Looking for a safe place to invest your savings? Then maybe you should think about luxury real estate investment. You’ve seen the headlines. Luxury homes selling for record-breaking prices. Luxury property values appreciating even while other properties remain unsold. The fact is, that even given the current poor economic climate, luxury home investment remains a lucrative option for anyone looking to make money with their savings. Now why is that?
One of the main reasons is that luxury property markets benefit from insulation from problems affecting other markets. While a poor economy might stifle other sectors of realty, these problems do not affect the wealthy in the same way. Another reason is that foreign investment is a big factor in luxury property, as the US remains one of the most desirable countries in the world in which to own a second home, thanks to its quality of life and education services, amongst others. The result is that foreign investment often helps to keep luxury real estate markets in good shape, even if the other markets are struggling.
So how can you prosper in luxury real estate investment? A real estate consultant will tell you that while there’s no strict formula you can follow to make certain your investments pay off, there are some basic rules to follow that will give you a very big chance of success.
Firstly, you need to understand the meaning of luxury on a personal level. You need to recognize the kinds of luxury homes that are going to appeal to buyers. For various reasons, the media often define luxury homes as any property that costs over $1 million, but this is just simplifying things. Luxury could mean a desirable neighborhood, ease of access to popular destinations, or those little extras such as a Jacuzzi, a tennis court or a trophy room. To be an educated buyer, you need to learn to identify the things people want.
When we buy homes, especially luxury homes, we need to be hands on in their real estate transactions, so they can increase their flexibility and the speed of their purchases when buying luxury property. In many cases with luxury real estate, it’s necessary for buyers to move quickly, or strike while the iron is hot, so to speak. This is because luxury homes attract big spenders with lots of disposable cash, or at least the ability to easily borrow the money they need. Luxury property is also advertised nationwide rather than just locally, so it nearly always attracts much more interest.
Also, it pays to keep an open mind about luxury real estate investment. It used to be that, when some mentioned luxury real estate, people would immediately think of the east coast or the west coast. Not anymore. Nowadays, there are areas in many states that are considered to be highly desirable, providing many more opportunities for investors like you. Learn what makes a desirable location, and realize that these are often found in the most unexpected of places.