For those on the hunt for their next real estate investment, consider luxury. While many hesitate to put their money into this type of real estate property due to its considerably high cost and risk, luxury properties make a promising investment option. Here’s why:
What is a luxury property?
A luxury property is a high-quality home built with long-lasting materials. Luxury properties come in all shapes and sizes from single-family homes to high-rise condominiums. These real estate property types are typically larger in size than normal houses and buildings. These also fetch a higher price tag than the average home.
Reasons for investing in a luxury property:
- Luxury homes offer the highest quality of living
To invest in a luxury home is to invest in the best. Typically designed with modern architectural interiors, luxury homes boast of high-end amenities and unique features. Some of these features include smart home technology, stateof- the-art kitchen appliances, swimming pools, and guesthouses. They also offer more space inside and outside of the house, especially in the kitchen, living room, and bedrooms.
Luxury properties are also typically located in gated communities, giving residents round-the-clock security and privacy. This unique lifestyle offers the best location for vacations and holiday getaways.
- Luxury real estate caters to a global market
Everyone wants to own a piece of luxury real estate, especially buyers from other countries. According to a 2018 article from Forbes.com, 38% of buyers from all over the globe are interested in buying into luxury real estate. The high demand for this type of real estate due to its appeal to a bigger audience leads to higher prices.
- Luxury real estate provides a higher return on investment
Since luxury properties are an attractive piece of real estate, they have the potential to become vacation rental properties. The cost of renting a home is also on the rise, allowing you to earn back the money spent on purchasing the luxury property. These kinds of properties can also generate high rental income based on the property’s location, features, amenities, and home design.
- Luxury real estate maintains a strong and healthy market
According to the Institute for Luxury Home Marketing 2018 luxury review for November, the luxury market in North America remains strong. Prices for single-family luxury homes rose by 8.5% while the number of sales for November 2018 rose by 2.6%.
- Luxury properties allow you to build your real estate portfolio
For those who want to grow their real estate portfolio, owning a luxury property is a good start. The luxury real estate market is a promising market with high growth potential. Many developers are also focused on building high-end new construction homes, giving buyers plenty of luxury properties to choose from.
Start your luxury real estate investment journey with The Kimberly Lowe Group, Arizona’s number one real estate team. Contact the team today at 480-363-1622or send an email to sold(at)thekimberlylowegroup(dotted)com.