Brentwood is an upscale neighborhood on the western edge of Los Angeles. Residents enjoy taking walks through the neighborhood’s tree-lined streets and visiting local cafes and restaurants. Perhaps you’re interested in buying a second home in Brentwood but you have questions about what living in Brentwood is really like. Consider some of the most commonly asked questions that people have as they think about shopping for a second home in Brentwood.
Why do you want to live in Brentwood?
As you think about shopping for homes for sale in Brentwood, it’s important to clarify what attracts you to the area. Brentwood is one of the best neighborhoods in Los Angeles, but it’s not the right fit for everyone. You’ll find plenty of upscale shops, outdoor entertainment centers, and pristine office buildings lining the streets in Brentwood. It’s easy to understand why celebrities find living in Brentwood so appealing. Home prices are high, but so is the quality of life.
How will you fund your purchase?
Unless you plan to purchase your home in cash, it’s a good idea to connect with a lender to discuss what type and amount of loan you can qualify for. Your lender will want to know your current debt-to-income ratio and your credit score. They may ask to see recent pay stubs or tax returns to serve as proof of income. Once they have a better understanding of your financial position, they will provide you with a pre-approval letter that details what type and amount of loan you can qualify for. Since different lenders offer different interest rates, it’s a good idea to speak with multiple providers to see who can offer you the best deal.
Keep in mind that you can’t purchase a home entirely with outside funding. You will need to include some of your own cash to finalize the purchase. The exact amount that you’ll need for your down payment varies based on what type of loan you use. Most home purchases require the buyer to put down at least 3% of the home’s total value. Closing costs are a separate expense and usually amount to 2-6% of the total price of the home.
What features and amenities are you looking for in your home?
Once you have a better understanding of the price range where you’re shopping, you can begin looking at homes online. As you see different listings, you’ll get a better feel for what features and amenities are most important in your new home, and if there are any preferences you can live without. You can make your requests known to your real estate agent, and they will keep an eye out for properties that match the profile of what you’re looking for.
Will you rent the home out on a short-term basis?
Many people who own multiple homes will rent out their second home during the times when they stay elsewhere. You can easily create passive income by renting out your home on a short-term basis while maintaining the flexibility to come and stay in the home whenever you like. While some homeowners will prefer to reserve the home for personal use, others will appreciate the opportunity to increase their ROI.
How will owning a second home impact your taxes?
Owners of multiple properties should be prepared for the increased tax liability. Some of the tax ramifications will affect you whether or not you rent the home out at any point during the year. It’s important to research these ramifications carefully and discuss them with your real estate agent.
How will you maintain the property?
Taking care of a home is a hefty responsibility, especially for owners of multiple properties. You’ll have to develop a plan for how you’ll maintain your home in Brentwood, especially if your primary residence is located in a different city or state. Some homeowners will hire a property manager to help them with ongoing maintenance tasks and responsibilities. This is especially helpful if you’re renting your home out on an occasional basis. Your property manager can respond to maintenance requests from tenants while they are staying in the home.
Who will help you shop?
Buying a home is always easier when you’re able to team up with an experienced local real estate agent. They will educate you about the area where you’re shopping, and they will assist you in negotiations with a seller when you find a home that you like. They will help you prepare for closing so that you fully understand everything that the contract will require of you.
If you feel ready to begin shopping for homes for sale in Brentwood, Peter Mac would love to help you move forward. Peter has a keen awareness of the unique nuances of the local real estate market. His clients rave about his tireless work ethic and his effective marketing strategies. Peter has helped many people shop for their second home in Brentwood in the past, and he would love for you to be the next person he serves.
