What Indians Should Look for Before Investing in a Property in California??

While the real estate market in India is witnessing a slowdown, Indians are looking to invest in property abroad, especially California. 2020 is going to be the year for Indian investors planning for Foreign Real Estate Investment because the price of properties in California is going to see a hike by 2.5% this year, thereby giving lots of financial benefits to the buyers. But investing in real estate in California isn’t that easy as it might seem, and for many Indians buying a property there can often feel like a challenging process filled with loads of paperwork, unexpected complications, and unforeseen problems. 

 However, through adequately educating yourself before you jump into this crucial purchasing process, you can very easily eliminate many of the issues that come along with this experience. 

 So, if you are an Indian and have plans to invest in the California real estate market then here are a couple of tips to help you undertake the process smoothly. Here‘s a birds-eye view of the overall buying process and a few major factors that you must carefully consider. 

 First of all, determine your current financial status:

 Foreign real estate investments are great and usually go up in the long run, but keep in mind that you’ll also be required to pay a good amount of money in advance. In California, in particular, the average selling price for properties is $ 439,111. You’ll have to pay for property taxes and mortgage that further combines the median price to about $2,542 per month. At the very least, you’ll have to pay a minimum down payment of 3.5% of the entire closing price. All this can be a very hefty amount for many Indians, and therefore, it’s important that you make sure you are ready both emotionally and financially to take this expensive plunge. 

 Get a pre-approval for the mortgage:

 Most of California’s housing options; especially the ones located on the coastal sides are very competing, that too with a single property receiving several offers. Multiple bids, expensive down payments, cash offers, etc. all can give a tough time to buyers. So, having a pre-approval that states you are fully qualified to finance a property because your income, assets, and credit meet the lender’s standards can help you in great ways. Pre-approval of mortgage shows that the seller has started the loan approval process and is well on way to getting your finances with the right real estate investment. 

 Consult a great real estate agent in California:

 Consulting an experienced real estate agent is one of the most useful things you can do to make sure that your purchasing experience is as easy and stress-free as possible. A qualified real estate will be able to help you shortlist some productive properties, negotiate a better deal, and time the market according to your financial level and other preferences. 

 In California, you can expect to find the largest number of properties for sale between the months of April and June. Since the inventory is higher during these months, chances are that you’ll have several houses to choose from. But, if you want the best bargain then it would be worth it to wait until the winter months as during these months’ homeowners try to sell their properties because of immediate necessities and are happily willing to compromise on the cost. 

 However, just keep in mind that the time of the year in which you choose to invest in the California real estate market can have a huge effect on your entire closing price. So, be very vigilant and take every step very carefully. 

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Created on Jan 19th 2020 23:25. Viewed 298 times.

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