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5 Things to Consider Before Buying a Home in Los Angeles During the Drought

Five years into a severe drought that prompted the governor to declare a state of emergency in 2014, Californians are making some lifestyle changes. Los Angeles gets most of its water from melted snowpack in the Sierra Nevada range and from the Colorado River. However, these sources are limited, and there are other cities — and states — vying for the same resources.

Homeowners have been asked to do their part by cutting their water use by 25 percent. These restrictions could affect buyers who may find themselves needing to upgrade their new homes. Though, local governments are offering special programs to help homeowners use water more efficiently.

According to some of the top real estate agents in Los Angeles as identified by OpenHouse Realty, a real estate data company (and a U.S. News partner), here’s what you need to know about buying a home in Los Angeles during the drought.

Water prices will affect condo buyers. If you’re looking to buy a condo (or even a town house), you should be aware of the higher homeowners association fees that come with higher utility costs. HOA dues cover electric and water charges for any community green spaces or pools, and these rates have been steadily increasing.

[Read: 4 Up-and-Coming Neighborhoods in Los Angeles to Look for a Home.]

“Of course it’s still cheaper to be in a condo than a house in terms of outdoor water expenses,” says Stephanie Vitacco of Keller Williams, but buyers should be aware that they simply don’t have as much control over water use as they would in a single-family home. Buyers should be sure to check whether each unit has a separate water meter, or if indoor water (or hot water) use is included in the HOA, which can contribute to higher costs.

“It’s a little bit scary because you’re relying on your neighbors to all use water responsibly, too,” Vitacco says.

Xeriscaping is popular, whether you like it or not. Many buyers seek a home with a pleasant and relaxing outdoor space. But in the wake of the drought, what that looks like is changing.

“Vintage homes often include mature landscaping and trees that provide a lot of shade, but when people rehab an old home, they strip everything away except its shell, and you lose some of the shade and plants,” says Tracy Do of Compass Real Estate. That’s an inescapable result of the drought.

However, this might not be such a bad evolution. In place of large trees and plants, you can expect to find many homes with xeriscaping, or landscaping that reduces the need for supplemental water. Richard Schulman of Keller Williams Realty says, “You can use things like mulch, decomposed granite and succulents to create a pleasant-looking space that is environmentally green rather than visually green.”

A lower water table could affect plumbing. It’s important to consider what’s happening under the yard of a potential home just as much as what is happening above ground.

[Read: 6 Things to Consider Before Buying a Beach Home in Los Angeles.]

“When a buyer does their home inspection, an agent will encourage them to have the sewer lines checked, too,” Vitacco says. “They will drop a camera down there so you can see exactly what’s happening in your outdoor pipes.”

Many times, homeowners will find tree roots growing into the sewer lines, bursting pipes and wreaking havoc. “Trees that aren’t being properly watered are reaching for wherever the water is, and that means they’re going right toward the sewer,” she explains.

Drought-induced incentives are everywhere. The upside to all this doom and gloom? Los Angeles County Waterworks Districts provides rebates — and sometimes even loans — on many water-saving devices like low-flow toilets and shower heads, efficient washing machines and sprinkler systems.

Buyers shuddering at the expense of watering a massive yard can take advantage of the Cash for Grass program, which pays Los Angeles homeowners for each square foot of lawn they replace with drought-tolerant landscaping. This is a great resource for buyers who don’t mind making a few improvements after purchasing a home.

Water-saving upgrades also save money. Even better news for buyers looking in Los Angeles is that all these drought-induced upgrades will save money in the long run. In California, the more water you use, the more expensive it becomes. As a homeowner, you’ll want to keep yourself in the lowest-paying tier.

[Read: A Buyer’s Guide to Burbank, California.]

Buyers should inquire about low-flow, water-saving devices in the house and yard, and perhaps even ask about grey water systems, which treat and recycle waste water. Asking about these systems and buying an extremely water-efficient house will not only help you ride out the drought, it could also make your home more valuable and cost-efficient in the long run.

Looking for a real estate agent in Los Angeles? Our Find an Agent tool can match you with the person who’s most qualified for the job.

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5 Things to Consider Before Buying a Home in Los Angeles During the Drought originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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