Real estate has always been considered a safer investment, whether you own, flip or rent.
If you have the money, why not expand in the luxury real estate market.
While luxury homes are usually associated with the glamour and grandiose of Hollywood and being flashy, they are also popular assets, and there is still a lot of money in luxury homes.
Key points
- Real estate isn’t considered luxury just because it is expensive. It also needed to be one of a kind and perceived as superior.
- High-end buyers will want to access luxury activities like shopping, dining, the arts, and proximity to other luxury homes.
- Luxury real estate investors can flip a mansion, invest internationally, buy a luxury condo, buy a high-end vacation property, such as something like a plantation bay Ormond beach home.
Luxury real estate prices were high and have been soaring. For example, in 2019, the most expensive real estate sale was a Manhattan penthouse sold for $240 million, according to Miller Samuel Inc.
This sale is an obvious example that the potential market for luxury properties is more prominent than ever!
If you want to invest in luxury real estate, there are several paths you can take. Whether you buy for yourself, rent, or flip.
To flip a mansion may have the potential for a higher return on investment; still, you are limited to properties in the inventory that have just the right mix of architecture, condition, and style.
Luxury homes tend to be more maintained, so there is potential for fewer rehabilitation costs. So, there may be more competition in the flip trade.
Still, there is less competition in the luxury home market overall because fewer people know how to secure financing and execute a luxury rehab project at a high level.
Investing internationally can have benefits you won’t find domestically. For example, there are no annual property taxes in the Turks and Caicos Islands and no capital gains taxes on transferred property.
Property ownership is protected by a land registry, so exchange rates are not a factor in completing the purchase of your property’s future value.
You can also earn additional income from your investment by renting it out while you are away!
Or, you could just buy it for yourself! When you buy luxury real estate, you buy a lifestyle, private roof decks, swimming pools, but also remember that the services and features the condo may offer can make or break your investment.
So buying a luxury condo in a great location with amenities and transportation options nearby is the way to go.
Purchasing a luxury-looking building with poor transportation options is a poor investment.
If investing in luxury real estate sounds like a good fit for you, there are a few things to keep in mind before you get started. Identify your goals, future out financing, and choose the right market.
We have only gone through a few of the opportunities! It’s good to do your own research.
Ensure there will be a market of buyers or renters for your properties unless you are buying to live there yourself.
(Disclaimer: This content is a partnered post. This material is provided as news and general information. It should not be construed as an endorsement of any investment service. The opinions expressed are the personal views and experience of the author, and no recommendation is made.)