REAL ESTATE PURCHASE - FINANCING
REAL ESTATE PURCHASE IN CALIFORNIA
Real estate purchase in California with equity
If a real estate purchase in California is 100% covered with equity, the purchase can be completed within 14 days. In case of financing, the purchase process takes 4-6 weeks. If the financing is made through an American bank, foreigners will be required to bring a minimum equity of at least 30%, sometimes up to 40%. I will happily recommend local financial institutions specializing in real estate transactions with international buyers. The company of Kirsten Paul "Paul International" , based in Germany, can certainly answer all your questions regarding real estate purchases in the USA. Paul-International is the market leader in the financing of US real estate for European customers.
Real estate purchase in California with financing
If the purchase is being financed, I always recommend my clients to be qualified in advance by a financial institution or a mortgage banker and to receive a corresponding pre-approval letter (provisional credit approval). This non-binding and free commitment takes account of your financial situation and establishes the maximum amount which will be financed by the bank. Sellers appreciate this proof of solvency very much, which is why the purchase processing is often considerably accelerated thereby.
The right contact for your real estate purchase in California
On request, I will be happy to give you contact information of Mortgage Bankers, who will also provide you with a so-called "Good Faith Estimate". The document contains an estimate of the total cost (purchase price, closing costs, capital procurement costs, etc.) when real estate financing is concluded. There is also information on the expected credit rates and helps you estimate how much equity you would need to purchase.
Costs after your real estate purchase in California
Please also consider that you will be liable for taxes on your property, which will also be the case when the house is being sold again later. I recommend to talk to a local tax consultant. In this case, too, I can provide you with contact information of German-speaking experts.
An annual property tax of approximately 1.4% is levied, which is due twice a year.
Average maintenance costs for real estate in California per month
- House management service $ 125 - 500 / month approx.
- Pool service $ 80 - 150 / month approx
- Garden maintenance $ 100 - 400 / month approx.
- Power consumption usage-bound $ 100 - 500 / month approx.
- Water consumption usage-bound $ 50-150 / month approx.
- HOA $ 100 - 600 / month approx.
For apartments / townhouses in golf communities, the following services are usually included in the monthly household fees (HOA Fees):
- Building insurance and reserves
- Garden and landscape maintenance around the building
- Community clubhouse with pool, spa and fitness
- Security, possibly gated community with doorman
- Cable TV
Living and working for many years now in this charming area, I will gladly advise you about all possibilities and accompany you on every step of the way to your new dream house in the Coachella Valley.