I’m getting a divorce. Now what?
Dear William, Lisa and Kim,
I’m getting a divorce. I want to buy a property and move on. I am ready for the next chapter. My ex is fine financially and I think it’s going to be fine, no drama. Where should I buy in LA if I want to really work on my equity? I have about 1m to work with and I would prefer to spend about $6000/mo. What do you think?
Patti R, West LA, Los Angeles
Hi Patti,
If there is a silver lining in all this, it is that you are about to experience a whole new chapter in your life - and you’re already asking smart questions that will drive your future.
Be prepared for the unexpected scenarios. Ask your lawyer about the time period you can not purchase property. All these details are specific. Just because your ex is fine with you now doesn’t mean they will be next week. It’s very important to pay attention to the timing your lawyer advises you.
With 1 million in LA, and you want to spend 6000/mo, I’d buy a house in the 2m or less range in the Del Rey neighborhood of West LA and I would renovate it and live in it for two years minimum and sell or lease it and move on. We recently sold a property in 90230 Del Rey area for almost 1 million over what the clients paid for the property originally because they took care of the high end vibes and details of the house and made it worth the price tag.
We would also be looking for a property in the Eagle Rock/Highland Park area of North East LA (the area is coined “NELA”) where the topography is gorgeous and the neighborhood restaurant brunch scene is on fire. We recently sold several properties on the east side and you can find affordable options where your equity will grow quickly.
View Park/Baldwin Hills area is also a hot topic for investment because of epic views of the city and the mid-city location. This is an area that will likely double in value over the next 5-10 years.
Right now, rents are skyrocketing for high end leases. Make your new property stand out by refreshing it, modernizing it and don’t cheap out on finishes. Buyers and tenants know finishes often better than sellers. The best advice I can provide you is make this the best chapter ever in your life and live in your reinvented lifestyle for a minute and soak in the new you.
When I was single for the time after a heavy breakup, I remember changing the linens, getting new things and most importantly a new property. I sold everything on Craigslist in 2 days!
Treat yourself to the best remodel and then let it go when you’re ready - so save some of your cash for lavish finishes. Make sure you sell after 2 years so that you can collect $250,000 without paying capital gains. If you decide to remarry (it happens when you least expect it), you’ll be able to claim $500,000 - but I highly doubt you’re even thinking that would ever happen at this point.
Hope all this helps:)
William, Lisa and Kim