Why Tenancy in Common (TIC) Could Be Your Best Bet in Los Angeles

Buying a home in Los Angeles can feel impossible—but Tenancy in Common (TIC) is quickly becoming a smarter, more affordable way to enter the market. Here’s what you need to know.

What Is a TIC?

A Tenancy in Common is a shared ownership structure. Instead of buying a condo or single-family home outright, you purchase a percentage of a multi-unit property while having exclusive rights to live in a specific unit. It feels like owning your own home—without paying the full price.

Why Buy a TIC in Los Angeles

💸 More Affordable Than Condos or Homes

TICs typically sell for 15–30% less than comparable condos in the same neighborhood.

📍 Prime Locations Without the Premium

Want to live in Santa Monica, Silver Lake, Venice, or West Hollywood—without spending $1M+? TICs provide access to top ZIP codes at lower entry prices.

🏡 Lower Property Taxes

Thanks to Prop 13, many TICs retain their original low property tax rates, helping you save big over time.

🏦 Flexible Financing Options

Fractional financing means you have your own mortgage—no shared debt. Many lenders now offer up to 85% LTV, interest-only, and bank statement loans.

🏠 Great for Investors & House Hackers

TICs allow investors to enter the multi-unit market without buying an entire building. For owner-occupants, it’s a cost-effective house-hacking strategy.

🤝 Built-In Community

With shared maintenance and expenses, TIC living often fosters a close-knit, cooperative environment.

The Catch: What to Watch Out For

• TIC agreements are legally binding—review carefully before signing.

• Not all TICs qualify for conventional financing.

• The resale market is growing but still developing.

Should You Buy a TIC in Los Angeles?

If you’ve been priced out of the LA housing market, a TIC may be your real estate life hack. It’s a way to stop renting, start building equity, and gain access to prime neighborhoods—without overextending financially.

👉 Considering buying a TIC? I’ve helped clients navigate the process and can walk you through every step.