property in Los Angeles
Shutterstock.com
Updated last month

If you make the right decisions when purchasing, then buying a home in Los Angeles will be far more beneficial than renting both in the short and long run. But given the complexities of the home buying process, it can be hard to figure out exactly what's best for you. From finding a suitable location to determining the right size of the property, securing a bank loan, and engaging a notary, the article below will equip you for every step of the home buying process.

What to expect in the Los Angeles real estate market

The Los Angeles housing market has been one of the most profitable in the country over the past decade. It has been a hotbed for premium investors, and the prices have been increasingly spinning out of reach of LA county residents. Many experts believe the prices have reached a ceiling, and that the bubble of the grossly-overpriced market will go burst soon.

But in spite of this, there are still a plethora of affordable homes available across the city at a fair price.

What it takes to buy a property in Los Angeles as an expat

As a foreigner, you are eligible to buy a property in Los Angeles without a green card or U.S citizenship. All you need is an Individual Taxpayer Identification Number given to foreigners who aren’t qualified for a Social Security Number. And if you don’t have all the cash to make a full payment, then you can apply for a mortgage, although this depends on the type of visa you have as well as whether you have a deposit that’s up to the required percentage of the loan you are asking for.

That implies that your budget is the most important thing to consider when starting out with the home-buying process. Your budget is also determined by your choice location (which should be based on how close it is to your workplace or other places that are important to your daily life), the size of property you want, and the type of house you want - a condo, a hillside mansion, a beachfront home, etc.

According to Zillow, the current median home value in L.A is $694,200, and it is predicted to grow by 3.0% over this year. The median price of a square-foot of residential space around the city centre is $523, while that of the L.A metropolitan area is $430.

Getting the best of the home buying process in Los Angeles

If you don’t have a fat bank account that can cover the cost of buying a new home, you may have to reach out for a mortgage. But first, you need to earn a good credit score, and then find a bank that is well known for giving mortgages to expats. Next, approach the bank for the loan, and make sure you get a detailed breakdown of the cost of acquiring the loan, including the monthly payments.

You should involve a certified realtor in the entire process. The realtor may also be able to refer you to the best banks for you. The realtor will also shed more light on the various aspects of the buying process to help you make the best decisions in various respects, including the location, paperwork, closing cost, etc.

You also need to engage a notary, who will also serve as your guarantor. The notary will vet the buying process and make sure that any outstanding mortgage on the property is fully paid off, that you hand over your money to the legitimate owners of the property, and that all the required paperwork is in place.

We do our best to provide accurate and up to date information. However, if you have noticed any inaccuracies in this article, please let us know in the comments section below.