Just recently, a 105,000-square-foot megamansion known as The One, located in the Bel Air section of Los Angeles, was named the most expensive home in America after being listed for $295 million. But despite the considerable price tag, luxury real estate in Los Angeles is breaking records. Reports revealed that the sales of properties priced at $10 million or more doubled in 2021 compared with 2019, with a total of 312 sales. And in the same Californian state is the well-known Beverly Hills city, which also houses the most expensive properties in the US.

If you’re planning to own a luxury property in areas like Beverly Hills, here are some top tips you can do to afford a house in the city:

Work with local experts

Before you purchase a luxury home in Beverly Hills, you need to consult with various local professionals who can guide you through the process to ensure that you get the most out of your investment:

Home appraisers
Local home appraisers are vital because they provide the fair market value of your desired luxury estate. They can assure you that the price you've agreed to pay for a home is equitable according to the property's location, size, and layout. That’s why when looking for a home appraiser, find an expert with local knowledge about the Beverly Hills neighborhood and its surrounding areas. An appraiser who knows this information will perform and provide more accurate and updated appraisals.

Financial planner
Since buying a luxury home in Beverly Hills will cost you a lot of money, it’s best to consult with a financial planner. There are many different types of financial planners with varying degrees of qualifications. As part of their financial training most financial planners would have acquired the Securities Industry Essentials (SIE) certification. This is an important certification to look out for as a SIE guarantees that they know the structure of markets, regulatory agencies and their functions, and prohibited practices. A good financial planner can help you with investment strategy and wealth management as well as mitigating any risks associated with investing in a luxury estate.

Real estate agent
If this is your first time purchasing a luxury home, having a real estate agent with you is essential to assist you in looking for and buying a home. They can help you find a house that suits your preferences and budget and negotiate an offer on your behalf. When finding an agent, ensure they know the intricacies of the exclusive Beverly Hills real estate market. We make sure that you know all the things you need to know before buying an estate in Beverly Hills.

Apply for a Jumbo Loan

Once you know which luxury home you want to purchase, applying for a jumbo loan can help you finance it. Jumbo mortgages are loans intended for financing high-priced properties and assets, like luxury estates. In 2022, the maximum conforming loan limit for a single-family home in most US states is $647,200. But in areas such as California and Alaska, the limits are higher at $970,800. This means you can receive a bigger loan if you buy properties in these cities. However, to qualify for a jumbo loan, you must have an excellent credit score of 700 or higher and be in a higher income bracket.

Avoid Private Mortgage Insurance

Most lenders require buyers to pay for private mortgage insurance (PMI) when buying a luxury home. Although they are beneficial for lenders, they are less advantageous for you because it incurs more expenses. PMI typically costs around 0.5% to 1% of the entire loan amount annually. That means you could pay as much as $1,000 annually on a $100,000 loan with a 1% PMI fee. And since your new home costs are higher if you’re buying a home in Beverly Hills, you will have to pay higher fees. To avoid paying PMI, you'll need at least a 20% down payment to lower your loan-to-value (LTV) ratio. This is because the higher your down payment, the lower your LTV ratio, and lenders can approve your loan without a PMI.

Purchasing a home in Beverly Hills is a big financial decision, so it's important to work with the right people and be knowledgeable about the process before taking any steps.