Tips for Buying Luxury Real Estate

As with any property purchase you are thinking of making there are a few things to consider before putting down any money on a luxury property. Luxury real estate means different things to different people, but typically it is a home or property that is above and beyond the other average options available on the market. When you buy luxury property you pay for what you get- some luxury properties may come with very large houses, lots of land around them, indoor or outdoor pools, or access to private lands on beaches or other open areas. Whatever your plans are for this space you will certainly have enough room to grow, roam, and live in private.

Before you purchase a luxury property you are going to want to have all of your finances in order. In the majority of cases luxury properties are very expensive and the down payment alone will be a good chunk of money.

If you are looking at luxury properties in a specific location look to see if there are any foreclosures nearby. The housing market decline has hit many people hard, and you might find a foreclosed home that would be a better deal than another luxury real estate property would be. Doing research on the local housing market you’d like to potentially purchase property in is a good way to determine what the best real estate deal you can get is. Unfortunately the high rate of foreclosures in some locations can depress the property values of homes nearby, so make sure if you needed to sell this luxury property you would likely have the chance to gain some (if not all) of your money back.

Another tip before purchasing is to make sure the interest rates are favorable. Typically a good interest rate is below 4.2% depending on where you live and the state of the local housing market. If you are considering buying a large plot of land and building your own customized luxury home, look at real estate outside of major metropolitan areas and consult closely with an architect who knows the details of estimated construction costs and city building codes. Building in the boundaries of a major metropolitan area may seem like a good idea, but building away from the city will allow you greater freedom to build the home of your dreams in addition to costing less.

Luxury Real Estate – What Makes it so Different?

As most of the major economies of the world prosper so does the niche market of luxury real estate. It is one of the segments of the world that has shown a quick upward trend in its development. This market aims at the richest economic groups of the world.

Definition of luxury real estate

The definition of luxury real estate differs from place to place and also depends on the views that the property offers. The main criteria is the location of the property. If the property is located on a beach with a view of the ocean in the forefront for example, it most certainly would be classified as luxurious. Though this property may not be very large, due to the location, view and the facilities it provides, it becomes a prized possession.

In America, many homes that are worth more than a million dollars are termed as luxury real estate. Thus, we can say a property in any region that is a cut above the others and costs above the normal range of homes is luxury real estate. All properties having high values in terms of dollar amount are in this category. These properties can be large plots of land or a thousand square foot home. The value mostly depends upon the location of the property, the amenities offered in the home or condos, proximity to hospitals, malls, golf courses, high ways, and other important facilities.

How is luxury real estate different from general real estate?

The price of the general real estate is less compared to the luxury real estate. The cost of one luxury home may have the capacity to purchase two, three or four median priced homes. The clients involved and the real estate agents differ from the median priced properties. When purchasing luxury real estate the process of buying the property takes much longer time than the normal real estate in some cases. It is an expensive decision and requires a lot of thinking before any purchase is made.

Marketing differences in general and luxury real estate

The marketing of most homes are sold in the local market where clients can afford to purchase and reside. The target market for luxury real estate may not be local residents at all. Marketing of such property is done nationally as well as internationally. The media used is also different and more expensive than the local media. The agent has more responsibility when selling luxury property. In Many cases attorneys, trusts, inspections, open houses, professional photography, brochures and presentations are involved with luxury homes and condos. The agent has to be all the more vigilant in all these aspects.