Paying for an average home is a rough process — a hefty down payment can wipe out savings, the paperwork feels endless and the mortgage often lasts decades.
In the upper echelons of the Southland residential real estate market, financing isn’t much easier — it just involves more eager-to-please private bankers, vast reserves of cash and massive, multimillion-dollar loans.
Los Angeles is the fifth most important center of wealth in the world, based on the current and projected population of well-heeled residents, the value of property investments and connectivity to other global hubs, according to the most recent wealth report from British consultancy Knight Frank. Only London, New York, Hong Kong and Shanghai rank higher.
Prices in the city’s luxury residential market ballooned 5.3% from 2015 to 2016 — the largest increase in the U.S. behind Seattle’s 9.7% upswing, according to the report.
Nationwide, the median price for a luxury home at the end of July was $1.6 million, according to the Institute for Luxury Home Marketing.