There is much more to buying a luxury home in California than purchasing a house. There are so many more factors to consider before you make your purchase.
First of all, we must define what a “luxury” home is. A luxury home is a property that is priced in the top 10% of the local market. This article will explain five aspects you need to understand before buying your property. These will provide you with a better living experience and help you get better returns on your investment.
It’s a good idea to take your time and do your due diligence on what you believe to be your dream home before you get in escrow. After all, this is a significant investment- so you should consider everything from the location to the neighborhood’s future. You don’t want to end up hating your purchase in a few years.
5 Things to Consider
Below are five things to consider before buying a new luxury home in CA.
The primary thing you should remember when buying a luxury property or home is the location. Be sure to choose one close to dining/shopping, good roads, access to public transport, good schools, and good healthcare facilities. You may also want to consider proximity to good golf courses and beaches. Once you consider these things, think about the property’s design and quality.
In addition to the above, the home should be in a safe neighborhood. If you have children, you should make sure that there are children nearby that your children can play with so they don’t get lonely.
If you have pets, you’ll also want to learn about local pet ownership rules before you consider buying a new luxury home in CA. Some areas do not allow pets, even if they are domesticated. It’s best to find this out before you tour a home or move instead of after so that you know whether or not your furry friend can come too.
The next thing you need to consider is the property size- which is relative. Many people think about what size they want their home to be but never give much thought to the size of the homesite or land the house is sitting on. However, it is essential to think about your lifestyle and the space you need to maintain that lifestyle. For example, if you have a large family, you’ll need more square feet and room to play; don’t rule out a future family based on your needs today.
The size should be comparable to that of the other homes/lots in the area. For example, if the average home in your area contains two or three bedrooms, but yours has six, you may never get the total value of your home when you sell it. Plus, these properties don’t typically perform as well on the market compared to others, though they may still eventually sell. Luxury homes in ‘affordable’ neighborhoods traditionally take more time and education to sell. Keep this in mind when browsing.
Many luxury properties will have HOAs, or homeowner’s associations, with HOA fees. It’s important to know that this does not apply to all luxury properties. Suppose the home you buy has HOA fees. In that case, it’s essential to determine how they affect your monthly bills and how the association calculates the fees. Typically, HOA fees include maintenance of common areas, property management fees, landscaping, and insurance. Every HOA is different, and the things they look out for and control can change drastically from community to community.
Remember that communities with world-class amenities such as fitness centers, golf courses, swimming pools, and more typically have higher HOA fees. The fees alone shouldn’t sway your decision. The community amenities and conveniences could outweigh any costs. They may be worth the price for you or the next family that owns your home. Even if HOA dues don’t affect your decision, they may alter another homebuyer’s opinion, so it’s essential to consider them.
Some HOA dues are as low as $100/month, while others will be $1,000/month or more. Ask your real estate agent or an HOA employee for more information about your future home’s monthly dues.
Before you buy a California luxury house, you need to consider the extra costs involved. Luxury homes’ taxes and insurance costs are much higher than a typical home. Below are a few tips to prepare yourself for these expenses:
- Sit down with your realtor and determine what you would be willing and able to pay for taxes and insurance before you start your home search. This way, you don’t have to worry about unexpected costs when finding your dream home.
- Next, meet with your mortgage specialist at your bank and find out about rates associated with various types of homes. If they have special rates/deals on specific types of properties, it may save you money over the life of your loan. Some programs help with your downpayment and other costs, but when it comes to most luxury residences, those programs are out of reach.
- When you start shopping for a home, look at asking prices and the tax rate assigned to each one. This way, you won’t have to worry about surprises waiting behind closed doors when comparing properties.
Security and amenities become a top concern when buying a luxury property in California. A gated community is best because it keeps out unwanted visitors. Additionally, it’s a good idea to make sure that there are other layers of protection as well, including smoke detectors, security cameras, and an alarm system.
If you want more peace of mind, consider choosing a luxurious house in California equipped with home automation features. These include automation features like smart locks, automated lighting, programmable HVAC systems, whole-home security systems, and more. Another popular amenity that can help lower your electric bill and make your property eco-friendly is solar panels.
Suppose you are making such a significant investment for convenience. In that case, you want amenities such as a clubhouse, concierge services, gyms, exercise classes, and more. This way, you never have to leave your community- convenience is at your door.
Wrapping It Up
These five things are just a few you need to remember before buying a large, luxurious California house. Some of these are obvious, but it is better to be overprepared than to run into unexpected problems. Many benefits are associated with owning a luxury home in California, but it’s not for everyone. Make sure you do your research and due diligence before making any decisions.
Be sure to prepare yourself before making this investment and know you’re ready.