You don’t have to be a U.S. citizen to buy a home in the U.S. You don’t even have to be a U.S. resident. Anybody who wants to can purchase property here.
Between April 2021 and March 2022, the value of residential property in the United States that was sold to foreign buyers totaled $59 billion, according to the National Association of Realtors (NAR)’s International Transactions in U.S. Residential Real Estate report. The vast majority of non-resident buyers are from Canada and Mexico, followed by China. They’re largely purchasing detached single-family homes in Florida and California.
While almost half (44 percent) of foreign buyers rely entirely on cash to make these purchases, it’s also possible for non-residents to obtain a mortgage in the United States to help finance the new homes. It’s not all smooth sailing, though. Non-citizen homebuyers will have to deal with slightly more complicated mortgage application requirements establishing their financial qualifications. They will also have more complex tax laws to comply with as homeowners.
What type of property can a non-resident buy?
Any non-U.S. citizen, including permanent residents, temporary residents, non-residents, refugees, asylum seekers and those who are recipients of Deferred Action for Childhood Arrivals (DACA) relief, can buy property in this country. There are no legal restrictions prohibiting the purchase of real estate by individuals who fall into any of these categories.
“Purchasing a residential property in the U.S. is open to any individual regardless of their citizenship,” says Jen Horner, a Realtor with RE/MAX Masters in Salt Lake City, Utah.
There are also no limits surrounding the type of property that can be purchased. A non-U.S. citizen can buy a single-family home, condo, townhouse, duplex or apartment building — or even land with no structure on it at all.
“There are no restrictions in the United States on purchasing a property as a foreign national. This applies to resident foreign nationals who might want to buy property for primary residence based on where they currently live in the United States, or non-resident foreign investors looking to buy property for other reasons — such as investment use or a vacation home,” says Chase Michels, of the Michels Group at Compass in Hinsdale, Illinois.
According to the NAR, between the spring of 2021 and the spring of 2022, 74 percent of foreign buyers purchased a detached single-family home or townhome. In addition, 44 percent of foreign buyers purchased a property for use as a vacation home, rental or both.
What documents does a non-resident need to buy a home?
While they can buy freely, non-U.S.-citizen buyers are typically required to provide additional documentation to complete a home purchase in the United States, compared with U.S. citizens.
The exact requirements vary however, depending on whether the home is being purchased with cash or a mortgage, and based on the specific resident status of the buyer. Some of the basic requirements for non-U.S. citizen buyers, says Michels, often include:
A foreign passport, U.S. visa or driver’s license
Social Security number or Individual Taxpayer Identification Number (ITIN)
Financial statements from applicant’s foreign bank, if applicable
Evidence of financial assets/income (bank statements, etc.)
Tax returns (preferably U.S., if applicable)
“Cash purchases will require proof of identity and reporting the purchase to the federal government,” says Horner. “If a mortgage lender will be used, they have the ability to request as much documentation as they feel necessary to advance [the] mortgage application.”
Which begs the question: Are non-U.S. citizens able to obtain mortgages to finance home purchases in the United States? The short answer is yes. But it’s complicated.
How can a non-resident finance a home?
In general, mortgage lenders prefer to work with applicants currently living in the United States, and who are classified as permanent or non-permanent residents. (Individuals who have a green card and a Social Security number are permanent residents, while those who have a Social Security number, but no green card, are non-permanent residents.) Their rationale is simple: Applicants residing in this country are viewed as less of a risk, particularly in cases of default on the loan.
Their residency status impacts the specific type of mortgage that can be used. There are two main categories of lending for non-citizen purchases, says Michael Cantwell, loan officer for Guild Mortgage. “One major classification is that of a foreign national and the other would be those individuals currently living in the United States who have not received U.S. citizenship yet,” says Cantwell.
Applicants who fall into either of these categories can usually qualify for a conventional mortgage backed by Fannie Mae and Freddie Mac, as well as Federal Housing Administration (FHA) government-backed loans. However, non-permanent residents will need to be using the home as a primary residence in order to obtain mortgage approval.
“Many banks and mortgage companies offer conventional and FHA home loans to non-U.S. citizens provided they can verify their residency status, work history, and financial track record,” says Michels.
And for non-residents? Applicants living abroad can buy properties in this country using what’s known as a foreign national loan or foreign national mortgage loan, says Cantwell. These loans are typically offered by U.S.-based banks and lenders and are designed for borrowers living outside the country who are seeking to either purchase or refinance. Foreign national mortgages are not backed by Fannie Mae or Freddie Mac.
Additional rules and restrictions for non-residents
Tax rules also apply to properties owned by non-U.S. citizens. For instance, if a non-U.S. citizen rents out the property purchased to generate income, then that income must be reported and taxes must be paid both in the United States and in the property owner’s home country, says Bruce Ailion, a real estate attorney and Realtor with Re/Max Town & Country in Atlanta. In addition, non-U.S. citizens are liable for paying local property taxes.
And when selling a property in the United States as a non-U.S. citizen, capital gains tax will typically apply as well.
“When selling a property in the U.S. there are special withholding provisions that must be complied with,” says Ailion. “A tax advisor with specific knowledge in international tax should be consulted.”
On the plus side, all Fair Housing Act, Title VII, and other anti-discrimination protections apply to real estate transactions involving non-U.S. citizens. These laws are in force no matter who the buyer is, says Michels.
Final word on non-resident home purchases
It is entirely possible to purchase a home as a non-U.S. citizen — whether you’re a foreign national or a permanent or a temporary resident. There are no limitations on the type of property that can be purchased or how the property is used. Furthermore, U.S. laws that protect the rights of all homebuyers cover non-U.S. citizens and non-residents as well.
What’s really more significant, in terms of complications, is not a person’s citizenship, but their place of residency. If you don’t live in the U.S., buying a home does get more difficult — especially if financing is going to be needed for the purchase.
Non-residents must be prepared to deal with additional complexities, including more extensive documentation requirements establishing their identity, income and assets. They are limited to certain types of loans or mortgages, ones not backed by the primary mortgage market-makers. But the path to U.S. homeownership is certainly not blocked — it just may have a few speed bumps on it.
Perhaps unsurprisingly, it didn’t take long for a castle in Georgia to find a buyer. The fanciful space is currently pending sale.
In fact, the first person who saw the Oakhurst Castle in Decatur, GA, put in an offer on the 116-year-old property. The home—a real standout in its suburban Atlanta neighborhood—is listed for $1,335,000
“It’s in an area that’s full of 1920s bungalows interspersed with new construction, and then you’ve got this castle-looking building on a corner lot that just doesn’t look like anything else,” says listing agent Kathleen Sickeler, with Coldwell Banker Realty. “It’s in an amazing school district and at that price point, we knew we would get offers right away.”
The current owners bought the place in 2012 for $575,000 and, as Sickeler says, did all of the necessary but “unsexy stuff” to the property—updating the electrical, replacing the plumbing, adding insulation, and other essential upkeep.
And all of their work seems to have helped attract a buyer.
“It was very turnkey—nothing needed to be done,” Sickeler says. “The potential buyer really didn’t have to do anything except just walk into this updated, modernized home that is filled with all the integrity and character of a bygone era.”
The castle was built in 1907 and, according to lore, the original owner had an affinity for English castles; so he built one for his family on a piece of property and added a courtyard and many other special touches, Sickeler notes
“His brother is said to have owned a stained-glass factory in California, hence why there’s a lot of stained glass in the property and a lot of original glass windows,” she says, adding that the large stained-glass window in the stairway has mysterious origins. “It was hanging in the home when the sellers purchased it. They made it a permanent fixture and put it in a window. Nobody knows if it came from the brother’s factory. You hear these stories that can’t be validated but seem to have been passed along generation to generation.”
There are four bedrooms and three bathrooms in the 3,318-square-foot house. The turret connects to one of the bedrooms, creating a a cozy spot.
“It’s just a beautiful, round reading nook, and everywhere you look, you see a beautiful view,” Sickeler says.
The ground floor of the turret is an open patio-seating area.
Another of the home’s unique features is the overhead painting in the kitchen. The design features a nod to the iconic “The Joy of Cooking” cookbook.
“In the skylight, you’ve got this huge hand-painted mural,” Sickeler says. “It was painted in 1992 for the previous owners, and you’ll never find anything like that in another house.”
The home also offers a detached garage with a bonus area that Sickeler calls a great hangout space.
The home’s interiors are surprisingly modern but still seem to fit with the character of a castle.
In fact, the listing agent and sellers had discussions about how to emphasize the light and bright interiors to potential buyers, who might have imagined an old castle would be dark and dusty inside.
Sickeler emphasizes that the house definitely speaks for itself.
“Once you walk in, you’ve got a beautiful amount of light coming through that stained-glass window,” she observes. “It’s such a grand foyer. It just opens up and with high ceilings. It’s just beautiful. You walk in you just feel, ahhh.”
The nation’s fastest-growing cities are nearly all in the South.
For the second year in a row, Georgetown, TX, a suburb about 30 miles north of Austin, experienced the most growth. Its population ballooned by about 14.4%, according to a recent U.S. Census Bureau report. The bureau looked at population growth between July 1, 2021, and July 1, 2022, in cities with at least 50,000 residents to come up with its list.
The median home list price in Georgetown was $525,000 in April, according to Realtor.com® data. That’s about $175,000 less than the $700,000 price tag in Austin. Plus, there are homes available in Georgetown. More than half of the homes in the suburb listed on Realtor.com are new construction.
The city is known as the “Red Poppy” capital of Texas for the flowers planted all over the city and hosts a red poppy festival every April to celebrate its nickname. It is also home to Southwestern University.
“Austin got so much more expensive that people flocked to the suburbs because they were somewhat less expensive,” says Gary Maler, executive director of the Texas Real Estate Research Center at Texas A&M University in College Station, TX. “There is just a lot of construction. … We haven’t been able to build it fast enough.”
Eight of the 10 fastest-growing cities were in the South: four in Texas (three suburbs of Austin and one outside of Dallas), three cities in Florida, and one in Arizona about 45 minutes east of Phoenix. All of the cities, except Santa Cruz, CA, boast significant numbers of newly constructed homes. That additional housing is likely to have helped many of these places attract new residents.
“Jobs in Texas outpace many other states. There’s a pro-business attitude in Texas. There’s a variety of cultures and sceneries in Texas. We have relatively lower costs than other states, although we’re starting to lose that,” says Maler.
However, the fastest-growing cities weren’t the largest. New York City with its 8.3 million residents, Los Angeles with nearly 4 million residents, and Chicago with about 2.7 million residents were the largest cities in the nation,
The 10 fastest-growing cities
Georgetown, TX Median home list price: $525,000
Santa Cruz, CA Median home list price: $1,924,000
Kyle, TX Median home list price: $400,000
Leander, TX Median home list price: $550,000
Little Elm, TX Median home list price: $505,000
Westfield, IN Median home list price: $570,000
Queen Creek, AZ Median home list price: $682,500
North Port, FL Median home list price: $399,000
Cape Coral, FL Median home list price: $515,000
Port St. Lucie, FL Median home list price: $450,000
The home appraisal is an integral part of the home selling process. It helps to determine the “market value” of a property so buyers neither overpay for a house nor get it for a “steal.” The appraisal breaks down into three parts, though this can vary by state:
● Inspection ● Comparables (how other homes in the neighborhood are valued) ● Final report
As you prepare for a profssional home appraisal, here’s what you can do to ensure you get the best possible report and value for your home.
Keep Up Appearances
Ensure the following when an appraiser comes to assign a market value to your home: ● A healthy and hospitable appearance ● Proper drainage away from the foundation and/or basement ● Egress windows in all bedrooms for fire safety ● For homes built before 1978, no lead-based paint concerns ● Handrails on all stairs and steps ● A properly functioning heating system that provides ample comfort ● A roof in good condition
Though home appraisers won’t put a “black mark” in their books for the messiness of your home, it does help to have it organized. They’ll be able to see some of the high selling points if they’re not covered under clutter.
Provide Necessary Paperwork
Appraisers absolutely must have all of the paperwork available about your property before they arrive. If they don’t get this information from your lender or broker beforehand, then you should have it in a folder, ready to hand over. This information includes: ● Major improvements ● Age and condition of the roof, HVAC system and major appliances ● Permits for any DIY projects
The more information they have on-hand about your house, the better they can value it.
List Only Essentials
Never list extra square footage in your overview to the appraiser. While you may think your basement or attic counts as square footage, this isn’t always the case. If you’re unsure, it’s best to hire a home inspector or REALTOR® to advise you on acceptable square footage. You should also take care to provide accurate square footage for individual rooms. While you might be tempted to add a few extra square feet here and there, your appraiser has no problem looking up the actual numbers — and it could hurt you in the end.
Conclusion
Home appraisals aren’t just for sellers; they’re for homebuyers and refinancers too. In the case of a buyer, a buyer’s lender will generally have a different appraiser look through the home and perform an independent assessment. If the buyer’s assessment doesn’t match up against the seller’s, discrepancies may be addressed as needed. It also helps to see where potential problems may lie before listing your home, in case you need to make repairs.
In the scenic seaside neighborhood of Corona del Mar in Newport Beach, a newly listed coastal home will make you rethink your house goals.
Dubbed ‘The Island House’, the dreamy property sits on three homesites that have been combined to create what is now one of the most expensive homes in the already-exclusive community.
Properties in the Orange County riviera are notoriously expensive, with the median listing price in the area averaging $4.8 million, according to Realtor.com.
Even so, the 7-bedroom Island House gives the rest of Corona del Mar’s pricy listings a run for their money – pun intended.
Priced at $29.5 million, the property is one of the most expensive homes for sale in the area. A Brighton Road home that’s set about 2 miles away currently claims the #1 spot with a $35 million price tag.
On a county level, the property ranks in the top 12 most expensive homes in Orange County, with a newly built Newport Coast mansion (known as Palais du Cristal) leading the rankings with its whopping $69.8 million ask.
But there are a few aspects that are completely unique to the Island House — from its past presidential ties to the three lots it sits on.
The previous owners bought the property back in 1999 with plans to rebuild it into their dream home. To do that, they also purchased two adjacent lots and combined them into one homesite that has no direct neighbors.
According to our sources, back in the day, Ronald Reagan and his family used to frequent the original residence that stood on the property.
But there’s not much left of the presidential favorite. The previous owners embarked on an extensive renovation (carried on by the current seller), which transformed it into a magnificent residence that combines traditional and contemporary design.
With sweeping ocean views from nearly every room — directly overlooking Newport Harbor, the Balboa Peninsula, Catalina Island, Palos Verdes and popular surf spot, The Wedge — the exclusive home offers seven bedrooms and ten bathrooms, spread across 7,168 square feet of living space.
Designed for entertaining, working and relaxing at home, The Island House features a long list of private amenities.
An elegant office with glass and steel-framed walls opens to a patio and three-hole putting green. The lower entertainer’s level boasts a 650-bottle wine room with a tasting area and a 15-seat home theater with a 120” screen and surround sound.
On its own level at the third floor is an additional game room with a full bath, 32-bottle wine fridge, Fleetwood doors, patio and sunbathing area.
While it’s hard to pin down all the noteworthy features of the $29.5 million home, some of its standout features include Fleetwood windows and doors, an open-plan great room, expansive pool and spa, BBQ kitchen/bar, and outdoor entertaining area that can fit roughly 100 guests.
Outside, the three- to six-foot deep pool, heated spa and multi-colored ambient lighting, and pool terrace with ample space provide the perfect spot for shaded or sun-drenched lounging.
Dancing water features add a picture-worthy setting with the ocean as a backdrop.
The Island House is listed with Mauricio Umansky, Phillip Caruso, Michael Caruso, Roxy Gonzalez of The Agency.
More stories you might like
A $25M Corona Del Mar Home is Being Marketed With the Help of NBC’s Dance Stars Oceanfront Home on Dana Point’s ‘The Strand’ Sells for $21.25M A Contemporary $56 Million Malibu Mansion Towers Above the Ocean
Inside: This guide will teach you about the different factors you need to consider when purchasing a home with a 70k salary.
There are a lot of factors to consider when you’re trying to figure out how much house you can afford. Your income, your debts, your down payment, and the interest rate on your mortgage all play a role in determining how much house you can afford.
Your situation will be different than the person next-door or your co-coworker.
Making 70000 a year is a great salary. You are making the median salary in the United States.
It’s enough to comfortably afford most homes and gives you plenty of room to save money each month.
But how much house can you actually afford?
It depends on several factors, including your down payment, interest rate, income, and credit score.
In this ultimate guide, we’ll walk you through everything you need to know about how much house you can afford making 70000 a year.
how much house can i afford on 70k
In general, you can expect to spend 28-36% of your income on housing.
Generally speaking, if you make $70,000 a year, you can afford a house between $226,000 and $380,000.
How much mortgage on 70k salary?
In general, you should expect to spend no more than 28% of your monthly income on a mortgage payment.
Thus, you can spend approximately$1633-2100 a month on a mortgage.
Just remember this is relative to the interest rate, term length of the loan, down payment, and other factors.
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28/36 Rule
But there’s one factor that trumps all the others: The 28/36 rule.
Also known as the debt-to-income (DTI) ratio.
The 28/36 rule is a guideline that says that your housing costs (mortgage payments, property taxes, homeowners insurance, and HOA fees) should not exceed 28% of your gross monthly income.
And your total debt (housing costs plus any other debts you have, like car payments or credit card bills) should not exceed 36% of your gross monthly income.
You must follow the 28/36 rule.
How to calculate how much mortgage you can afford?
If you’re like most people, you probably don’t know how to calculate how much mortgage you can afford.
This is actually a really important question that you need to ask yourself before beginning the home-buying process.
The answer will help determine the price range of homes you should be looking at. Plus know how much money you’ll need to save for a down payment.
Step #1: Check Interest Rates
Research current mortgage rates to get an accurate estimate. You can also check your credit score and search for average mortgage rates based on your credit score.
Right now, with sky-high inflation, you are unable to afford a bigger house when interest rates are hovering around 6% compared to ultra-low interest rates of 2.5%.
With a 70k salary, this can be the difference between $50-100k on the total mortgage amount you can afford.
Step #2: Use a Mortgage Calculator
Use a mortgage calculator to get an estimate of the home price you can afford based on your income, debt profile, and down payment.
Generally, lenders cap the maximum amount of monthly gross income you can use toward the loan’s principal and interest payment to not more than 28% of your gross monthly income (called the “Front-End” or “Housing Expense” ratio). Then, limit your total allowable debt-to-income ratio (called the “Back-End” ratio) to not more than 36%.
You can use a mortgage calculator to a ballpark range of what house you can afford.
Step #3: Taxes, Insurance, and PMI
When planning for a home purchase, it’s important to factor in all of your monthly expenses, including taxes, insurance, and PMI.
This will ensure that you get an accurate estimate of your home-buying budget based on your household annual income.
Don’t forget to include these payments to get a realistic understanding of your monthly budget.
Step #4: Remember your Living Expenses
When considering how much house you can afford based on your $70,000 salary, you must consider your lifestyle and current expenses.
It is important to factor in other monthly expenses such as cell phone and internet bills, utilities, insurance costs, and other bills.
More than likely, you will be approved for a higher mortgage amount than you would feel comfortable with. This is 100% what lenders will do.
They want to provide you with the most you can afford – not what you should afford.
Step #5: Get prequalified
Prequalifying for a mortgage is an important first step to take when estimating how much house you can afford.
It gives you a more precise figure to work with and helps you make a more informed decision based on your personal situation.
Remember that your final amount will vary depending on a number of factors, especially your interest rate, which will be based on your credit score.
Taking the time to research current mortgage rates helps you secure a better mortgage rate, giving you more buying power.
Home Buying by Down Payment
How much house can you afford?
It’s a common question among home buyers — especially first-time home buyers. Use this table to figure out how much house you can reasonably afford given your salary and other monthly obligations.
The assumption is 30 year fixed mortgage, good credit (690-719), no monthly debt, and a 4% interest rate.
Annual Income
Downpayment
Monthly Payment
How Much House Can I Afford?
$70,000
$9,552 (3%)
$1,750
$318,412
$70,000
$16,215 (5%)
$1,750
$324,316
$70,000
$34,058 (10%)
$1,750
$340,581
$70,000
$53,573 (15%)
$1,750
$357,152
$70,000
$75,094 (20%)
$1,750
$375,468
$70,000
$98,933 (25%)
$1,750
$395,731
**Your own interest rate, monthly payment, and how much house you can afford will vary on your personal circumstances.
Mortgage on 70k Salary Based on Monthly Payment and Interest Rate
How much house can you afford on a $70,000 salary?
This largely depends on the current interest rate of the mortgage loan you’re considering. When interest rates are high, people aren’t actively buying as when interest rates are low.
By understanding these factors, you can better gauge how much house you can afford on a $70,000 salary.
The assumption is 30 year fixed mortgage, good credit (690-719), no monthly debt, and a 20% downpayment.
Annual Income
Monthly Payment
Interest Rate
How Much House Can I Afford?
$70,000
$1,750
3.25%
$406,796
$70,000
$1,750
3.5%
$396,231
$70,000
$1,750
3.75%
$386,101
$70,000
$1,750
4%
$375,994
$70,000
$1,750
4.5%
$357,554
$70,000
$1,750
5%
$339,954
**Your own interest rate, monthly payment, and how much house you can afford will vary on your personal circumstances.
Home Affordability Calculator by Debt-to-Income Ratio
Around here at Money Bliss, we always stress that debt will hold you back.
In the case of buying a house, debt increases your DTI ratio.
Here is a glimpse at what monthly debt can cause your debt-to-income (DTI) ratio to increase. Thus, making the house you want to buy to be more difficult.
Annual Income
Monthly Payment
Monthly Debt
How Much House Can I Afford?
$70,000
$2,100
$0
$440,085
$70,000
$1,900
$200
$404,584
$70,000
$1,800
$300
$382,334
$70,000
$1,600
$500
$337,883
$70,000
$1,350
$750
$282,208
$70,000
$1,100
$1000
$226,582
**Your own interest rate, monthly payment, and how much house you can afford will vary on your personal circumstances.
Increase your Home Buying Budget
Here are a few ways you can increase your home buying budget when buying a house on a $70k annual income.
By following these steps, you can increase your home buying budget and find a more suitable house for your income.
1. Pick a Cheaper Home
Home prices vary significantly in different parts of the country.
Moving out of a major metropolitan area with notoriously high housing costs can help you find more affordable homes.
There are plenty of ways to find a home that is cheaper than you would normally expect.
Look for homes that are for sale in less desirable neighborhoods.
Find homes that are for sale by owner or have not been listed yet.
Check for homes that are for sale outside of your usual price range and haven’t sold as they may drop their price.
Move to a lower cost of living area.
2. Increase Your Down Payment Savings
A larger down payment can reduce the amount you have to finance, which lowers your monthly payment.
Plus help you get a lower interest rate and avoid paying PMI.
Putting down at least 10-20 percent of the home sale price can help boost your home buying power. You can also take advantage of down payment assistance programs in your area.
3. Pay Down Your Existing Debt
Paying down your debts such as credit card debts or auto loans can help raise your maximum home loan.
Paying down your debts can help you qualify for a higher loan amount.
This is because when you have lower amounts of debt, your credit score is higher and your debt-to-income ratio is less. This means you are less likely to be rejected for a home loan.
4. Improve Your Credit Score
A higher credit score can lead to lower rates and more affordable payments.
You can improve your credit score by:
Paying your bills on time
Paying down your credit card balances
Avoiding opening new credit before applying for a mortgage
Disputing any errors on your credit report
This is very true! We had an unfortunate debt that wasn’t ours added to our credit report right before closing. While the debt was an error, it still cost us a higher interest rate and forced us to refinance once the credit report was fixed.
5. Increase Your Income
Asking for a raise, seeking a higher-paid position, or starting a side gig can help you increase the amount of home you can afford.
While you need two years of income from a side gig or your own online business to count as income, the extra cash earned helps you to increase the size of your downpayment. Plus it lowers your debt-to-income ratio with the savings you are setting aside.
What factors should you consider when deciding how much you can afford for a mortgage?
How much house can you afford on your current salary and with your current monthly debts?
This is a question that we are often asked, and it’s one that we love to answer.
We’ll walk you through all the different factors that go into this decision so that you can make an informed choice.
1. Loan amount
The loan amount is a key factor that affects the total cost of a mortgage.
If you have no outstanding debt, a 20% down payment, a high credit score, and a 3.5% interest rate from an FHA loan, you could be able to afford up to $508,000.
However, if you have debt, a smaller down payment, or a lower credit score, the loan amount you can qualify for will be lower.
Similarly, if you choose a 15-year fixed-rate loan, your monthly payments will be higher, but you will end up paying less in interest over the life of the loan than with a 30-year fixed-rate loan.
Ultimately, your loan amount will affect the total cost of your mortgage, so it’s important to consider all the factors when making your decision.
2. Mortgage Interest rate
Mortgage interest rates can have a significant impact on the cost of a mortgage. The higher the interest rate, the more expensive the loan will be.
For example, a difference between a 3% and 4% interest rate on a $300,000 mortgage is more than $150 on the monthly payment.
Remember, in the first few years of a mortgage, the majority of the payment goes toward interest rather than trying to reduce the principal amount.
3. Type of Mortgage
The primary difference between a fixed and variable mortgage is the interest rate and the amount of your payment
Fixed-rate mortgages offer the stability of having the same interest rate for the life of the loan.
Adjustable-rate mortgages (ARMs) come with lower interest rates to start, but those rates can change over the life of the loan. ARMs are often a riskier choice, as if the economy falters, the interest rate can go up.
Fixed-rate loans are typically the most popular choice, as the monthly payment amount is more predictable and easier to budget for. The terms of a fixed-rate loan can range from 10 to 30 years, depending on the lender.
Adjustable-rate mortgages (ARMs) have interest rates that can increase or decrease annually based on an index plus a margin. ARMs are typically more attractive to borrowers who plan on staying in the home for a shorter period of time, as the lower initial interest rate can make the payments more manageable.
The Money Bliss recommendation is to choose a 15-year fixed-rate mortgage.
4. Property value
Property value can have a direct effect on how much you can afford for a mortgage.
As the value of the property increases, so does the amount of money you will need to borrow to purchase it. This, in turn, affects the monthly payments and the amount of interest you will pay over the life of the loan.
This is especially important as many people have been priced out of the market with the rising home prices.
Additionally, higher property values can mean higher taxes, which will add to the amount you need to budget for your mortgage payments.
5. Homeowner insurance
Homeowner’s insurance is a requirement when securing a loan and it can vary depending on the value and location of the home.
Additionally, certain areas that are prone to natural disasters or are located in densely populated areas may have higher premiums than other locations and may require additional insurance like flood insurance.
As a result, lenders typically require that you purchase homeowners insurance in order to secure a loan, and may have specific requirements for the type or amount of coverage that you need to purchase.
Before committing to a mortgage, it is important to consider the cost of homeowner’s insurance and make sure it fits into your budget.
This is something you do not want to skimp on as the cost to replace a home is very expensive.
6. Property taxes
Property taxes are calculated based on the value of a home and the tax rate of the city or county where the property resides.
The higher the property taxes, the more you will have to pay in your monthly mortgage payment.
In states with high property taxes, the property tax bill can be a large sum of the mortgage payment.
It is important to consider these costs when comparing different homes and locations to ensure you can afford the home without stretching your budget too thin.
7. Home repairs and maintenance
It’s important to also consider other factors such as the age of the house, since some properties may require renovation and repairs that can cost more than the house price itself.
Beyond the cost of purchasing a home, homeowners will likely have other expenses related to owning and maintaining the property.
Also, many homeowners prefer to do significant upgrades to the home before moving in, which comes at an additional expense.
These can include ordinary expenses such as painting, taking care of a lawn, fixing appliances, and cleaning living spaces, which can add up.
Additionally, it’s advisable to buy a home that falls in the middle of your price range to ensure you have some extra money for unexpected costs, such as repairs and maintenance.
8. HOA or Homeowners Association Maintenance
This is often an overlooked factor by many new homebuyers, but extremely important as some HOAs add $500-800 per month to the total housing budget.
The purpose of a homeowners association (HOA) is to establish a set of rules and regulations for residents to follow as well as maintain the community or building.
These fees are typically used to pay for maintenance, amenities, landscaping, and concierge services.
HOA fees are used to finance community upkeep, including landscaping and joint space development, and can range from $100 to over $1,000 per month, depending on the amenities in the association.
9. Utility bills
When switching from renting to buying a home, you will have to factor in the costs of your monthly utility bills such as electricity, natural gas, water, garbage and recycling, cable TV, internet, and cell phone when calculating how much mortgage you can afford.
In addition, the larger the home, the higher the costs to heat and cool your new home.
Make sure to ask your realtor for previous utility bills on the property you are interested in.
10. Private Mortgage Insurance
The purpose of private mortgage insurance (PMI) is to protect the lender in the event of foreclosure. It is typically required when a borrower is unable to make a 20% down payment on a home purchase.
PMI allows borrowers to purchase a home with less upfront capital, but also comes with additional monthly costs that are added to the mortgage payment. These fees range from 0.5% to 2.5% of the loan’s value annually and are based on the amount of money put down.
PMI can also be canceled or refinanced once the borrower has achieved 20% equity in the home or when the outstanding loan amount reaches 80% of the home’s purchase price.
11. Moving costs
Moving is expensive, but also a pain to do. So, consider the moving costs associated with relocating from one location to another.
Typically fees for packing, transportation, and possibly storage, and can vary depending on the size of the move and the distance the move needs to cover.
Also, consider if by buying a home, you will stop having moving costs associated with moving from rental to rental.
FAQ
When determining how much house you can afford, it’s important to consider several factors.
These include your income, existing debts, interest rates, credit history, credit score, monthly debt, monthly expenses, utilities, groceries, down payment, loan options (such as FHA or VA loans), and location (which affects the interest rate and property tax). Also, think about the costs of maintaining or renovating a home.
Additionally, you should also evaluate your own budget and assess whether now is the right time to purchase a home. Taking all of these factors into account can help you set the maximum limit on what you can realistically afford.
A mortgage calculator can help you determine your home affordability by providing an estimate of the home price you can afford based on your income, debt profile, and down payment.
It works by inputting your annual income and estimated mortgage rate, which then calculates the maximum amount of money you’re able to spend on a house and the expected monthly payment.
Additionally, different methods are available to factor in your debt-to-income ratio or your proposed housing budget, allowing you to get a more accurate estimate of your home buying budget.
The debt-to-income ratio or DTI is used by lenders to assess a borrower’s ability to make mortgage payments.
This ratio is calculated by taking the total of all of a borrower’s monthly recurring debts (including mortgage payments) and dividing it by the borrower’s monthly pre-tax household income.
A high DTI ratio indicates that the borrower’s debt is high relative to income, and could reduce the amount of loan they are qualified to receive.
Generally, lenders prefer a DTI of 36% or less, which allows borrowers to qualify for better interest rates on their mortgages.
To calculate their DTI, borrowers should include debt such as credit card payments, car loans, student and other loans, along with housing expenses. It is important to note that the DTI does not include other monthly expenses such as groceries, gas, or current rent payments.
Closing costs can have an enormous impact on how much home you’re able to afford.
From application fees and down payments to attorney costs and credit report fees, these costs can add up quickly and affect your overall budget. Unfortunately, most of these closing costs are non-negotiable, but you can ask the seller to pay them.
When buying a house, it is important to research the different mortgage options available to you.
You can typically choose between a conventional loan that is guaranteed by a private lender or banking institution, or a government-backed loan. Depending on your monthly payment and down payment availability, you may be able to select between a 15-year or a 30-year loan.
A conventional loan typically offers better interest rates and payment flexibility.
While a government-backed loan may be more lenient with its credit and down payment requirements.
For veterans or first-time home buyers, there may be special mortgage options available to them.
Ultimately, it is important to talk to a lender to see which loan type is best for your personal circumstances.
When it comes to saving for a down payment, it’s important to understand how much you’ll need and how much it will affect your budget.
Generally, you’ll need 20% of the cost of the home for a conventional mortgage and 25% for an investment property. When you put down more money, it gives you more buying power and may help you negotiate a lower interest rate.
For example, if you’re buying a $300,000 house, you’ll need a down payment of $60,000 for a conventional mortgage. On the other hand, if you put down 10%, you can still afford a $395,557 house. But, you will have to pay for private mortgage insurance.
In addition, there are other ways to help you cover these upfront costs. You can look into down payment assistance programs.
Ultimately, the size of your down payment will depend on your budget and financial goals. You should never deplete your savings account just to make a larger down payment. It’s important to factor in emergency funds and other expenses when deciding on the best option.
Eligibility requirements for loan lenders can vary, but in general, lenders are looking for borrowers with a good credit score, a reliable income, and a history of employment or income stability.
For most loan types, borrowers will need to show a history of two consecutive years of employment in order to qualify. However, lenders may be more flexible if the borrower is just beginning their career or if they are self-employed and do not have W2 forms and official pay stubs.
Income verification also needs to be done “on paper”, meaning that cash tips that do not appear on pay stubs or W2s can not be used as income. The lender will look at the household’s average pre-tax income over a two-year period before determining the amount that can be borrowed.
In order to make sure that the borrower is financially secure, lenders will also pull the borrower’s credit report and base their pre-approval on the credit score and debt-to-income ratio. Employment verification may also be done.
For certain government-backed loan types, such as FHA, VA, and USDA loans, there may be additional or different requirements for eligibility. For instance, for FHA loans, the borrower must intend to use the home as a primary residence and live in it within two months after closing. VA loans are more lenient, and may not require a down payment.
The qualifications for VA loans vary based on the period and amount of time the borrower has served. There are many ways to qualify, whether the borrower is a veteran, active duty service member, reservist, or member of the National Guard. For more information on eligibility requirements for VA loans, borrowers can visit the U.S. Department of Veteran Affairs.
A good credit score will mean you have access to more lending options, better interest rates, and more purchasing power.
On the other hand, a poor credit score could mean you are approved for a loan, but at a higher interest rate and with a smaller house.
This means your budget will be more limited and you may not be able to buy as much home as you had hoped for. Additionally, lenders will also look at other factors, such as your debt-to-income ratio, employment history, and loan term, in order to determine your overall affordability.
What House Can I Afford on 70k a year?
As a borrower, you need to consider the interest rate, down payment, credit score, debt-to-income ratio, employment history, and loan term when determining how much house you can afford.
A higher credit score can often mean a lower interest rate, and a larger down payment can bring down the monthly payments.
All of these factors can have an effect on the amount of money you can borrow and the home you can afford.
Ultimately, understanding the impact of different factors can help borrowers make the best decisions when it comes to getting a mortgage.
Now that you know how much house you can afford, it’s time to start saving for a down payment.
The sooner you start saving, the sooner you’ll be able to move into your dream home. But you may have to wait if you are considering a mansion.
By taking into consideration this guide into account, you can make a more informed decision about the cost of a mortgage for your new home.
Know someone else that needs this, too? Then, please share!!
Steak and corn are usually what come to mind when someone says Nebraska.
How about wine? Yes, really.
Soaring Wings Vineyard is for sale outside Omaha, NE, for $3.1 million.
“The current owners moved to Nebraska and wanted to find land to start a winery, because they have always been fascinated with wine,” explains listing agent Michael Maley, with BHHS Ambassador Real Estate. “They found their 30 acres, built their house there, and started their winemaking operation.”
What started in a shed has expanded to a building that houses all of the winemaking equipment and oak barrels, situated across about 3o acres.
The vino is bought by area businesses and enjoyed by locals.
“The wine that is produced in the building is sold to grocery stores and is white-labeled in restaurants here in Omaha,” Maley says. “What was just a pet project and a hobby has turned into a really feasible business.”
That small business that started back in 2001 now includes a brewery, tasting room, an amphitheater, and an indoor-outdoor event space with room for 1,000 people to dine.
Everything conveys with the sale.
“Now they have a huge facility for events, weddings, and musical festivals,” Maley says. “They would love for somebody to come in, and see it, and want to take it to the next level.”
According to the winery’s website, the operation produces several kinds of wines with different types of grapes, including Syrah, and has won hundreds of medals at wine competitions.
The owners have lived on the property in a 3,909-square-foot, four-bedroom house. But there are no interior photos. Instead, the vineyard takes center stage for this listing.
Maley notes that the home has an updated kitchen, open spaces, and a phenomenal view.
“Even without the vineyard and the event center, the house on 30 acres is probably worth almost $2 million, so there’s good value in this property as well,” he adds.
Maley says he was surprised when he first saw the operation.
“I just kind of took it all in and was in awe with their whole production facility,” he recalls. “I didn’t know that existed here in Omaha.”
The winemaker is local, and Maley says she would like to stay and work for the new owners.
“The wine operation itself is kind of hands off for the new owner, if they want it to be,” he says. “They’d just have to focus on the events part of it.”
He adds that the property would be ideal for “someone that has entrepreneurial spirit, already owns an event venue, has a fascination with wine, or has grown businesses before. There’s huge growth potential with this business.”
The thought of investing–and doing it successfully–can be a daunting task. This is especially true if you’re a beginner investor. However, if you’re willing to take advantage of the information on the best investment sites, you’ll have a wealth of investment knowledge right at your fingertips.
The top investment sites for stock news, research, and analysis can be great tools for keeping you up to date on the latest financial and economic news. As you learn more from each site, you’ll have more knowledge with which to plan your own personal investment strategy.
Of course, they’re just opinions, but they are educated opinions. Whether you’re a beginner investor or a seasoned investor, these sites have information you should check out.
Our Top Picks For Investment Sites
Motley Fool – Great For Beginner Investor & Get $100 off
Morningstar – Great For DIY Investors & 14 Day Free Trial
Market Watch – Great For Up to Date Investment News
In This Article
What Are the Top Investment Sites?
Even the best investment sites aren’t guaranteed to pick stock winners and losers. However, the people who are hired to write on the sites typically have a wealth of experience and education behind them.
There are a few investment sites that people “in the know” use when they want information about companies and other economic news. Here are some of our favorite investment sites for garnering important economic information.
Here’s a list of some of our favorite investment sites for learning what you need to know about investing and company financial information.
1 .Motley Fool Stock Advisor
Motley Fool was founded in 1993 by David and Tom Gardner, brothers. Their goal? “Make the world smarter, happier, and richer.” Sounds good to me.
The Motley Fool brothers are big believers in buying stock in great companies and holding onto it. Their site has a great section on investing for beginners.
It also shares a wealth of information on the stock market, on investing for retirement and more. The site even shares personal finance information such as where to find the best checking accounts and credit cards.
Personally, I find the site very well put together and easy to use too. I’d happily use this site (and do) whether I was just starting out as an investor or knew most everything I thought I needed to know.
Motley Fool Stock Advisor: Join for just $99 a year!
Best for: Those looking for comprehensive information on individual stock purchases
2. Morningstar
Morningstar’s tagline is “Empowering investor success.” The site stays true to its investment philosophy of putting investors first. That means they won’t give you investment advice based off of an affiliate relationship.
Instead, they share what they believe to be the best guidance for investors. Morningstar is probably best known for the ratings it publishes on varying investments.
If you want access to Morningstar ratings and detailed investment analysis, you’ll have to sign up for their premium account, which costs $199 per year. However, the site does have an endless number of free informational articles talking about all things investment-related.
Best for: Both beginner and seasoned investors who want detailed information
3. MarketWatch
MarketWatch is another top-rated investment site. It’s a good site for keeping up to day with the latest investment and economic information.
The site shares global information for most all stock markets, commodities markets, forex markets and more. The Moneyist (the Dear Abby of personal finance and investing) is a personal favorite for me.
He answers questions ranging from “Do I have enough to retire?” to “My brother won’t give me my share of our father’s inheritance. What do I do?” and more.
You can also find personal finance information on the site. MarketWatch is full of useful information, easy on the eyes and a pleasing website to navigate.
The site also shares valuable news articles from around the web, whether it be auto reviews or best retirement spots.
Best for: Anyone who wants to find up-to-date investment and other financial information quickly and easily.
4. Barron’s
Barron’s is an investment site for the serious investor. This site is formatted most like the newspapers of old. Clear and concise, Barron’s shares market information along with its favorite current stock picks.
The site’s e-magazine contains articles about popular publicly traded companies’ ups and downs. And the site’s e-advisor keeps you up to date on it’s favorite investment moves.
The articles and information are written smartly and simply. However, they assume you’ve got a solid basic understanding on investing and economics as a whole. While Barron’s is a phenomenal site for seasoned investors, beginner investors might want to stick with one of the other sites mentioned here.
Best for: The seasoned investor who wants a wide span of information on current economics and company performance.
5. Wall Street Journal
I clearly remember seeing my grandfather and his friends perusing over the Wall Street Journal in the early 90’s as they shared breakfast together at the local greasy spoon.
My family and I would eat there on occasion, but we never interrupted the group other than to say “hi” to grandpa and give him a quick hug. Yep, this group of wealthy men would never spend more than $10 for breakfast, but they all had the money to buy the cafe’ if it ever went up for sale.
Thank you, Wall Street Journal. For as long as I can remember, the Wall Street Journal has been the go-to source for those seeking investment advice. It’s changed with the times but still stayed the same, keeping its “real” paper but managing a well-put-together website too.
Wall Street Journal covers everything regarding economic markets in the U.S. and the world. And it tosses in some articles on politics, tech, and current events as well.
The online website headlines are free, but if you want complete information you’ll have to pay for the digital editions, print editions, or both. The good news is that WSJ is affordable at no more than $20 per month. Therefore, we love it as one of the best investment sites.
Best for: Investors that want to get the scoop on the markets and the rest of the world’s happenings, as well as those craving that great feeling of holding a printed newspaper in their hands.
6. Zacks
Zacks is an investment website that’s committed to independent research analysis. The Zacks “About” page says their strategy has beat the S&P market by quite a length (over double) for the past 25+ years.
Of course, past performance is not a guaranteed indicator of future results, but it sure does tell you a thing or two. Namely that the group at Zacks knows their stuff when it comes to investing.
While the site provides a wealth (no pun intended) of free information, you’ll have to pay to get the inside scoop on the Zacks investment strategy. That includes the Zacks #1 rank list of 220 of the best stocks.
They offer a 30-day free trial. After that, you’ll pay $249 a year to continue getting access to Zacks’ investment secrets.
Bonus: Zacks links to the best articles from popular sites such as MarketWatch too.
Best for: The serious investor who’s willing to take the time to learn about in-depth investing.
7. Seeking Alpha
Seeking Alpha does a great job of delving deeper into the “whys” behind investing in a particular stock or fund. While this is a terrific feature for experienced investors, beginner investors may find the information a bit lofty.
Seeking Alpha is part investment news source and part investing community. Articles are written by investor members and then rigorously scrutinized to ensure accurate information.
With over 7,000 members, there’s no shortage of investing information and opinions. The site is great for those who want to do some in-depth research on markets, stocks, and investments.
The Basic Seeking Alpha site is free. However, the site also offers a Premium membership for $240 annually and a Pro membership for roughly $2400 annually.
Think of the Premium membership as a self-directed site and the Pro membership as a full-service site. See the website for more detailed information on what you get with the upgraded memberships.
Best for: Intermediate and advanced investors looking for community support and advice
8. The Financial Times
The Financial Times (or FT as it’s often called) focuses primarily on stocks, funds, and stock news. But you’ll also find tech information, personal finance articles, and more. In-depth information on company performance rounds out the offerings.
The site has a nice collection of charts and graphics too. There are some free articles on Financial Times, but as with Wall Street Journal you’ll have to pay if you want full access.
Like Zacks, Financial Times is a bit on the spendy side if you’re not used to paying for investment information. Digital access is $39.50 per month or $369.20 per year. The print access subscription includes digital access and costs $199 per year.
You can pay $1 and get a 4-week trial if you’d like to sample Financial Times. And there are other subscription options as well.
Best for: Investors looking for a melting pot of investment and economic news, information, and opinion
9. CNBC
CNBC is a popular news channel with a focus on investment and economic news. While you can get CNBC regularly with many paid TV subscriptions, you can also access the company’s many articles for free on their website.
Current market numbers are conveniently displayed throughout the site. And you’ll find articles on investing, technology, business, politics, and more.
Under the “Investing” tab, you’ll find “Invest in You” and “Personal Finance” sections that have a wealth of articles aimed at making personal finance more, well, personal. These sections show you how to put the site’s advice into action and better your personal money situation.
If you want access to CNBC’s “PRO” content, however, you’ll have to buy a subscription. CNBC PRO gives you access to live programming, exclusive video series, and more.
It costs $29.99 per month to subscribe to CNBC PRO, or you can pay $299.00 annually. There is a 7-day trial period you can use to check it out.
Best for: those wanting a quick glance at the world’s most up-to-date economic information
10. Kiplinger
Kiplinger was started in the 1920’s by a former AP economic reporter. The Kiplinger Letter, the company’s weekly economic publication, is considered the most widely read business forecasting publication in the world, according to the Kiplinger website.
Kiplinger also has a monthly magazine. The Kiplinger website gives access to The Kiplinger Letter if you’re a member. You can find a wealth of free information on the site, including investment information. The site also shares informational articles on:
Retirement
Taxes
Wealth creation
Personal finance
And more. However, if you want the goodies like the print magazine and/or complete access to all website information, you’ll have to subscribe.
As of this writing, you can get access to print subscriptions, digital access, or both for $29.95 for 12 months or $39.90 for 24 months. But I think you might find it well worth the price.
One thing I really like about the Kiplinger site is that many of the articles are written in a way even the most beginner personal finance/investment aficionado can understand. The site has a great mix of both beginner and experienced investor articles and information.
Best for: Beginner and experienced investors who want print news and digital news
11. Stock Rover
Stock Rover makes our list of best investment sites because of its mission to help all levels of investors make informed decisions. The Stock Rover website works to provide affordable, comprehensive research to help investors learn before they invest.
The site can help you compare companies or investments, research reports, and manage your portfolio. Stock Rover’s blog includes investing articles, stock research articles, and other valuable information.
For instance, you can learn how to build a better stock portfolio. Of course, these features don’t come for free–at least not all of them. Stock Rover has four plans you can choose from, one of which is free.
While the “free” plan does provide a lot of information and articles, the paid plans provide other valuable tools. The Essentials, Premium, and Premium Plus plans range in price from $7.99 per month to $27.99 per month.
Watchlists, screens, and the number of portfolios you can manage go up with each plan. You can get additional information via other subscriptions on Stock Rover too, such as research reports plans and bundles.
Best for: People who want more of a personal touch as they invest
12. AAII
AAII, or the American Association of Individual Investors, is a non-profit organization aimed at helping people learn about investing and grow their investment portfolios. They’ve been in business for over 40 years.
The organization uses education, information, and research to help members learn about investing and manage their investments. Along with the AAII website, you may have a local chapter that meets in person in your area.
AAII has two membership options. The Basic membership is $1 for the first 30 days and then $3.25 a month going forward. You get access to the AAII market-beating portfolio, investor guides, and other information.
The Plus membership is $2 for the first 30 days and then $15.67 per month going forward. It includes additional benefits such as stock and fund evaluators and graders, and detailed portfolio analysis and alerts.
Both membership options include free access to the local chapters of AAII. In addition, you get access to the award-winning AAII Journal in digital format, print format, or both.
Best for: Those looking for investment guidance with a heart
13. Yahoo Finance
Yahoo Finance, albeit basic, is a good at-a-glance option for investment information. The site shares market numbers along with investment and economic news articles from around the web.
You’ll find links to articles from Reuters, MarketWatch, Investopedia and other well known sites. Yahoo Finance also has their own penned articles on the site. It’s a good one stop shop for economic news.
Best for: Those wanting access to current investment and economic news from a variety of sources
14. Investopedia
Last but certainly not least, we like Investopedia as one of the best investment sites for investment news. What started out as sort of a Wikipedia with a money/investing focus has morphed into a great resource for investing and economic news and information.
Along with current investment news, you can check out Investopedia’s stock simulator. And Investopedia Academy features paid online courses to help you learn everything you want to learn about investing.
The articles cover every type of investor from the beginner to the day trader. And while the courses do cost money, most of the basic information on Investopedia is free.
Best for: Those interested in an education-based investment site
Summary
With the plush selection of the best investment sites out there, there’s no reason you can’t stay up to date on current investment news. And there’s no reason that even the most beginner of investors can’t learn how to invest smartly and successfully.
There are investment sites out there for the knowledge levels and learning preferences of just about everyone on earth.
Laurie is personal finance writer and a licensed Realtor. Her goal in blogging is to help others find their way to financial freedom, and to a simpler, more peaceful life.
High mortgage rates might have cooled much of America’s spring real estate market, but this is by no means true across the board. In fact, homebuyers’ search for affordable housing has made certain markets hotter than ever.
“This spring’s housing market may be sluggish nationally, but April’s hottest markets are still seeing high demand and a quick pace of sale,” says economic data analyst Hannah Jones of the latest Realtor.com® Hottest Markets List.
This list ranks cities by examining two variables: demand (measured by the number of views per listing) and pace (measured by how long listings linger for sale before getting snapped up).
The city that nabbed the top spot in April for the second time in the data’s history is Concord, NH—the state’s capital. The New England town on the Merrimack River saw homes receiving 3.8 times more views than a typical listing nationwide, and remaining on the market a mere 17 days before buyers pounced. That’s a full month less than the typical home in the U.S., which lingered for about 49 days in April.
What’s Concord got that makes it so hot? Proximity to pricier Boston (just an hour’s drive north) and one of the most tax-friendly states around with no state income or sales taxes.
The Northeast’s ‘affordability advantage’
Many markets that populate the top of this list have what Jones calls an “affordability advantage,” although that affordability is often relative.
For instance, the top two hottest markets of Concord and Manchester, NH, have median home prices ($522,000 and $533,000, respectively) above the national median of $430,000. Yet the prices are a bargain compared with the $839,000 you’d have to pay in nearby Boston (which, incidentally, ranks as the 14th hottest market and is by far the priciest on this list).
As real estate broker Pamela Young, of Re/Max Insight, who sells homes in both Concord and Manchester, puts it, “It’s nice to be able nice to travel to Boston without having to live there—or pay their taxes.”
Watch: The 3 U.S. Cities Where Rent Prices Have Dropped the Most
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Rounding out the top five hottest markets are a cluster of fellow Northeastern towns, including Hartford, CT; Rochester, NY; and Springfield, MA. (Metros include the main city and surrounding towns, suburbs, and smaller urban areas.)
In fact, adds Jones, “nine of the 12 Northeast markets on this month’s list are clustered together, generally surrounding the Boston area. Both Massachusetts and the larger New England area boast strong employment data, outpacing the U.S. in employment growth over the last year. High housing demand and tight inventory keep upward pressure on prices and, as a result, buyers are looking farther afield for affordability in the region.”
The rise of Midwest real estate
Despite their sunny climes, the West and South are stuck in a deep freeze when it comes to breaking into the hottest markets, failing to crack the top 20 list for the second month in a row. While the Northeast boasted the most markets on the list. with 12 cities, the Midwest represented the remaining eight.
Illinois and Missouri each have one hottest market on the list, and Wisconsin, Ohio, and Indiana each nabbed two spots. All of the Midwestern markets received an average of 2.5 times more views than usual and spent an average of two fewer weeks on the market.
Buyers are heading inland in the hopes that lower home prices will take the edge off today’s hefty mortgage rates, which currently average 6.39%, according to Freddie Mac.
“Overall, 13 of April’s hottest markets had median listing prices below the national median,” adds Jones.
The average listing price for these Midwestern markets was $310,000. But the lowest-priced Midwestern market is Rockford, IL, which had an average list price of $180,000, 58.1% lower than what the rest of the country saw in April.
“Buyers are out there,” says Rion Tovar-South, the designated managing broker and owner of Weichert Realtors Tovar Properties in Rockford, IL.
They are driven to Rockford by “lower taxes and more attractive home prices,” adds Tovar-South. “In addition, our agents are seeing buyers moving from the Chicago area as well as individuals that previously moved out of state moving back.”
But how long will home prices stay low?
Yet homebuyer demand in these hottest markets means available homes are disappearing fast.
“While inventory has increased 48.3% relative to last April at the U.S. level, all of the hottest markets except Fort Wayne, IN, have seen either slower inventory growth or even inventory decline,” says Jones.
“Inventory is still low in our market. We definitely need more sellers to list their homes,” adds Tovar-South. Indeed, Rockford’s inventory has dropped 23% compared with a year earlier.
And fewer homes for sale drive up competition among buyers, which can bring on bidding wars. And bidding wars lead to rising home prices as sellers see an opportunity to cash in.
Even where home prices are low, these hot markets have seen prices increase by 17.2% year over year on average. To put that percentage in perspective, consider this: It’s seven times greater than the national price growth rate of 2.5%.
“April is the ninth month in a row that the average hottest markets’ price growth climbed beyond U.S. price growth, which has been falling since June,” says Jones.
So buyers looking to snag a good deal might not want to wait too long to start shopping.
If you’re a Netflix fanatic like us, you’ve probably binged shows like Selling Sunset or The Real Housewives of Beverly Hills, meaning you already have an idea of what life is like in sunny Los Angeles — and its ritziest surroundings.
The truth is, Cali living is just about as glamorous as you’re imagining. Just by walking on the streets of L.A., you’re bound to bump into Hollywood celebrities at some point in the week — and there’s no place with bigger odds for celeb spottings than Beverly Hills.
Biggest celebrities living in Beverly Hills, California
If you’ve ever wondered what celebrities live in Beverly Hills, we’re here to solve that mystery for you. Because it’s not just housewives who live here if you know what we mean (we’re looking at you, RHOBH fans).
Some of the most famous people in the world reside in Beverly Hills, and we’re about to give you a run-down of our favorites.
After a little bit of real estate detective work, we’ve compiled a list of celebrities who live in Beverly Hills at the moment – they do tend to move around a lot. If you’re planning a visit and are thinking of taking a tour of celebrity homes in Beverly Hills, then make sure these next Hollywood stars — and power couples — are on your list.
John Legend and Chrissy Teigen
Celeb power couple John Legend and Chrissy Teigen paid $14.1 million to buy Rihanna’s former home in Beverly Hills back in 2016. The couple and their two children made the most of their stunning home during Covid19 lockdown and shared jaw-dropping images of the family hanging out at the property.
But the couple was soon ready for a change, and they listed their long-time home for close to $24 million in the summer of 2020. They found their new dream home pretty quickly, and it was another Beverly Hills gem that cost them $17.5 million – a price worth paying for the zip code alone (90210).
The couple’s new home features 6 bedrooms, 9 bathrooms, a 10,700-square-foot open floor plan, and 24-foot ceilings. They also get panoramic city-to-sea views from almost every corner of the house – a pretty nice upgrade, if you ask us.
SEE INSIDE: Chrissy Teigen and John Legend’s house, a Beverly Hills trophy home
Ashton Kutcher and Mila Kunis
A sporadic Shark Tank host and savvy investor, Ashton Kutcher knows how to wisely invest his growing fortunes. And it’s no surprise that the former That 70s Show actor, along with his equally (if not more) talented wife joined the ranks of celebrities living in Beverly Hills.
Mila Kunis and Ashton Kutcher live in a striking hilltop farmhouse that overlooks the rest of Beverly Hills. The two have taken the farmhouse life seriously and set out to turn their million-dollar property into a fully sustainable farm.
Fun fact: Ashton Kutcher (@aplusk) and Mila Kunis have the sustainable L.A. farmhouse of your dreams (and ours, too, for the record).
The design-obsessed couple gave us a tour of their six-acre property for the cover of our June issue: https://t.co/DDOzrGEiSr pic.twitter.com/5LS1WPYu7c
— Architectural Digest (@ArchDigest) May 18, 2021
KuKu Farms, as the couple lovingly call their homestead, now features a well — that irritates the land — and a corn field, on top of a sprawling garden full of squash, tomatoes, lettuces, and more.
But don’t let that fool you into thinking the property is a rural farmstead. In fact, it’s one of the most beautiful celebrity homes in Beverly Hills, proving that style and sustainability are not mutually exclusive.
Jack Nicholson
Jack Nicholson owns many properties across the country, but his long-time residence is located in Beverly Hills, on the notorious Mulholland Drive.
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The multiple Academy Award winner is a veteran Beverly Hills celebrity resident, having first bought his property in 1969, purchasing additional parcels over the years to expand its footprint. He even bought Marlon Brando’s former neighboring home in 2005, razed it, and had it rebuilt.
Nicholson’s Beverly Hills home is also famous for darker reasons. It’s here that director Roman Polanski reportedly abused an underage girl, while Nicholson and his then-girlfriend Anjelica Houston were away.
The original house that used to stand on the site burned down, and various other incidents took place on Mulholland Drive, leading some to claim that the entire area is cursed. Maybe that’s what inspired David Lynch to make a movie about it.
Taylor Swift
Taylor Swift’s Beverly Hills abode is in a league of its own. The singer paid $25 million for movie mogul Samuel Goldwyn’s home back in 2015 — yeah, that Goldwin, you know, of Metro Goldwyn Mayer?
Swift’s mansion was actually granted landmark status in 2017, which means the young musician now owns a piece of Hollywood history. The property has never before been owned by someone not part of the Goldwyn family, so Swift is also writing history, if you think about it.
The 10,982-square-foot mansion is to be restored to its former glory, with the approval of the Beverly Hills City Council, of course.
The singer also owns a sprawling house in Rhode Island, which got a shout-out on her 2020 album, Folklore, with the song The Last Great American Dynasty paying tribute to the wealthy (and eccentric) socialite that owned the house before her.
SEE ALSO: Taylor Swift’s Holiday House — Home to “the Last Great American Dynasty”
Adele
Grammy-winner Adele is another Brit who has a thing for California living. The singer purchased her first home in Beverly Hills in 2016 for $9.5 million, and her second in 2018, after splitting from husband Simpon Konecki.
She didn’t venture very far to find her second home, though, as the two properties are across the street from each other. Adele’s second Beverly Hills abode cost her $10.65 million and was built back in 1961 in the gated community of Hidden Valley. It was previously owned by film producer Michael Hertzberg, according to the L.A. Times.
But the singer didn’t stop there.
Adele added another stunner to her real estate portfolio in 2022, when she shelled out $58 million for a property previously owned by Sylvester Stallone.
Adele’s sprawling mansion boasts the iconic 91210 zip code and is located in Beverly Park, which is still pretty close to Beverly Hills if you ask us. The new luxurious estate is now her home base, although she continues to own several properties in Beverly Hills.
SEE INSIDE: Adele’s house in Beverly Park, the $58M ‘house that Rocky built’
Sandra Bullock
Actress Sandra Bullock is also part of the elite group of Hollywood stars who reside in Beverly Hills. Our beloved Miss Congeniality paid $16.9 million in 2011 for a seven-bedroom mansion right next door to Ricky Martin.
Bullock also used to own a 3,153-square-foot home right above the Chateau Marmont on the Sunset Strip, which she rented out for a whopping $18,500 per month. She reportedly had enough of her role as landlord and sold that property in 2018.
An avid real estate investor and collector, Bullock has an impressive real estate portfolio to her name. While her current home base is in New Orleans, Louisiana, Bullock also spends time at her residences in Beverly Hills, Malibu, Austin, and New York City, to name just a few.
In early 2021, the actress paid $2.7 million for a 1946-built bungalow nestled in the mountains above Beverly Hills. The multi-acre property features 3 bedrooms, 3.5 bathrooms, a swimming pool with a waterfall, and gorgeous views. The Hollywood actress likes to keep her personal life private, so there’s no telling how much time she gets to spend at each of her various properties.
Jennifer Lawrence
Hunger Games star and Hollywood darling Jennifer Lawrence moved into her gorgeous Beverly Hills home back in 2014. The luxurious five-bedroom home came with a price tag of over $8 million, and an impressive list of previous homeowners, which includes Jessica Simpson and, shocker, Ellen DeGeneres.
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The property boasts a romantic, European-inspired vibe, which you might not have expected from a strong personality such as Lawrence. The actress enjoys beautifully landscaped grounds, a koi pond, a swimming pool, and even a home gym. No wonder she’s in such good shape.
Nicole Kidman and Keith Urban
Actress Nicole Kidman and her husband, country singer Keith Urban purchased their current Beverly Hills residence in 2008 for roughly $4.7 million, adding to their already heavy portfolio of real estate.
Since the acquisition, Kidman and Urban upgraded the property to include fun amenities for their children, including a jungle gym, a pool slide, and a chic cabana.
Their main residence is still in Nashville, but they own properties across the U.S., and their Beverly Hills mansion is reportedly one of their favorites. We say reportedly, because the couple is very private, and not much is known about their whereabouts. Even the interior of their Beverly Hills home remains a mystery, but we can safely suspect that it’s nothing short of glamorous.
Jason Statham and Rosie Huntington Whiteley
Next up on our list of Beverly Hills A-listers is probably the most good-looking couple on the planet. British movie star Jason Statham and supermodel Rosie Huntington-Whiteley settled in Beverly Hills in 2015, when they paid $13 million for a stunning five-bedroom mansion.
Their incredibly beautiful home was designed by Jenni Kayne, and is a perfect mix of contemporary architecture and timeless elegance. We wouldn’t have expected any less from the Victoria’s Secret model, as her taste is always impeccable.
You can take a peek inside the couple’s Beverly Hills mansion by watching Vogue’s 73 Questions With Rosie Huntington-Whiteley video:
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Not to mention that Statham is a passionate houseflipper. The couple and their young son spent lockdown at their modern mansion, where Rosie even filmed several Youtube videos sharing her beauty and style tips.
Kendall Jenner
Kendall Jenner’s art-filled Beverly Hills home is so gorgeous that it was even featured in Architectural Digest. The supermodel gave us all a sneak peek inside her sprawling, $8.55 million Mulholland Estates home that was once owned by Hollywood bad boy Charlie Sheen.
Jenner purchased the house back in 2017, and she listed a team of experts to help her redesign it to her heart’s desire. The result is a cozy, serene, and quiet escape from Jenner’s busy daily life, and a perfect retreat away from the prying eyes of the media.
The 6,625-square-foot home features meditation corners, a peaceful backyard, and an art studio where Jenner gets to unleash her creativity.
SEE ALSO: Keeping Up With the Incredible Homes of the Kardashians – the 2023 edition
Jeff Bezos
Amazon CEO Jeff Bezos is another celebrity with an impressive real estate portfolio under their belt. But this one is on an entirely different level, because Bezos owns the most expensive property in Beverly Hills, and probably one of the priciest in California.
Bezos paid a whopping $165 million for the Jack Warner Estate, previously owned by David Geffen, in early 2020. It was a record sale for a private residence in Los Angeles County, and one of the priciest residential sales in the country.
The Warner Estate was built back in the 1930s and is a one-of-a-kind historic gem worthy of Great Gatsby-style parties. Since purchasing the luxurious mansion, Bezos invested heavily in upgrades, adding a pool house, a powder room, and more high-end amenities.
Lizzo
In October 2022, acclaimed singer and songwriter Lizzo paid $15 million to snag Harry Styles’ former luxury mansion in Beverly Hills. The house was built in 2019 and boasts the legendary 91210 zip code, as well as 5,300 square feet of living space, 3 bedrooms, and 4 bathrooms.
Nestled in a private, gated community perched in the mountains atop Beverly Hills, Lizzo’s new home was owned by singer Harry Styles from 2014 to 2016. Since then, the property was remodeled and upgraded to meet the needs of modern A-list buyers like Lizzo.
The musician has not been shy about showing off her new digs, posting content on social media of her enjoying her stunning home theater or gorgeous infinity pool.
Rihanna and A$AP Rocky
Rihanna made the news rounds in 2023 after headlining the Super Bowl halftime show, reaching another level of awesomeness in her career. Luckily, she’s got quite a few luxury properties to retreat to and unwind after an adrenaline-driven show.
The singer boasts quite an extensive real estate portfolio, splitting her time between her properties in Beverly Hills, Century City, the Hollywood Hills, and Barbados.
Rihanna had a busy year in 2020, purchasing a five-bedroom mansion in Beverly Hills’ 91210 zip code for $13.8 million. Just months later, she paid $10 million for another four-bedroom mansion right next door. This investment might be a sign that this is where the singer and her partner, Asap Rocky, plan to settle down and raise their growing family.
The 7,600-square-foot home was built in 1938 and features 5 bedrooms, 7 bathrooms, huge walk-in closets, marble bathrooms, large private terraces, and stunning views. But above everything, the property offers privacy from the inquisitive eyes of the paparazzi.
Who knows, the house next door could house a recording studio, additional security and staff, or more baby rooms!
SEE INSIDE: Rihanna’s house in Beverly Hills
These are just some of our favorite celebrities who live in Beverly Hills. This eclectic enclave is a magnet for Hollywood stars, so the list could go on and on, but we’ll stop here – for now. Stay tuned for more celebrity-related real estate coverage on Fancy Pants Homes!
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