The same holds true of all real estate investments. NEVER buy something that you have to feed every month with the hopes that it will appreciate in value and you'll sell it later-you never know what will happen. Nothing makes you broker faster than poor performing real estate.
As it is, however, our downtown area is run down in areas and houses the majority of our homeless population. Something to consider, when thinking of investing in the area.
It is quite possible, that downtown Los Angeles could become an exciting urban center down the road..I hope it does.
The medium price for a condo in Downtown has gone from 529k in January 2008 to 305k in January 2009. I think condos/lofts are not as good an investment as homes. They drop faster than homes and come up slower. You also don't have control of market condition. What may be the new/updated condo in an area is passe a couple years later. I know it's probably not like this in New York. If it's all you can get into than it's a great deal as a start. I just think Downtown has a long way to go. I've also heard their are some lenders not writing loans on downtown properties. If you can get a house, get a house. If you can't than a loft is a good option but I think Hollywood is a better place to put your money right now.
The Carrabba Group
Keller Williams Hollywood HIlls
Web Reference: http://www.thecarrabbagroup.com
A moment ago - Delete this answer
Let me know if you have specific questions as I am very familiar with all the current properties that downtown living has to offer.
Let me know if I can help