What Is Luxury Real Estate And How To Invest In Them
Luxury real estate is the topic of discussion in the real estate market. It has emerged as one of the hot favourites among the new and young homebuyers in the post-pandemic era. Going with the recent trends, there is an upward rise in the number of millennials investing in luxury real estate these days. Young people between 25 to 35 years have shown interest in buying luxury homes at posh locations in metro cities, especially in the NCR region in India.
WHAT IS LUXURY REAL ESTATE?
A luxury property is marked by luxurious features, high-end technologically sound amenities, unique designs and an exclusive experience. Luxury real estate comes in many forms. It can be an apartment, a condo, a house or even a fully-furnished mansion. The key features to differentiate are the overall appeal, location, technologically sound features, exclusive demography and luxury features that come along with the property. In terms of prices, the rates of luxury homes are rising on a different level, especially in the post-pandemic time period.
Also in the post-pandemic era, properties with lavish greenery around (owned/shared) is an important feature to categorize property as luxury property. Millennials are looking out for green & environment-friendly, sustainable luxury real estate properties for their real estate investment. They are also inclined to pay more for properties which are ESG norms approved and are investing in green projects.
HOW TO INVEST IN LUXURY REAL ESTATE?
To answer this, you need to know the purpose for which you want to invest in real estate that too in the luxury category as it is no easy task to invest in luxury real estate considering the huge price scale. Whether it is for your stay or for a profit, here are some options that you can opt for :
- Flipping A Mansion:
Flipping means investing in a real estate property only to sell it at a higher price, incurring a solid profit based on the market trends. With luxury real estate properties, things can be tricky but with the right type of research, real estate investors can earn huge profits. To resale any property, proper maintenance needs to be carried out in order to get good reselling value.
By remodelling a luxury property, you can incur higher returns. Usually, luxury properties are already well-maintained so the rehabilitation costs are usually on the lower side. Even though there is a huge competition for luxury real estate, there are not many flippers in the market to compete. To be a luxury real estate flipper, specialized skills are needed to flip a mansion. Proper bargaining, proper negotiation with a good profit margin, good research work, good contacts and low luxury property rehabilitation cost leads to a good deal.
- International Luxury Real Estate Investment:
You can very well invest in luxury real estate internationally. But before stepping in, you need to do thorough research work to know about the laws and regulations of other countries, where you wish to invest in. You need to appoint an international real estate attorney and other knowledgeable professionals who will guide you through your investment.
You need to know whether the government of that country has the authority to take away your bought property as per their terms. You need to know about the property taxes that would be added in. In case you buy a property to live in and choose to live for half a year, you can rent out the other 6 months. You can let your attorney and account management deal with this.
- Invest in a Luxury Condo:
A condo is a residential complex in which there are separate units, with each unit owned by an individual. When you buy a condo, you are buying directly from the condominium owner. You have your own separate unit. You just share some common amenities which come with the area.
A luxury condo holds a huge number of luxury amenities, like a walking area, gym area, joggers park, children’s park, swimming pool, jacuzzi, playroom and the list goes on. Keep in mind that the area has a good transportation network and is well connected too. Whenever you invest in any luxury real estate property, keep in mind all these points as that will help in future reselling.
- Invest in a Luxury Vacation Rental Property:-
This is the best investment related to luxury real estate. Investing in a luxury vacation rental property is a great utilization of a property in multiple ways. You can use it for personal enjoyment as well as rent it out to earn a good profit. People are opting for luxury vacation rental properties and this trend is rising more in the pandemic and post-pandemic situations.
Your investment can yield you benefits like asset appreciation, tax deductions, business opportunities, etc. But yes to yield profits, you need to maintain the property well and it needs to be well equipped with hi-tech amenities, sports activities, a playroom, video room, a personal swimming pool with a jacuzzi, a garden, a modern modular kitchen along with a good view and well-connected routes.
Also, read our article on “TIPS TO BUY COMMERCIAL REAL ESTATE IN NAVI MUMBAI“