Luxury real estate may be thought by some to be extravagant, but in many cases a well-planned luxury investment can turn out to be a very wise investment. The high price tags attached to luxury properties often mean that they have great views, shopping and attractions nearby, beautiful designs, special interior features, swimming pools, and more. But they also offer the potential for a large return if the property appreciates in value, as many luxury homes do.
When planning a luxury home purchase, you’ll always want to make sure that you’re spending your money wisely on an investment that can offer the potential for a return in the future, whether it’s your main home or a second home. With the right planning you can accomplish this and more.
It’ advisable to meet with a South Florida luxury real estate attorney prior to closing on any luxury deal, as well as an experienced real estate broker, in order to determine whether or not a particular property will be a good choice for you. Below are some other basic tips to consider as you plan your next luxury real estate purchase.
Prepare your investment capital ahead of time
You will need a large amount of capital to begin investing in luxury properties. To get a mortgage for a luxury home you will need to have fantastic credit, a significant down payment, and proof of having a high enough income to cover the payments for this mortgage.
Remember that most luxury properties in South Florida begin at around $1 million at minimum. Prices can exceed well over $10 million depending on the location. A qualified Ft. Lauderdale luxury real estate lawyer can assist you with finding appropriate financing or you can speak with your real estate broker as well.
Types of luxury real estate investments
You’ll also need to decide on the type of luxury real estate investment you want to make. The basic types include flipping, building, buying internationally, or renting out.
Flipping is when you buy a fixer-upper luxury home and make it spectacular before selling it again for a profit as quickly as you can. Building involves starting from the ground up and designing your own custom luxury home. Custom builds get some of the highest ROIs in the industry, though they require a lot of capital and have high risks.
International buying is great if you can find a property within a developing tourism location or a country with real estate-friendly laws. Talk to your attorney for luxury real estate in South Florida about international buying laws before you choose to make any purchases abroad.
Renting out a luxury vacation home can also be lucrative. Condos and vacation homes in the right locations and with a great mix of amenities are highly sought after by vacationers in South Florida.
Mark Schecter at Schecter Law has successfully advised dozens of his clients on luxury real estate investments and deals and assisted with closing, drafting purchase agreements and more. For a consultation or to ask any questions at all, contact Schecter Law today at (954)-779-7009.