Condo-buyers starting their home search in Los Angeles want to know what price range to look in. I recommend to get a preapproval letter with a lender as soon as possible for two reasons: 1) the lender will tell you how much you can afford 2) if a property comes on the market that you want to buy you will be ready to make an offer right away.
Condo’s are a little different than single family homes. They have a monthly Homeowner’s Association dues. The amount of the HOA dues vary by the size of the building, and the amenities it offers. Buildings with Valet, and front door man tend to have HOAs starting around $800 and going up into the thousands, whereas buildings with a simple fitness room and a heated pool are in the $400 to $500 range. The absolute lowest that HOA dues can go is $250 per month.
In the monthly cost estimate I assumed 20% downpayment at a 4% interest rate on a 30 year fixed loan, and the monthly cost includes mortgage payment, taxes, insurance and utilities and HOA dues. If you are putting less than 20% down, then you will need Mortgage Insurance, which will be an additional monthly cost. The Annual Income was estimated as 35% of monthly cost- the most lenders will lend is 45%, although if your debt to income ratio is this high you will pay a higher than normal interest rate. These are estimates, actual costs will be different.