Buying real estate in Los Angeles
Buying a home in Los Angeles can be the right choice if you plan to stay in the United States for a long time. If you enter the market at the right time and make smart decisions when purchasing, buying a home in LA will be far more affordable than renting in the long term.
However, given the complexities of the home-buying process in the US, it can be hard to figure out exactly what's best for you. From finding a suitable location to determining the right property size, securing a bank loan, and engaging a notary, the article below will equip you for every step of the home-buying process in Los Angeles.
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. In mid-2023, home prices in Los Angeles were up 4.3% compared to 2022, with a house selling for a median price of around $1.0M USD.
What it takes to buy a property in Los Angeles as an expat
As a foreigner, you can buy property in Los Angeles without a green card or US citizenship. All you need is an Individual Taxpayer Identification Number (ITIN) given to foreigners not 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 and whether you have a deposit that's up to the required percentage of the loan you are asking for.
Naturally, your budget is the most important thing to consider when starting home-buying. Your budget is also determined by your choice of location (which can be based on how close it is to your workplace or other preferences, the size of the property you want, the type of house you want - a condo, a hillside mansion, a beachfront home, etc.).
The current median home value in Los Angeles' metropolitan area is estimated at around $1.2 million. However, how much you pay per square foot can vary hugely from one neighborhood to another. Make a price comparison across neighborhoods in Los Angeles to see where you will be getting the most value for money.
Getting the best of the home-buying process in Los Angeles
If, like most of us, you don't have the kind of bank balance to cover the cost of buying a new home in Los Angeles, you will almost certainly need a mortgage. But first, you need to maintain a good credit score and find a bank that is willing to give mortgages to expats. Approach the bank for the loan and ensure you get a detailed breakdown of the cost of acquiring the loan, including the monthly payments.
You should involve a certified realtor in Los Angeles to help you throughout the process. The realtor may also be able to refer you to the best banks for you. The realtor will 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 in Los Angeles, 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.
