Many of us dream of living in a mansion or prestigious villa in a well-known California community. There are certainly many Beverly Hills homes that would be perfect if we could only afford them. Is there a way to determine which properties fit our needs and budget? Of course, there is.
When you are in the process of buying a new residence in a prestigious L.A. neighborhood, keep the following suggestions in mind.
- Pre-qualification – The easiest way to determine how much money you can afford to spend on a house is by talking to your bank. After giving them the necessary documents, they will calculate a loan pre-qualification amount. That determines your spending limit. While you could max out your borrowing abilities, it would be smart not to overspend. You could be facing some tough financial times in the future when you not only have to pay your monthly mortgage payments, but also home repairs, college tuition, and other unexpected bills.
- HOA – The Home Owners Association board oversees the maintenance and organization of the properties in their community. Keeping the streets safe, the parks clean, and taking care of other duties requires funding. In other words, you have to pay membership fees. Investigate how much your annual contribution will be, before you purchase a home. Do not forget to inquire about penalties against homeowners who committed a violation of the rules. Make sure you have the necessary funding.
- Property taxes – Like anywhere else in the U.S., owners of Beverly Hills homes have to pay annual property taxes and insurance. Those are expenses you should include in your budget calculations. Ask your realtor and insurance agent to calculate these amounts. Taxes can increase whenever you plan to expand the property or complete extensive upgrades.
- Transportation – Fuel prices fluctuate constantly. Generally, they go up. Make sure that you have enough money left on your bank account every month to drive to work and/or school. Selecting a house closer to your place of employment will make your venture more affordable.