The risk of acquiring or renting real estate abroad is associated with the need to face the laws of another state, language barriers, currency fluctuations and the mentality of local residents. But all this does not stop those who intend one way or another to be puzzled by the issue of housing in the United States. When heading to California, it is good to know that real estate in Los Angeles is very popular.
Which is better: buy or rent
In the last decade, the formation of prices in the American real estate market very much resembled the famous roller coaster: now rapid upward movements, then a sharp drop, which instantly depreciated not just individual objects, but entire cities.
Buying real estate in Los Angeles for personal use involves assessing the accompanying factors: the prospects for life in this city, employment opportunities, climate.
The choice is of great importance: a house or an apartment? The fact is that over time, buildings become obsolete and are sent for demolition, but land is always valued. Even if the building on the site is dilapidated, it will still be possible to sell it at a high price.
If you are going to become an owner with an investment purpose (housing is purchased for renting), you need to know that the City of Angels is one of the ten settlements with the best rental potential in the United States: a large number of able-bodied people with a low unemployment rate.
In addition, the purchase of housing in the amount of $ 500 thousand gives the owner the right to participate in the EB-5 program, which involves:
- provision of a temporary green card to the owner and his family;
- replacement of a temporary residence permit for a permanent one after 2 years, provided that the property remains with the foreign owner;
- in another 5 years - the possibility of obtaining citizenship.
But buying a house in Los Angeles is a pleasure designed for wealthy foreigners. That is why many are forced to rent living space. Approximately 35% of the US population lives in rented apartments - this eliminates many problems when drawing up a sale and purchase agreement and the need to look for a large amount of money at once, but this option cannot be called economical.
Los Angeles Property Types
All types of real estate in LA are divided into two categories:
- commercial;
- residential.
Investing in a non-residential fund is profitable due to the large, and, most importantly, constant demand for it. Commercial real estate in Los Angeles is divided into 4 types:
- Offices - usually we are talking about business centers or office buildings, in which several companies can be located at once.
- Production facilities - warehouses for storing products, factories, enterprises that manufacture certain products.
- Retail facilities - this group includes showrooms and shops.
- Multi-apartment buildings with more than 4 apartments for rent.
As for the objects for life, they can be divided into the following categories:
- House - this includes Single family house (separate house for one family), Duplex (duplex - house for two families), multi-unit house (for several owners). Most often located in the suburbs, they have a swimming pool, backyard and lawn on which Americans have picnics and parties.
- Condominium - consists of several apartments, also has an on-site swimming pool, laundry, and sometimes a gym. All tenants can use all these benefits for an additional fee.
- Townhouse - two- or three-level apartments combined by a common wall, each of which has a separate entrance and a small courtyard.
With regard to property rights, there are three options: full ownership, partial or participation in a cooperative.
The main difference between a cooperative is that the owner of an apartment cannot sell or rent it out without the consent of the owner company. This slightly knocks down the prices for this type of housing, and therefore the demand for it is very high.
A separate group is made up of luxury real estate in Los Angeles, located in prestigious areas overlooking the sea. Most often, in this case, we are talking about multi-level villas with full infrastructure, the cost of which is already calculated in the millions.
How to look for housing
There can be several options for finding suitable housing (and each is good in its own way):
- Contact intermediaries. It is better to search for these companies on forums where you can read reviews and recommendations so as not to face scammers. The disadvantage of this method is the payment of commissions to the real estate agency. Typically, the check is 15% of the monthly rental housing.
- On one's own. You can search on the Internet at specialized sites. Most Popular:
- Craiglist.org - there are many apartments directly from the owners, you can contact them by phone numbers indicated in the ad.
- Zillow.com - Large selection of agency deals.
- Airbnb.ru - this is a must-see for those who are looking for housing for a short time.
It is also necessary to pay attention to groups in social networks where "experienced" migrants who have already passed the initial stages of immigration can give practical advice.
You can also rent or buy a house in the suburbs of Los Angeles without intermediaries. To do this, you need to drive through the areas that interest you. Homes for sale or rent are usually marked with For Sale, For Rent, or Leasing signs.
Areas and prices
Los Angeles, like any major city, is made up of reputable and reputable neighborhoods. This should be especially taken into account by those who are just moving abroad and are not yet familiar with the peculiarities of life in the new conditions. The thriving neighborhoods in LA are located to the west of Fairfax Street, which divides the city into north and south.
It is also safe to live in the following areas:
- West Hollywood,
- Sherman Oaks,
- Studio City,
- Encino,
- Glendale,
- Burbank,
- Santa Monica.
Although, before renting or buying an apartment in Los Angeles, you need to consider that in Santa Monica, you can face all the "delights" of a resort town: noise, tourists, high cost, not always peaceful behavior of lovers of alcohol and weed.
Also, this place was chosen by immigrants from Ireland and Britain, because there are many drinking establishments with their national flavor. But West Hollywood is home to the city's largest Russian-speaking community.
The average home price in LA is $ 2.8 million (data as of February 2021), or about $ 11 thousand per square meter. An apartment in downtown Los Angeles will cost between $ 550,000 and $ 2,500,000, depending on the number of bedrooms. The plot of land will cost from 150 thousand to 100 million dollars.
What else you need to know about the City of Angels:
- Beverly Hills is a glamorous and expensive place, home to many movie stars and celebrities. There are many schools, shops and restaurants here. The most expensive houses are located north of Sunset Boulevard in a hilly area.
- Bel Air is one of the most prestigious areas. There are practically no apartment buildings here. Therefore, if you are interested in a studio apartment in Los Angeles, you will have to look for another area. Mainly in this part of the city, wealthy families live in luxury villas.
- Malibu is a favorite destination for actors, surfers and students. Locals call this "27 miles of scenic beauty," with many beaches and recreational areas.
- Pasadena - or "city within a city". This is a cozy, calm, comfortable place for life. About 11% of the residents are Armenians.
Home prices in Los Angeles depend on many factors. Some of them:
- location;
- number of bedrooms;
- availability of infrastructure;
- equipment and furnishings;
- remoteness from the center and proximity to the sea;
- general state.
According to the districts, the prices were distributed as follows (purchase in US dollars):
| District | Price |
|---|---|
| Santa monica | 2 500 000-2 700 000 |
| Beverly Hills | 5 000 000-10 000 000 |
| Malibu | from 6,000,000 |
| Bel air | 4 000 000–5 000 000 |
| Brentwood | 5 000 000–6 000 000 |
How much a house in Hollywood costs depends on its location, squareness, livability and access to the sea. The most expensive mansions are located on the first line, for which they ask from $ 10 million.
If we talk about renting, then the choice of options will also be quite wide (prices are in dollars per month):
- room - 600-700;
- apartment - 1,000-1,500;
- guest house - 1,500-2,000;
- townhouse - 2,500-3,000;
- apartments near the sea - 3,000-5,000.
Cheap Los Angeles real estate is located in the San Fernando Valley and Hollywood. It is easy to find areas here where you can get a job for $ 15 a night in a hostel or for $ 1,000 a month in a modest studio apartment. You can buy inexpensive housing for 1-2 million dollars, but you have to look for it.
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What documents are needed
All real estate transactions are concluded with the participation of brokers, and it takes about 30-45 days to complete the contract. The buyer needs to provide:
- Confirmation of the required amount.
- Passport.
- A copy of your passport.
- ITIN Taxpayer Identification Number (issued within 1-6 days).
- Confirmation of opening a bank account.
The seller will need Title Search - the results of checking the "cleanliness" of the object (it can take about 10 days to receive the document) and permission from the cooperative or condominium, if the apartment is included in them.
When renting a home, the buyer will have to provide their credit history. In the United States, this fact is given special attention.
In the absence of a credit history, you need to prepare any evidence of income and solvency: a certificate from work, a bank statement, tax returns, etc. You need to be ready to pay the rent for the year in advance if the owner has doubts about the solvency of the future tenant.
The lease agreement specifies the address of the object, parties, lease terms, terms. The package of documents for residents and non-residents differs only in that the latter will have to provide confirmation of the legality of their stay in the States.
How much will the deal cost
Driving prices into your search for "home in Los Angeles", do not forget that you will need to add the costs that will arise during the transaction to the result found:
- registration of real estate will cost the owner an amount equal to 0.2-0.5% of the cost;
- broker services (most often paid by the seller) - about 6% of the transaction amount;
- services of a lawyer (each party pays its own consultant) - 0.5-1% of the price of the object;
- opening an account - from 1% of the cost, but not less than $ 1,000;
- checking the subject of the transaction for legal "purity" - about $ 800.
When renting a home, the tenant will have to pay for the services of a realtor (if he used them) and the rent immediately for 2 months.
What else needs to be considered
Many questions may arise in the process of preparing a deal. Let's dwell on the key points:
- Technical assessment of the object. Having picked up the option, look into all the corners and find out as many details as possible about the construction of the building. But even this does not guarantee that cracks have not gone into the foundation, for example. The safest way is to order a technical condition check at home. This will result in a certain budget, but it will allow you to avoid constant spending of rhinestones after purchasing an object.
- Getting to know the neighbors. You need to talk to them before the deal. Do it on a separate day and without a realtor. Ask them about the area, its livability, about the previous tenants and owners. Pay attention to the residents of your neighborhood - you will have to meet with them every day.
- Choosing a mediator. American laws can be a stumbling block for a foreigner. In the process of concluding a deal, many papers will have to be signed and a large number of documents have to be drawn up. Entrust this question to specialists who are well versed in the matter. If you're lucky, you might even find Russian speakers.
- Assessment of your solvency. Housing prices in Los Angeles are high. In addition, the deal will not be limited to just the amount of the contract. To it you need to add the costs of taxes, intermediaries, checks and other procedures. Make a general estimate, add some amount of contingency to it, and evaluate if you can afford that budget.
- The correct choice of area. First you need to take into account the presence or absence of the objects you need: school, kindergarten, metro, shops, laundry, cafe. Calculate how long it will take to get from home to work and back. Read reviews on the internet. Walk around the area at different times of the day to understand who you will have to coexist with.
Outcomes
The choice of accommodation in Los Angeles is as great as the prices for it. The greatest demand is for detached houses, apartments in condominiums and cooperatives.
To conclude a transaction, you will have to prove your own solvency and make sure that the object does not belong to third parties and is not burdened with debts.
In the prestigious districts of the city, the cost of real estate when buying starts from 4 million dollars, but you can rent an apartment or house from 1.5 to 5 thousand US dollars for 1 month.
