Buying your first house in LA – what’s to know?
We all know about Los Angeles. A magnificent city where it’s always summertime and where many people’s dreams come true. A place where you can party every night in exclusive clubs where celebrities go out. Los Angeles is a city where anything is possible. But what not many people know about is LA real estate. So if you are buying your first house in LA, this is the perfect place to get all the information you need.
It is very expensive
The only thing you might know about buying your first house in LA is that you will need a lot of money. The median home price in LA in August 2019 was around $619,000. Which is a 0.7 percent increase from August 2018. This is because of so many luxurious villas on the hills of Los Angeles. To make things easier, the median list price per square foot is $550. The national average is $123. As you can see for yourself, buying your first house in LA will cost you a lot of money.
The price changes depending on which part of town you want to live in, of course. But still, you will have to spare a small fortune. You can’t forget about the furniture. This is another expense you will have to cover if you are buying a house. Where are the additional expenses such as repainting and fixing some minor imperfections such as replacing doors and windows? These are all the things you have to consider before buying your first house in LA. If you have enough funds or you are able to take out a loan, this is a great step to take. Why?
The home prices won’t be dropping soon
If you were thinking about purchasing a home in LA, many experts would say that this is an amazing idea even if it costs a lot of money. The reason why they think that is the fact that the home prices won’t be dropping any time soon. So if you purchase a home, you will be able to resell it later for a significantly larger amount of money. Especially if you take good care of it and you keep it modern.
So if you are thinking about buying a house in LA, you better do it fast. There are some rumors going around that the prices will increase significantly in the near future. But, the LA real estate market is pretty stable because of so many people living there. But you also have to take into consideration renting a home as finding a home that is for sale and that suits your needs and your budget is nearly impossible.
Consider renting
Renting is very expensive in Los Angeles too. You will have to spare a few thousand dollars each month to pay rent and your bills. But if you have a relatively stable income that is a little bit above average, you can rent a nice looking, furnished house not far away from the city center. If you live with a roommate, you can easily split the bills and the rent and your monthly expenses will be much easier to handle. Many people in LA do this, why couldn’t you?
It is only impossible to live with a roommate when you have a family. But that usually means that there are two of you financing the house so even then paying rent monthly won’t be much of a problem.
Work with a real estate agent
If you are looking to buy a house in LA it is best to leave it to the professionals. Doing it by yourself can take a lot of time and you might end up making a mistake. This is why it is best to work with a real estate agent. Real estate agents know the market better than you do. They have many tricks up their sleeves if they are experienced. Working with a real estate agent will cost you a lot of money but it will also save you a lot of trouble. It is the same when it comes to moving. You can do it on your own but it is best to hire reliable movers to help you. You can hire reliable movers and get a free estimate at www.jbmoving.com.
There are many advantages of working with a real estate agent when buying a house in LA. But it is extremely important to do so when you are buying a house for the first time. A real estate agent will help you gather all the paperwork and fill it out. Real estate agents can also negotiate and lower the house price if possible. They know best what makes a house worth so much and you probably don’t.
Conclusion
If you are thinking about buying your first house in LA you have to know all these things. You also have to take into consideration that life in LA is very expensive and that you need a well-paying job to be able to finance all your needs. Especially if you have a family. That is why it is best to first consider renting and then buying. But even if you buy a house, you won’t regret it.
Jack Lutz is a long-time real estate expert. For the past two decades, Jack has worked for a large real estate company and he is an expert when it comes to investing in rental real estate. Currently, he lives in Brooklyn with his stay at home wife and two daughters. On the weekends, he prefers to spend time with his family, since on workdays he works long hours. Jack’s plan is to invest in rental real estate and retire early.