Getting The Most For Your Money In Luxury Real Estate
This guide will serve as an unofficial tutorial to help you with that, especially if you’re just now moving into the luxury market, or are considering expanding your overall portfolio of properties going further.
For most people, even those with vast means, real estate is one of the most important investments they could make. For some, an investment in real estate can be a life-changing foothold with an asset that will pay dividends for some time to come, and will retain investment over time.
It’s true that the basic house-buying market up to the luxury real estate field operates differently, with clients of discerning nature across the scale. That said, even experienced real estate investors want to get the most for their money, it’s in the word “investment” after all.
Getting the most for your money in a luxury market can be different from selecting the basic markers of value you may be used to. This guide will serve as an unofficial tutorial to help you with that, especially if you’re just now moving into the luxury market, or are considering expanding your overall portfolio of properties going further:
Of course, it’s important to understand what you mean by “luxury” when deciding on an investment, especially in the real estate sphere. A house that might not seem luxurious could hold all the potential markers of a property being defined that way in future.
Most often, it’s best for luxury to denote quality, utility, craftsmanship, unique value, and character. If you can balance each property along those markers, you’ll be able to define what it is you’re looking for in a property like this to begin with. To get started, you could inspect luxury real estate listings to see the real estate being sought after right now, and how that fits within your own investment budget.
Location Takes On New Significance
Luxury real estate is valuable of course, buildings, architecture, and history have significance. However, location becomes much more important in terms of your potential investment when dealing with luxury real estate. Proximity to cultural centres and large cities, privacy, how much space you have away from public infrastructure, views, and owned land make a big difference to the premium providers of the land, and how much that is set to increase due to developing market rates.
For this reason, luxury real estate can always be extended, but land that comes at a premium may not. As such, always considering the latter in place of the former will help you make a more pointed investment decision.
Moreover, it’s important to realise that investing in luxurious real estate opens you up to the global market, not just that which may be within a fifty-mile radius of your current position. Keeping that in mind can help you source value wherever it may be.
While regular house buying may make use of a home inspector to ensure the sale is honoured within the correct parameters, luxury real estate often demands deeply comprehensive evaluations to make sure the listing and purchase are accurately managed.
For example, this might include depth charters into the grounds of the property, historical documentation and old deeds that may require the transfer of ownership, as well as properly marking the boundaries of land where that hasn’t already been marked out for some time — this is common in rural areas.
These evaluations can also help determine the status and considerations of property. For instance, if selling a barn as part of the real estate package, you may need to consider that bats have moved in, a protected species, and how this could influence your overall plans for renovation in the near term. Comprehensive evaluations help you move into the investment or purchase with clear eyes, unshrouded by the storied character of a long history.
Potential Is All
It’s important to remember that luxury real estate itself is valuable, but what you could do with luxury real estate may be where the real potential lies. This is why blank plots of land in desirable locations are often valued so highly, because of the potential that can come from structural investment there.
As such, try not to focus too much on the trimmings that can be easily installed, like outdoor pools or outhouses, and instead focus on what the land permits, and what you could get permission to construct.
A long driveway may seem barren and tired now, but with a good treeline, a centrepiece water fountain, and exterior garages, this space could add plenty of value to the property and also a great deal of joy, peace and privacy when living there. If you’re in a position to invest in luxury real estate, often it’s the foundational matters like this that matter most of all, as opposed to finding a property ready-made for you to live in.
Maintenance Costs, Security & Grounds Management
Luxury real estate tends to be larger, more complex, more finely-trimmed, and with higher maintenance needs than your standard house. That’s why it’s good to factor in the overall cost of maintenance while you’re planning your investment or next house move.
For instance, landscaping and keeping the grounds in good condition may add a hefty service charge each year, while some properties may reside in gated communities, which themselves may have a regular maintenance charge to ensure the surroundings are well-maintained.
In addition to this, it’s important to factor in security if you hope to keep your property safe and in good condition. Smart home security installations or whatever other apparatus you determine to be important, from baseline security measures all the way up to a manned presence, can be important to consider when investing.
If the property value is at a certain level, then this previous erroneous cost becomes necessary. The same can also go for housekeeping, particularly because cleaning larger houses takes time, and so having a professional able to keep a close watch over the condition of your home will retain your investment, and help you move forward protecting your new asset.
With this advice, you’re sure to get the most for your money in luxury real estate. Of course, utilising real estate purveyors you trust, having an eye for the market, and allocating your “must-haves” applies here too, as it would with any property purchase.
For more property reads, click here.