Whether you’re a seasoned investor or someone who is just starting out, real estate is one of the best investment vehicles you can choose.
In the general sense, investing in real estate enables you to generate returns over the long haul through property value appreciation or to earn passive income by renting out the property. In addition, if you know the right place to buy an investment property, you can significantly maximize your earning potential.
But do these principles hold true for a niche market such as luxury real estate? Here are a couple of reasons that will encourage you to invest in luxury properties:
The luxury market continues to thrive despite the COVID-19 pandemic
One reason to bank on luxury properties, especially in 2021, is that the high-end market has proven to be stable even in times of economic uncertainty.
Marketing firm Luxury Portfolio International recently reported that the luxury housing market continues to see strong buyer demand, even though the COVID-19 pandemic remains a major hindrance to normal economic activity.
Amid the global health crisis, homebuyers continue to look for sprawling, spacious properties located far from crowded urban centers. Housing markets with a suburban or rural environment, such as the township of Colts Neck, NJ, offer plenty of space for privacy and social distancing that luxury homebuyers today will find appealing.
There’s more than one type of luxury real estate
Luxury properties come in many forms. Aside from mansions and palatial estate homes, you can invest in luxury condos or apartments and gain from the earning potential of a rental property.
In the right market and under the guidance of a reputable and knowledgeable Realtor, you can also find highly desirable waterfront properties or a sprawling parcel of land that you can modify and use according to your investment goals.
Things to consider when choosing the ideal luxury property to invest in
Property cost and financing options
Do you have enough capital to invest in a luxury property? Are you planning to pay cash or will you need a loan to finance the purchase?
Even for those who can afford to buy multi-million-dollar properties, it’s important to determine just how much you can or are willing to spend on an investment property. This is especially important if you have specific earning targets.
Long-term ownership costs, such as regular upkeep and repair needs, also factor among the key expenses that every aspiring investor should consider.
What makes the property special?
Luxury properties are not only defined by their seven- or eight-figure asking price. Rather, they are distinct opportunities that offer exclusivity and, to some extent, prestige. What experience does your luxury property offer that others cannot?
Location
Aside from the uniqueness of the property, a desirable location can also elevate a property into “luxury” status.
A prime location can be as simple as close proximity to premium community amenities like high-end boutiques or malls, golf courses, and gourmet dining options. In other cases, magnificent views of natural surroundings, such as mountains, rivers, or the ocean add a sense of superiority to a property’s location.
Another essential advantage that the property’s location can offer is a high degree of security and privacy—considerations that are always high on a homebuyer’s list of must-haves.
If you want to explore your investment options in the Colts Neck real estate market, let Realtor Colleen Meyler help you find the best properties and top deals that can bring you the best returns. Call 732.995.5102 now or email your inquiries to ColleenMeyler(at)gmail(dotted)com .