Investing in Luxury Properties – Building a luxury property portfolio

It’s important you know what luxury properties are before you invest. Not all pricey means luxurious – It’s not just the price tag that puts a property in this category. It has to be unique and exclusive—in an extraordinarily desirable way. People who invest in luxury properties do not mind paying for a superior class.

High-end property investors want locations with access to luxury activities such as high-end shopping, dining, and the arts, as well as proximity to other luxury homes. A trophy address adds value.


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Having skylines like most unique offerings of property with a view is an edge too. Any luxury buyers seek the natural beauty of a waterfront location, or at least views of a river, ocean, or lake. Others want countryside or mountainside views.

High-end buyers desire many of the same features that all buyers want but on a grander scale. They want privacy and security, sometimes to the point of seclusion. They want beauty inside and out and can afford custom architecture, custom design, over-the-top attention to detail, and opulent finishes.

They also want amenities on top of amenities: a chef’s kitchen, luxury pool, expansive owner’s suite, and outdoor living space, not to mention home automation, motion detectors, car lifts, and temperature-controlled wine cellars. Many also want space, but you certainly don’t need a massive home to live in luxury.

When choosing a luxury home, it’s extremely important to think about the aspects of the property that can’t be changed, one expert said.

How to Invest in Luxury Properties

If you want to invest in luxury properties, there are several options to consider. Whether you buy for yourself, have it rented, or remodel to sell, here are some options:

  • Sell a High-End Home
  • Invest internationally
  • Buy a luxury apartment

Sell A High-End Home

Remodelling existing luxury properties is an option that may have the potential for a higher return on investment. Still, you’re limited to properties in the inventory that have just the right mix of architecture, condition, and style.

Luxury homes tend to be more well-maintained than non-luxury homes, which means there is potential for fewer rehabilitation costs.

The downside to this is that competition may be higher among luxury home flippers, but the upside is that there is less competition in the luxury-home market overall.

That’s because there are fewer people with the know-how to secure financing, negotiate like a pro, and execute a luxury property rehab project at a high level.

Invest Overseas

Investing in luxury property overseas can have benefits you won’t find in your country. It can vary from the capital gains and the capital gains taxes per country.

COVID may have changed a lot of things when it comes to serviced accommodation businesses, BUT you can earn additional income from your investment by renting it out while you’re away and letting a management company handle the details.

Choosing what luxury properties to invest in

Whether you buy a luxury apartment for yourself or to rent out, “spending money on a home located in a great luxury building with amenities and transportation options nearby is the way to go. As always, location matters. Buying in a luxury-looking building with poor transportation options is a poor investment.

The services and features the building offers can also make or break your investment. Don’t have a full-time doorman? Fine, but what else does your home offer? Views, high ceilings, terraces, all of these features help distinguish your home from other cookie-cutter apartments and can lead to a higher selling rate when it’s time to move out.

Keep in mind that when you buy luxury real estate, you buy a lifestyle. Private roof decks, swimming pools, common spaces with fitness centres, and maid service or hotel-style services distinguish luxury real estate. Even if there are other new high-end properties built around the home you buy, these types of properties hold value.

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