Real estate has long been considered by many as the most stable, most lucrative, and the safest investment one could ever make – either by owning, flipping, or renting a property. If you have the money, you may want to diversify your portfolio, buy a luxury property like a vacation home or high-end condominium and invest in the luxury real estate market.
It is important to have a good understanding of the features and benefits of luxury properties before you invest. A high price tag is not the only thing that puts a property in this category. It has to be unique, premium, and exclusive and allows a luxurious lifestyle.
Affluent buyers prefer locations with easy access to luxury activities such as fine dining, shopping, sports, and the arts, as well as proximity to other luxury properties. Many also seek natural beauty, landscapes, waterfront locations, or mountainside views. They desire most of the features that all homebuyers look for but on a much grander scale.
Think about privacy, tight security, exclusivity. Beauty inside and out is characterized by custom architecture, attention to detail, and clean finishes. High-end buyers are also after state-of-the-art amenities like a luxury pool, outdoor living space, not to mention smart home features and accessories.
It is surprising that despite the pandemic, the wealth of the country’s richest people is still growing, making the potential market for luxury properties larger than ever.
Luxury buyers often pay cash, but others also consider a jumbo mortgage. If you’re financing the property purchase, you will need a large down payment, excellent credit, proof of income and assets, and large cash reserves.
If you are interested in buying a luxury property for your own use or for investment, here are some tips for investing in luxury real estate.
Flipping luxury real estate in the Philippines
Investing internationally
Buying a luxury condominium
Buying a high-end vacation home
Completing a custom build home
Ghiberti luxury house model in Portofino Vista Alabang.
There are a lot of mansions or luxury properties in the country. You may consider remodeling existing luxury properties which can potentially yield a higher return on investment. You just have to carefully select the luxury property with the right mix of architecture, condition, and style.
Luxury properties tend to be more well-maintained than regular homes, which is beneficial as it will only require fewer rehabilitation costs. In terms of competition, there are fewer flippers in the luxury home market because there are fewer people with the know-how to secure financing, negotiate, and execute a luxury property project at a high level.
There are a lot of luxury property options available in the international real estate market. Investing in one can have benefits that you would not find domestically. According to RE/MAX Real Estate Group, there are some areas like the Turks and Caicos Islands, a small British territory in the tropical Atlantic Ocean, that have no annual property taxes and no capital gains taxes on transferred real estate property. The property ownership is protected by a land registry, and the U.S. dollar is the official currency. These islands have been a good place to invest because land prices have increased steadily over the last ten years pre-pandemic.
If you are investing internationally, you can earn additional income from your investment by renting it out while you are away and letting a property management company handle the details.
To ensure a safe investment abroad, use an international real estate attorney and other professionals to help with your due diligence.
Alpine Villas at Crosswinds Tagaytay provides you with the perfect real estate opportunities gift-wrapped in a high-value investment.
Whether you are planning to purchase a luxury condominium for your own use or to rent out, you have to consider the location. Buying a luxury condominium with poor transportation options will never be a good investment.
You also have to look at the services, features, and amenities which can either make or break your investment. Consider the views, terraces, smart home technology, and other features that will differentiate your home from the other properties. These factors can also influence the price once you decide to sell the property.
Remember that when you buy luxury real estate, you buy a lifestyle. Think about those private roof decks, swimming pools, common spaces with fitness and wellness centers, and hotel-style services, these are the distinguishing factors that make these luxury properties millions worth.
A high-end vacation home rental can provide a number of benefits which include property value appreciation, business networking opportunities, and personal enjoyment. You just have to choose a good location with a strong market.
Additionally, you have to consider buying a property that will be attractive to vacationing families. Investing in a high-end vacation home is great for seasonal income and may also perform well during good financial markets.
A custom-built home offers the highest profit margins but often takes a longer time frame. If you are not building a home for yourself, you have to be careful about how you customize it. You may want to check on the layout, amenities, and finishes that will appeal to most luxury homebuyers to maximize your chances of selling the property quickly at the price you want.
You also have to make sure that the home is functional and has the privacy features that the luxury homebuyers want. With luxury real estate, the more exclusive and harder to find the property is, the more worthy of an investment it becomes.
If you are keen on investing in luxury real estate, you have to keep in mind a few things before getting started:
The main goal of investing in any real estate is to earn a return on your investment. When you choose luxury properties like a mansion, high-end condominium, luxury house and lot or vacation home, consider the outcome that you want.
If you plan to turn a quick profit, you might want to focus on flipping. If you want long-term passive income, you may consider a luxury condominium unit or high-end apartment building.
Communication is the key to everything!
Even if you have cash on hand, it may not always be the best option. Consider other options too like a hard money loan that might be appropriate to finance a flip that you plan to complete within a few months.
Before you invest in a luxury property, make sure that there’s a market you’re serving. Check on the job market, cost of living, median household incomes, and the property location’s economic outlook.
If it’s going to be a rental property, consider the year-round and peak-season traffic.
Investing in luxury real estate can be more exciting than investing in stocks because of its stability and tangible nature. You can explore different options on how you can get started in luxury real estate investing, from building a custom home to flipping a mansion to buying a vacation home. Not to mention, you can also enjoy your luxury home as a resident, vacationer, or landlord, or you can build a luxury home for other people to enjoy.
But before you invest, make sure that you fully understand the features that create lasting value in this particular asset class to get the best return on investment. Unless you are purchasing a luxury property to live there, you also have to consider the market of home buyers or renters for your luxury property investments.
If you are planning to invest in luxury properties for sale, Brittany Corporation, the premier name in luxury real estate development in the Philippines and a subsidiary of the largest homebuilder Vista Land & Lifescapes, Inc., offers Old European and American-themed projects and creates masterpieces of upscale living for luxury homebuyers with a taste for artful living.
Keep track of your tasks and objectives by utilizing digital innovation.
Brittany Corporation offers a fine selection of home designs in excellent locations: Portofino in Alabang, La Posada in Sucat, Augusta, Georgia Club, and Promenade in Sta. Rosa, Laguna, and Crosswinds in Tagaytay.
Brittany Corporation’s communities continue to offer luxury properties that are rich in character and sophisticated in thematic appeal. For more information on Brittany Corporation and its roster of luxury-themed properties, visit their official Facebook page.
You’re going to want to be sure to work with a luxury real estate sales professional who has a proven track record and experience in successfully navigating the luxury real estate market. All real estate sales professionals have their specialties and it is necessary that you understand the ins and outs as well as the trends in luxury real estate.
Brittany Salesforce, the official selling arm of Villar-led Brittany Corporation, is composed of real estate sales professionals with vast experience in luxury real estate and a proven track record in handling and servicing the most prestigious clientele in the country.
For more information on Brittany Salesforce and its luxury properties, visit Brittany Salesforce Facebook, Instagram, or LinkedIn.
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