Home Buying in 90210>Question Details

Nader444m, Home Buyer in 90210

I am 20 years old and I have a question about buying/renting a home in the Beverly Hills or Bel-Air area.

Asked by Nader444m, 90210 Wed Jul 29, 2009

In reference to the above question, I have been thinking about whether to buy or rent a home in the Beverly Hills or Bel-Air area. First, I am 20 years old and I have a lucrative business that I consider my job that makes around a $100,000 a year. I have been looking at homes in Beverly Hills and Bel Air and I like some of them (I'm looking in the $2-3M range) and my only problem is that I don't know if I'm making enough to afford a home around that price or if I should look under a million dollars and also since I am 20 I don't have much credit established other than a few credit cards that I have.

So is it difficult to get approved or is possible or impossible? And I was also thinking about leasing a home in these areas long-term but I'm not sure if I would just be throwing my money away or paying someone else's mortgage. Any 2 cents would be appreciated. Thanks.

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31
Josh Goldstein (424-226-8069)’s answer
I agree with Jodie, below. The down payment amount will be very important in how you qualify for a loan, but since there are a lot of factors considered in getting a loan, you will need to consult a lender/mortgage broker so they can review your qualifications and advise you properly!
0 votes Thank Flag Link Sun Feb 2, 2014
BEST ANSWER
Hi Nader,

Congratulations on having such a great job, and wanting to buy your first home. I agree that buying would be a better option if you can afford it, and now is a great time to buy. You don't indicate if you have a down payment saved up, so its hard to know if you would be able to afford and qualify for a home in the $2-3 million range. The first thing you need to do is speak with a lender. They can run your credit and check your debt to income ratios etc. There are numerous calculators online that can you give you an idea as to whether you would qualify, but without speaking to a lender, its hard to know if in fact you will qualify.

If you need a recommendation for a lender, I am happy to provide you with one. After you've spoken with the lender we can discuss whether buying or renting makes more sense for you. Please let me know if I can be of further assistance.

Best regards,

Jodie
0 votes Thank Flag Link Wed Jul 29, 2009
just apply and wait and if not accepted re-apply
0 votes Thank Flag Link Tue Mar 4, 2014
Having a resource to help with HOA information and documents makes life easier for real estate agents. Recently, when selling a home in Ohio, Association Online provided me with all the HOA details for the listing, and then provided all the documents - by-laws, financial statements, covenants, etc. They made sure the package was complete, making my work easier. Their web site is well organized and very easy to use - http://www.associationonline.com . Call their team of experts – they are great to work with (970-226-1324).
0 votes Thank Flag Link Mon Feb 3, 2014
Being 20 with little credit and a new job, I would not think you would qualify for a loan anywhere close to 2-3M..
0 votes Thank Flag Link Sun Feb 2, 2014
You should be talking to a lender. Call Karen Chiu.

Karen Chiu / Branch Manager
CA BRE # 01712238 NMLS # 611778
kchiu@rpm-mtg.com
Phone: 800.385.1485
Cell: 626.437.4481
Fax: 888.606.9347


If you are qualified for a home loan, I'd be happy to help you.

Theodore Trentman
http://www.LoftLivingLA.com
0 votes Thank Flag Link Sat Jan 4, 2014
Hey,

If your'e making 100k at 20, then you probably will be doing even better in years to come. Buying property can also make a good investment and even though it will eat up a lot of your money you will at least get to live in a nice house, and gain some equity too. I don't know if you can get approved, it depends on your situation but I can find out for you if you would like. It all depends on where you think you will be in the years to come, and also how much down. Maybe you could look for a condo in these areas and see how that goes for a year. Leasing is also a good idea and isn't really throwing your money away. Don't forget you don't have to pay expensive property taxes, manage the property, the lawn etc, and if anything goes wrong you have the landlord fix it.

Hope this advice helps you a bit, and if you are looking to get a conventional home mortgage loan, let me know.

Yanni Raz, email: yanniraz@gmail.com phone: 310-619-5557
0 votes Thank Flag Link Fri Dec 27, 2013
Hello Nader, let me help you. Contact me through info@erdek.eu. Regards, René de Koster.
0 votes Thank Flag Link Mon Dec 23, 2013
818-730-8635, rholcwl@pacbell.net.
0 votes Thank Flag Link Fri Dec 20, 2013
Another blog post: 10 Surprising things that can lower your credit:

http://www.trulia.com/blog/brandon_douglas/2012/01/10_supris…


Brandon Douglas
3rd Generation Los Angeles Realtor
2nd Generation Beverly Hills Native
Coldwell Banker
310.801.1333
0 votes Thank Flag Link Sat Jan 14, 2012
Dear Nader:

If you are still looking in the Real Estate market, I would be more than willing to provide you with first hand experience in Beverly Hills. From the schools, government, parks and recreation, public safety...

Please refer to my blog post:

http://www.trulia.com/blog/brandon_douglas/2012/01/beverly_h…

Brandon Douglas
3rd Generation Los Angeles Realtor
2nd Generation Beverly Hills Native
Coldwell Banker
310.801.1333
0 votes Thank Flag Link Sat Jan 14, 2012
Establish installment debt history, get a car loan, and an appliance loan pay them on time for 12 mos preferably 24. If you want a good interest rate you will need this history. Do not pay off the loans early. 24 mos of 24 consecutive payments plus excellent revolving debt payment history, shows you are credit worthy. Do not apply for credit more than twice a year. You can have auto dealers run your credit several times in a 30 day period and it is considered one inquiry, same as a home loan. Credit bureaus allow you to shop for this kind of credit, but revolving debt is always considered a single inquiry each time you complete a credit application.
0 votes Thank Flag Link Mon Jun 6, 2011
With the info you provided you can not afford a home over 2 million. You must have good credit to borrow money these days so I'm sorry but you will probably have to wait. My suggestion is to rent, don't spend too much, and save your $$$ and clean up your credit. Most people can not jump into a home that is ideal from the start, they have to buy something smaller or a condo and then "move up". Don't overextend yourself.... that's how so many got into trouble. Have patience, spend less than you can afford and make sure you are well informed.
0 votes Thank Flag Link Mon Apr 25, 2011
Hello,
I would be happy to assist. The first thing you need to do is speak to a couple of mortgage brokers, fill out some applications and see what you can truly afford to buy and also what is realistic in what you want to pay and not interfer with you personal life. You are 20 yrs old and you also want to have fun.... finding a balance to both personal and financial is a must. Afterwards, work with an agent that is willing to show you around and show you different types of properties. Not just homes, but also condos, etc. There are a number of responsibilities that come with different types of properties and you should be aware of what those types of maintenance are and will be. I would be willing to go over these things with you. Give me a call.
Sincerely,
Richard "RJ" Kas (SFR, SRES)
"Representing the finest properties from Los Angeles worldwide"
KAS Properties - Coldwell Banker Previews International - Beverly Hills East
9388 Santa Monica Blvd, Beverly Hills, CA 90210
310.859-5334 office - 310.488.9826 mobile - 310-273-0670 fax ATT: RJ
RichardKas@gmail.com - http://www.RJforLA.com - DRE: 01352771
Sellers Buyers Investors Leasing Consulting
0 votes Thank Flag Link Sun Sep 19, 2010
Your "lucrative business" will need two years of Federal Tax Filings with a debt-to-income ratio no higher than 45%. That will be the primary underwriting decision for determining your loan amount. ..... Happy funding, Rudi
Web Reference: http://www.umboc.com
0 votes Thank Flag Link Thu Jul 15, 2010
It might be a little too soon...You may be able to realistically afford something in the 400-450 range. Dont forget...there are many more expenses that come with owning a home. Insurance, Property Taxes, Association Dues (condos/community living), maintenance, etc. You dont want to be working just to support your home. You want to have breathing room.

If you would like for me to guide you through the process, please feel free to call or email me.

Roger Perry, Realtor/Broker
Rodeo Realty, Beverly Hills
(310) 600 1553
rperry@rogerperry.com
0 votes Thank Flag Link Tue Jul 13, 2010
if you have not already, now is the time to get out of a rental and into the right home
0 votes Thank Flag Link Wed May 26, 2010
If you are pulling in $100,000 you will not be able to afford a home more than $1 dollars on income alone. You may want to look at something in the $200-$400K price range.
0 votes Thank Flag Link Sat Mar 27, 2010
Making $100,000 a year is great if you live any where other then Beverly Hills. Dont forget all of your property tax and everything else involved. Property tax can be very high in 90210. It sounds like you may want to lease for now to get more established even if its short term. Your Lease will be much cheaper then a mortgage and with little credit this may be your only bet. Getting qualified these days not only is a challenge but you must have a high credit score and have many months if not a couple years reserve in your Bank Account.
0 votes Thank Flag Link Fri Sep 18, 2009
I think it would be far better to buy something that isn't going to stretch your budget nor back fire on you in a year or two. Also, at twenty do you really want to be dealing with the additional hassles of a home (gardener, cleaner, security, heating, cooling, property taxes etc). Those are all additional costs that would be either lowered or non existent in a condo (because of HOA fees).

Here is a property that I though would suit your age and budget.

Stunning 1 br/1 ba condo in the heart of Beverly Hills in slick 10 unit building completed in 2004. Chic residence features hwood floors throughout, recessed lighting, & inlaid ceiling w/ crown moldings. Chef’s kitchen w/ stainless steel Viking appliances and granite counters/backsplashes. Expansive master w/ large windows, sumptuous bath w/ carerra marble dual vanity & shower. Huge patio, 2 sidexside spots, storage, in unit w/d, keyless entry, 1 yr paid membership at Sports Club/LA BH included.

Good luck with your property search. I hope you find your idea first home.
0 votes Thank Flag Link Sun Sep 6, 2009
Based on the information you gave it would make more sense to either rent or to buy a condo/loft in the $350k-$500k range where you can get an FHA loan and still put 10% down. If you buy you can start to build equity and you will have the tax deduction (loan interest & property taxes) to write off againt your income. There is also a $8,000 government credit to first time buyers if you buy this year and an additional $10,000 tax credit if you purchase new construction. These benefits may be pulled off the table soon so double check before you buy anything. There's also a lot of affordable condo/loft inventory in downtown LA, West LA and in the Marina Arts district. I'd look at the cost of renting one of these condos vs. the cost of owning one (after tax deductions) to see what makes more sense to you.

Good luck!
0 votes Thank Flag Link Wed Aug 5, 2009
Hi Nader, first and formost you need to get preapproved. It is imperative in this market to be totally ready. While you going thru the process, start prioritizing your wants and needs in a home. Also be aware in todays market you will need about 20% as a Down payment , hence that will give you an idea what you will be able to buy. Even though you make $100k which might be very impressive for some one of your age, unfortunately in BH & Bel Air it does not give you a lot of home buying power, hence you might want to consider a Condominium or different location. Either way do not get discouraged your are young and keep saving and keep increasing your earning power to reach your goals. Keep the goal in front of you, if you can see it you will reach it.
Web Reference: http://www.endrebarathcom.
0 votes Thank Flag Link Fri Jul 31, 2009
Hi Nader444m,

It is a great time to get in the market in my opinion, however I understand if the homes under $1M do not fit the lifestyle you would like. In that case, I would highly recommend renting a place where you can save significant amounts of money and be prepared to buy down the road. Why throw your money away into a high priced rental, when you can sacrifice for the short term and eventually achieve your goal of owning the property you want.

Another option would be to buy a nice investment property for now in the areas adjacent to Beverly Hills, and by the time you are ready to move up you will have 2 properties (most of my wealthiest clients achieved their wealth through real estate and owning multiple properties). This may be a great option for you.

I'm happy to help.

Sincerely,


Grant Linscott
Keller Williams Realty
323.333.6222 cell
grantlinscottproperty@gmail.com
0 votes Thank Flag Link Fri Jul 31, 2009
Hello Nader,

I've compiled a list of of six homes listed for $700k to $800k within three or four miles of Downtown Beverly Hills. Three are up Benedict Canyon directly above Beverly Hills and are actually in the city. Two are in the hills above the Sunset Strip west of Lookout Mountain. One is in Cheviot Hills.

I understand that your home is an important part of your business and these properties offer a fine start in terms of expressing who you are. Please feel free to contact me if you'd like to see the list and get more information on these excellent properties.
0 votes Thank Flag Link Thu Jul 30, 2009
Even with your $150k in savings, you would not qualify for a $2-3M home making only $100K per year. For a home loan over $2M, you're in Jumbo Loan Pricing & you'll be required to put 20% down.

Buy a home that you can afford in or as close as possible to the zip codes you're interested in (talk to a direct lender), you're only 20 so WTG on making some pretty kick butt $$ at that age! By the time you're 25 I'm sure you'll be making 300% more money in which case your chances will have skyrocketed to possibly being able to afford a $2-3M home!

emilyknell1@yahoo.com
0 votes Thank Flag Link Wed Jul 29, 2009
I must be missing something. I can't imagine someone buying a home in that price range when they earn $100k a year. It's probably still a good idea to get with a lender. Your lucrative business that you consider your job will most likely need to be the sort that can be verified for mortgage purposes. You may meet a great lender now who can put you on the right path and get with one of these agents here on trulia that are in your area and find out what's out there - maybe set some goals.
0 votes Thank Flag Link Wed Jul 29, 2009
Hi Nader,
My suggestion is that you speak with a loan officer who can answer your questions about finances. Your age makes no difference, so don't let that stop you. If you would like a referral, I know someone from BOA.
As far as Leasing vs Owning, you are building equity when you own Real Estate. Real Estate is usually a part of a financial portfolio, along with stocks, bonds and other investments
0 votes Thank Flag Link Wed Jul 29, 2009
Hi Nader,

Why don't you speak with a lender before ruling out purchasing, and secondly, you might want to consider some other areas that might not be as expensive as Beverly Hills or Bel-Air. You could purchase something that you will be comfortable in for at least 5 years, and then if you outgrow that place you can see where you are financially and perhaps buy in Beverly Hills/Bel Air at that time.
0 votes Thank Flag Link Wed Jul 29, 2009
I have about $150,000 in savings that I add to each month that I don't use. I would consider leasing a nice home in one of those areas if I cannot buy in those areas for that amount (because let's be honest, you are probably not going to get a very nice house for under a million dollars in the 90210 or 90077 areas). But a lot of the leases are not nice and so small. Anyway, maybe I should wait several years and buy at a later time, idk.
0 votes Thank Flag Link Wed Jul 29, 2009
Did you ever find your home?
Flag Sat Jan 25, 2014
Hi Nader,
This is a great question which I have been asked many times, should I buy or should I rent?
Well, as the other agents already mentioned, your first step is to talk to a reputalbe lender who can run your credit and tell you how much they can pre approve you for. I depends also on how much down payment you already have. I'll be glad to recommend you to lender's my clients have worked with.

Hope to hear back from you,

Tova Sarir
Keller Williams Beverly Hills
310-497-1930
homes@tovasarir.com
http://www.tovasarir.com
Web Reference: http://www.tovasarir.com
0 votes Thank Flag Link Wed Jul 29, 2009
Hi Nader444m,

The first person to talk to would be your lender. You have good income, however unless you are making a significant downpayment you will most definitely be looking at property for well under $1M. Leasing a property could be necessary at this time for you to build up your credit, but only a lender will know what the best possible options are for you at this time. Please let me know if you would like me to recommend to you a few excellent lenders and I'm happy to assess from there where you would like to be in the next few years.

Sincerely,


Grant Linscott
Keller Williams Realty
323.333.6222 cell
grantlinscottproperty@gmail.com
0 votes Thank Flag Link Wed Jul 29, 2009
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