a TIC, you can sell the two or even the three properties separately without going through this process.
Isn't this practically similar to condominium model. Difficult to understand why it would be new because I doubt that every owner in apartment building would wanna renovate their own plumbing separately.
That doesn't look like a million dollars to me. At some point, housing market greed has to backfire. 1 million dollars for what looks like a walk up apartment? Is it a gated community?
Thanks for this vid, very interesting! These would be perfect for the coming tokenization of real estate. So many of these issues could easily be mitigated through smart contracts, without the need for future legal issues.
I would be worried about what could happen if some of the tenants go bankrupt and can't pay back their mortgages. If the whole building is considered and taxed as a single property, would the lenders of the bankrupt tenants be able to foreclose on the entire property? TIC agreement may provide some protection, but it sounds quite risky and definitely needs expert research.
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I'm getting worried about the rising housing prices. It seems like it's becoming harder to afford a home these days.
Americans are facing a tough time with their finances, especially concerning housing affordability and retirement savings
Yeah, it's a real struggle. With the rising housing prices and stagnant wages, it's becoming increasingly difficult for many to afford homes, let alone save for retirement.
It's a vicious cycle. If people can't afford homes, they might delay retirement savings, but if they focus solely on saving for retirement without considering their housing situation, they might miss out on potential investment opportunities.
And let's not forget how the global economy plays into all of this. Economic instability, inflation, and market fluctuations can further complicate matters and add to people's financial worries.
It's crucial for individuals to diversify their portfolios, seek professional financial advice, and stay informed about market trends to navigate these challenges effectively.
This was a very good breakdown, Shelby! I've been studying the condo laws (and how they're related to California's ADU rules) and it's great to see a TIC explainer that literally has an ADU on it.
Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
consider moving your money from the housing market to financial markets or gold due to high mortgage rates and tough guidelines. Home prices may need to drop significantly before things stabilize. Seeking advice from a financial advisor who understands the market could be helpful in making the right decisions.
I will be happy getting assistance and glad to get the help of one, but just how can one spot a reputable one?
When ‘Melissa Terri Swayne’ is trading, there's no nonsense and no excuses. She wins the trade and you win. Take the loss, I promise she'll take one with you.
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
How long have TICs been around? It sounds perfect for me, but my worry would be some kind of loophole that hasn't been discovered yet.
It’s been around for a long time. It’s popular now because of new laws allowing to build more ADU’s on the property
TICs were first established under the Law Property Act of 1925 and were initially meant to make buying, selling, and transferring property from one person to another easier
drawbacks of a TIC
There aren't any automatic survivorship rights.
It's possible for just one of the tenants to force a sale of the property.
Every tenant is equally liable for property taxes and debts.
I hear of them more on the east coast.
Yesssss the new Shelby Church drop is a banger
Since the TIC is assessed as one parcel for property tax purposes. (I hopefully that's accurate enough) What happens when the taxes for one division(?) of the unit get re-assessed. For example, if one person sells their share*, the property tax assessment would get recalculated based on the new value and I assume that means everyone has to pay the new property taxes since shared ownership and not individual ownership? (Yes, I realize raise property taxes every year but that is capped at 2% and tied to inflation not actual property value in Los Angels, Ca)
This could force you to sell if you can no longer afford the property. Yes, you'll almost certainly get more out of the sale then you put in (Since that's why the property taxes are higher) but if you were planning on building/preserving wealth while staying in the same house or at least area, it could force you to move or spend more money then you were planing. So say you net $200,000 from the sale but now you need to buy a new property that's more expensive and thus has has the higher property taxes than you were used to. And then you have additional risk from interest rates. You might save money on your mortgage if you place your return from the sale into the new house but that still might not be enough to afford the mortgage and tax burden. This might work out favorably if you can get a pay raise but a fixed income could see you moving out of the area/to lesser housing when you had zero plans to do so.
*Keep in mind selling isn't the only thing that can trigger reassessments. But that gets way more complex. Just realize unplanned reassessments will be more common than in a condo.
What if other owners refuse to pay property taxes????
than you're held liable.
There is a TIC Agreement in place where the other owners can force a foreclose on the owner that didnt pay property tax. With 15-25% equity in the property, the sale of the property would also pay the property tax due. Most people with $150-$250K in equity, a great credit score would sell before it got bad.
@@nickhull83 normally tic should have no issue as these are successfully implemented nationwide since 1925. They do a pretty decent job to get the candidates before the transaction is settled.
I'm a lawyer. For a year I worked for a company that tried to set up TIC deals. Instead of details I'll just say, if TIC is so great why are so few deals set up this way? This chic is a liar. Don't fall for her BS.
Totally agree with you.
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Oh really? Tell us more! Always interested in hearing stories of successes.
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I prefer to live in areas where one does not need to be a millionaire to own a home. Interesting video but dang those taxes, costs, and fees.
California's overall property taxes are below the national average. The average effective property tax rate in California is 0.71%, compared to the national rate, which sits at 0.99% (even higher in places like Texas)... also, the appreciation rate in CA is much higher than most states.
@@tracerouda I pay .5% and have a three bedroom, 2 bath house on 1.4 acres and all the amenities within 5-10 minutes. It's in the UP.
This is a very informative video!
It might be less to buy a TIC but it's still crazy expensive compared to most of the country.
Sounds too good to be true. What's the catch with TICs? I've heard horror stories about shared ownership. 🤔
Prices in LA are shocking! We recently moved to NC and bought a 2,200 Sq. Ft. house on 1/2 an acre for $250K
As a NC native who moved to NYC, the earning potential is not the same as a major costal city. Jut make sure you have a good long term plan.
@matusmodern3586 yes, we moved here to retire. We only have a few more years working. Home paid for, no debt, retirement savings.
@@InimicusSolitus That's the dream. Enjoy the beautiful, very green state!
Prices in LA are stupid. I've been in LA for 40 years.
Horrible, tiny homes look much bigger and better even they are smaller.
These are called co-ops on the east coast
you make some videos really easy to digest and watch
How much do the purchasers of these properties make? Where do they work?
Easier way to get 20% off in LA: pay the neighbors to put up Trump signs and Second Amendment Rights signs all over their front lawns. Boom: 20% off.
does look if u dont mind me saying a little to Square and Narrow.. Old Buildings or the Original Builds way more Prestige as back in the day they all knew what they were doing.. Building a Traditional House.. Innit
How does a TIC differ from a co-op?
Like co-ops in NYC?
That's what it seems like
What if one of the tenant don't pay the property tax, will that burden comes to other tenant's shoulder?
999k 650k is not a good deal and hoa I kidding me! Why the f would u need a hoa for a small property! Just another scam!
TIC stands for tenancy in common, which is a legal arrangement where multiple people share ownership of a property:
What!!! 10-20% less with multiple ownerships. NO THANKS !!!
My family has a house twice the size with a way bigger yard for 70% cheaper and this was the late 90’s. my family looks at me like “how come you can’t move out or afford anything? You must be spending your money wrong.” 😑
Result of rent control, multi family owners ellis evicted tenants and remodeled. Owners can bring the unit back to the rental market but you need to wait 5 years from the Ellis date and since it's tic all owners would need to participate.
Great video! I am a lawyer in UK and may like to buy in California in the future. At 9:44 you mention taxes and liability - is it the case under RTC § 2187 that the paying owners are at risk of losing their TIC property if the non-paying owner doesn’t pay? It seems the tax is against the entire property. Thank you 😊
Also really informative video! I’ve watched for years now - would definitely like to see more like this.
In the city of angeles, people need to make deposit before haircut, because some run away without paying
Too much red tape if one of the owners wont pay their property taxes
So TIC is a coop without need permission to sell?
My father taught me “There’s a rat in separate”
We all know owners are desperate sell there homes. Many real.esrate agents are desperate to sell. They are not making money lol... Also condo are a joke it's more like apartment walls close together and sharing parking.
Don't matter if below 1 million. Minions of people credit card debt, Loan debt, many are unemployed due to high inflation recession. Most are renting now and but some still can't afford rent. Banks will reject mortgage loans and people bad credit score. And also due to high interest rates that went up again.
Lower property tax? LoL still high
Why do people live in Los Angeles? So expensive. There are other places in the country/world that are so much cheaper to where you can have money to enjoy other aspects in life. I feel like all people in LA are worried about are rent/lease payments, property taxes, utilities, food/nourishment. How does one enjoy that way of life?
Because we love the city. I love the culture and people, the lifestyle, the natural beauty / weather. As a creative all the relevant industries are here to work in and collaborate with all the top studios. I’d be miserable in a mansion in Alabama. Nothing wrong with other states or cheaper/rural areas but they’re clearly not for everyone. We all value different things in life and There’s a reason why 10 million people intentionally choose to live in LA despite everything.
lots of us have “low” rent. i rent 2 bedroom 1 bath house for $1000. it’s only if you move or buy a house today that i can seem expensive to others and that totally depends on your income.
we purposely looked only at homes under 500k in los angeles county. the mortgage was going to be somewhere between 3-4k.
Trust me people in California are tired of all the people moving to the west coast changing the culture and raising prices.
Because many of us grew up here and we have family here and value being close to them.
There are only 2 Lenders in all of southern CA that will lend for this type of property. Talk about red flags, geeez.
It seems to me like $1 million is worth nothing in these days
it's the area that is such high demand at the same time the uss currency is losing purchasing power year after year.
This lady is not making eye contact with the presenter, therefore,
I'm betting all in, that she's reading from a message board to her left at 8:44
LA market is fucking stupid. Imagine paying a million dollars for that and then $500/mo+ in HOA fees for .... what exactly? Truly insane.
There are many markets in many states where prices are very high.
@RichardDeHaven the build/finish quality you get in socal is particularly bad for the price IMO
*Since I became so rich in cryptocurrency I realise that crypto is the future cuz I invested 20k and made up to 53k as weekly profit I appreciate the help of your channel*
Waking up every 20th of each month to 105,000 dollars it’s a blessing to I and my family… Big gratitude to Wesley Shirley Christian 🙌
I'm thinking about beginning my investment journey, but I feel a bit overwhelmed and uncertain. Do you have any friendly tips or suggestions for people I could reach out to for guidance?
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I'm favoured, $90K every week! I can now give back to the locals in my community and also support God's work and the church. God bless America,, all thanks to Ms Shirley Christian 😊🎉
Hello how do you make such monthly?? I'm a born Christian and sometimes I feel so down 🤦♀️of myself because of low finance but I still believe in God
This is a huge hassle beyond a regular condo. And 25% down? LOL. This is a hard pass.
Interesting but sounds like buying into a hassle.
I dont understand why anyone would spend that much on a house.
the demand causes house prices to go up a lot faster in relation to traditional inflation
I wait until another 30% off 😢
people are running away from HOA and TIC is 10x worse lol
Shelby, I'm honestly disappointed. I really quit being interested in / relating to Monica's channel after she started posting a bunch of stuff that was just completely unrelatable like having multiple houses for seemingly no reason $100,000 car for seemingly no reason no real clear life strategy or what she was actually doing to make money it was really unrelatable. And now it's like you're talking about buying a million dollar house is being some thing that I don't know is remotely achievable and that you only sell million dollar houses in Los Angeles maybe in your portion of it you're trying to tell me the average person in La has a million dollar house who's cleaning the streets? I'm sorry but this is really disappointing and I get you got money but can you please go back to making content for normal people.
Less money in RUclips now. More money in being a real estate agent.
@@KK-pm7udthere is still money in finance RUclips but it’s easier to scam people via real estate than putting out RUclips videos.
you didn't know that shelby and monica are rich? they've been rich for the last couple of years at least with shelby proclaiming she makes $1 million a year from youtube and monica made like half a million from real estate in the seattle area. they're officially in the 1% income bracket now.
Majority of homes in Los Angeles are just under or over 1 million. So get a clue about property value in the LA market.
@@joeswanson733 I mean yeah but.. especially Monica's stuff it was just starting to get to be weird like I'm buying multiple houses in multiple places for no logical reason.
Thank you for this info! My first time hearing about TICs very interesting.
here I was all excited wondering what the amazing innovation was, seems like scheming around gov scams is all you can do over there
What???? She is a real estate agent?
yes apparently not too long ago she became a real estate agent. her sister is a real estate agent in the seattle washington area while shelby here is a real estate agent in the los angeles area.
she mentioned monica her sister makes like $500,000 a year from real estate so they're making bank alright. shelby already makes like $ 1million from her youtube thing so imagine if she also makes like $500,000 a year from real estate she is literally rolling in money these days
This is so pathetic! Just move to Vegas, it’s 3.5hrs away. You can buy a dialed in, turn key, very nice home for 750-1mm.
In LA there is a new method of purchasing soup for people who cannot afford an entire soup on their own. It's called Soup-In-Common, and it's where seven or eight people pool their resources to purchase one cup of soup. Some might say it's ridiculous and inhumane, and the systemic problems that make cost of living impossibly high in places like LA need to be fixed at the foundational level. Even if it means making rich people very angry. But I say, those sound like "tomorrow problems", and instead we should just focus all our energy on superficial band-aids.
NEVER
After reading book titled The Elite Society's Money Manifestation, I finally understood why so many people struggle with money. It reveals stuff that most people don’t even know about how money really works. Has anyone else read it?
Seems like a scam bro
@@stldweller i thought that too but it is not
Awesome video, Shelby! As always! I feel like you make some of the most informative videos on RUclips. Their structure and data are always well thought out! I see a new video from you and I always feel like it's an interesting topic and usually learn something! Including this one! I'll be looking to buy as a first time homeowner in the next few years and had never heard of TICs! Now I know! Thanks to you! It's an option! Keep up the great work!
Americans and their infatuation for tangible assets. This TIC stuff is ridiculous to say you "own" something. Just rent and put money into a retirement account and call it a day.
How do TICs compare to Co-ops?
Dont Go Cheap People
TIC are not ideal to get into that’s why they are not popular down here in SoCal. They are more popular in the Bay Area. I do not recommend buying into a stock-coop or TIC. At the very least ask to get a copy of the final pubic report or conditional public report if the final is not available, also ask to get a copy of the CC&Rs, Bylaws and Articles and read it before you make a informed decision to buy into one of these.
At the very least once you read the public report and the declarations then you ll have a better idea of what you are getting into. If you are still unsure after reading all of this then consult with a real estate attorney, so they can tell you about the pros and cons.
Again not recommended to get into one of these.
exactly, as a realtor you have to know forms of ownership but you need an attorney to clarify the terms of the ownership.
Those monthly fees mean you might as well rent
What happens if the building needs a major repair? Like a new roof or if there’s a fire or burst pipe in one of the units. Will all the owners have to pay for repairs, is it done through insurance. Or what if someone can’t or won’t pay? Would love to listen to someone who has lived long term in a TIC.
you're all on the hook if something happens to the TIC. that's why TIC aren't that popular in so cal.
I know this girl from her first video about Tesla, years ago when she bought one...
Since than I watched her videos about her actual topic she chose for her channel, but not because I'm interested in her content about houses, but because I enjoying in her vocabulary, I don't know what's that, combination of her voice & accent, it's just so calming & balanced, feminine & sounds cute.... Whenever RUclips recommends me her videos, I just click on it & listening instead of watching....
Well .. now enjoy.
You have over 1 million subs, yet can't even garner 100k views for recent videos. Disengenuous and misleading contents like this is probably what's making your viewers turn away from your channel.
A unit like that would be 50 bucks in Texas.
But you'd have to live in Texas.
@ Texas is great! Who tf would want to live in LA with all the crime etc
LA really is a disaster as far as property prices goes.
@@arcticredpanda4598 yikes, no thank you!
Not Austin
Million Dollars u Americans got to much money
Makes me wonder what it would be like if you bought the entire thing over time. It would almost act like a quadplex or so.
If you bought the whole thing, you could turn it into condos! They would then be more valuable, but it would take a lot of time and some money to do it
hi shelby
It never ceases to amaze me at how much money people spend to live in a state that taxes their people to death six ways to Sunday and yet they keep raising their taxes each year and people continue to pay.
Because it's nicer
Yeah, because it is better than most other states. Just deal with it.
It’s the best state in the country. It comes at a cost.
@@bubuup Yeah, ridiculously high taxes and soft on crime policies. Wow, two wonderful reasons to live there.
People pay for the experience . Best weather , network , jobs. I made more money in LA then in any city .
TICs are common in San Francisco. They feel more like a house instead of an apartment However, at least the ones here in San Francisc are primarily older houses and major repairs tend to be a matter of when, not if. Which when that happens, it can be a headache especially if you don't see eye-to-eye with the other owners.
I’ve been looking into co-ops lately, and these TICs seem very similar to them. Thanks for sharing, Shelby!
Never buy a co-op, townhome or condo.
When people buy a house, they should only have to worry about the mortgage, tax and utilities as the ongoing fee, not service charges as well. All the obligations of buying, all the costs of renting.
Smart, influencers becoming realtors.
Did I hear that right, 1000 a month in property taxes??? You people are crazy for living in California!!
In my state (Wisconsin) property taxes generally run around 2% of the assessed value. So the property tax on a million dollar house would be around $20K per year.
@@Rogerthatidea what!!! How is this a thing anywhere in the land of the free? We have completely lost touch with the ideas of our founding fathers that's for sure
That is Los Angeles not all of California
@@giak7525I pay $7000 a year for a house that is assessed at less than $325,000. Much of that tax is local to pay for schools. In reality, states get you one way or another. We have no HOA or any other fees except for water and sewer. The village services are excellent. In Illinois the property taxes are much higher, because of rampant corruption.
Property taxes are actually lower in California than a lot of places, and they are limited by how much they can go up overtime. Somewhere like Texas if you have the same purchase price, you’re paying double and property taxes.
California is one of the worst state to live. It is too expensive. Bad Governor! Only visit for great food places.
Sounds a lot like a cooperative home
Cooperative and TIC, both are forms of co ownerships, but they are different forms of RE Ownership. Condominium is a TYPE of housing but you can one in severalty ( 1 person) or co- own…
Great video Shelby but nah hell nah haha
Assuming utilities are individual, what about issues with roof or other maintenance? Since there's an HOA is there a board? What if its not managed well?
Like a condo that would vary from TIC to TIC. But my guess is if the HOA is low, then one an issue like that comes up everyone would probably need to pay it more than if it had a higher HOA.
Are the laws different in every state if the person fails to pay property tax?
They Look Cringe.. i like a House to look like a House not a Monstrosity
Hi Shelby happy new year!
Love it! Just starting my vlog in Los Angeles 🙌🏼
This is actually smart
I hope you take this as constructive criticism, you need to minimize your handling noise of the SM7b. Please get a stand for it Even a table stand would work. Then you can work on your proximity to the mic. You are getting so many pops and rumbling from that mic.
Is a TIC like a cooperative in NY?
It’s similar!
People buying now will get REKT so hard. Wait for 2028 to buy the bottoms!!!
I will have to watch this vlog over and over. It all sounds like huge bureaucracy. I could be totally wrong, but it seems so complicated. I guess it's something you have to be involved in. Good luck with the real estate business. I'm sure with the prices in L.A. and your unique talent, it will be extremely successful for you.
The real estate industry is dying - one day at a time. So the bureaucracy came up with this ridiculous situation - which is a very long-term commitment - and makes no sense. I'm a former realtor and I live 60 miles west of Los Angeles. This is not the Los Angeles of the past.
@@sandyrose2398 Now I understand.
Does each unit has it own gas meter and on water meter?
Like a traditional condo.
Great Video. How do find what kind of content to do every month?
Shelby, I enjoyed this vlog. Interesting and lots of information!
Shelby, this is actually the smartest explanation of the TICs I've heard! Thank you! Would there be additional cost, if any comes with a swimming pool or hot tub?
Damn those property taxes are crazy! In New Zealand my mum was complaining hers went up to $5000 a year lol, for a nice single family home. Apartments are usually only around $1500-3000 a year. Between taxes and HOA it seems you'd be paying almost as much as a month's rent, without even including the mortgage.
Your own unit? Any idea how Orwellian this sounds?
00:00 Introduction to TICs and their benefits in home purchasing.
01:00 Explaining the differences between TIC ownership and traditional condo ownership.
02:00 Shelby showcases a real-life TIC unit, highlighting its features and affordability.
04:00 Discussion about the lower purchasing prices and corresponding lower property taxes for TICs.
06:00 Addressing the stricter financing conditions and challenges in obtaining a mortgage for TICs.
09:00 Explaining potential legal issues and implications of TIC ownership.
11:00 Overview of TICs appreciation and resale potential based on recent market trends.
12:00 Final thoughts on the advantages and considerations of buying TIC properties.
Q: What is a TIC and how does it differ from a condo?
A: A TIC, or Tenancy in Common, is a form of shared ownership where buyers own a portion of a property but have exclusive use of their unit, while a condo offers complete ownership of an individual unit.
Q: Why are TICs generally cheaper than condos?
A: TICs tend to be 10-20% less expensive than condos due to factors like lower property tax responsibilities, lower HOA fees, and the less expensive process for developers to convert buildings into TICs.
Q: What are the financing options for purchasing a TIC?
A: Financing for TICs can be stricter than for condos, with some lenders requiring a down payment of 20-25% and a higher credit score; however, options for 30-year fixed mortgages are becoming available.
By TalkTube Chrome Extension (talktube.app)
This sounds like a nightmare
Are you allowed to renovate your unit or do you need approval from everyone else?
Another reason for TICs is in areas where you can develop multiple properties on a lot that currently has a single unit. For example, let's say you build tear down the old home and build two free standing homes (one with an attached ADU). If you want to sell the homes separately, you would have to do a lot split. This is a time consuming and tedious process. You have to go through a whole hearing process with neighbors. If you do a TIC, you can sell the two or even the three properties separately without going through this process.
I’ve never been to la and don’t plan to as it seems over the top expensive for what seems to be normal in other places
Isn't this practically similar to condominium model. Difficult to understand why it would be new because I doubt that every owner in apartment building would wanna renovate their own plumbing separately.
It is similar, but there are some key differences. Day-to-day live similar to a condo, but the title is different.
Play title I mean, how people hold title. Multiple people owning one property. Versus multiple people each owning individual units.
Was this Culver City?!
That doesn't look like a million dollars to me. At some point, housing market greed has to backfire. 1 million dollars for what looks like a walk up apartment? Is it a gated community?
Thanks for this vid, very interesting! These would be perfect for the coming tokenization of real estate. So many of these issues could easily be mitigated through smart contracts, without the need for future legal issues.