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Tips for Buying A Luxury Investment Home

Buying a luxury home is a little different from buying the average tract house. Obviously the expense itself is a large concern, but more and more luxury buyers are using the home as an additional asset in their overall investment portfolio.

In the 1950s the dream was to find a home and pay off the mortgage, now many financial advisors recommend using the mortgage as a way to not only offset income taxes but to leverage capital for other investments. For those just entering the luxury home market, it’s important to know what to look for so that the home not only provides a pleasant living environment, but also appreciates in value.

First and foremost… location. Cities, communities, neighborhoods are all very important factors in purchasing a luxury home. More than many home purchases, finding the right real estate agent can make a huge difference. Your agent should be able to direct you to homes in areas with appreciating value and know the reasons why.

Communities and neighborhoods are also very important. Many luxury buyers look for gated communities; security and privacy are important aspects to the home’s location. If you are looking in a location which offers views, such as a beach town or city, then you also want to have a nice view. Remember that if this is intended to be used as a part of your financial portfolio, then increasing value is a critical part of the home purchase.

There are common amenities seen in most luxury homes:

• Upgraded kitchens and bathrooms

• High ceilings

• Open floor plans

• Specialty rooms, such as library, media, gym, bonus or wine sellers

• Larger garages or parking for more than 3 cars

• Nice outdoor entertaining areas

• Reputation of neighborhood

Get a complete inspection done on the property. Spending a few hundred dollars on this expense you can save thousands in problems that you cannot see. By, getting a comprehensive full inspection you can rest assured that you know everything that is wrong with the luxury property. In the contact for the luxury house you need to make sure that you have provisions to have a complete inspection preformed, and if the inspection finds problems that are going to cost more money that you are willing to invest you can get out of the contract with no penalties. It’s commonplace to inspect suits, dresses, trousers or shoes before buying them. People instinctively know they need to try on clothing to be sure they fit, feel comfortable and are attractive on them. Isn’t it even more important to inspect a home investment before you purchase it?

Luxury homes in the United States have become a great investment tool. The United States luxury home market is still more affordable than most countries. As this trend continues, the value of these homes will rise accordingly. Foreign buyers are flooding our luxury home market with cash. Purchasing a home for yourself in this environment might not only provide you with a lovely home but could appreciate in value significantly over the next few years. A luxury home purchase is a great way to diversify your financial portfolio.

What You Can Expect From A Luxury Home

Most people define luxury majorly in terms of price but there is so much more to luxury than just the amount of money you spend. It is very hard to define luxury homes in an exact way because this is something made up of several factors. If you are looking for a posh home to buy, there are some general qualities expected within it and they are what together create the luxury that is the home. Below are some of the features that such homes tend to have in common.

Prime location

Luxury homes tend to in coveted locations like on the beach or overlooking a sea for that matter. Others are in secluded mountainous areas or atop one while others may be overlooking a beautiful city. It all depends on whether you wish to have your home in the city or the country but generally they will be prime located attracting high end buyers for that reason.

High price

Like mentioned earlier price does interpret luxury and most homes under this category will be highly priced. Different areas attract different prices but you cannot expect to pay anything lower than half a million when looking for a luxurious home to and the prices can go way up into tens of millions depending on the magnitude of the property.

Exquisite amenities

Luxury home carry the most exquisite amenities in that you can conduct your life right from your home without needing other services out of it. Most will have a gym, spa, swimming pool, Jacuzzis, arcade rooms, movie theaters and even decontamination rooms. Some luxury homes come with outrageous amenities and they are what attract the buyers because they make the property unique, self-sufficient and convenient in every sense. They are some of the factors commanding prices apart from location.

Premier quality

Luxury homes have everything selected with care from the appliances, finishes, design and even materials used for construction and décor. They are all cut above standards so you the buyer can have something to pride yourself in. Hardwoods, marbles, crystals and Venetian plasters among others are common components in the homes.

Exclusivity

High end buyers including high profile individuals and celebrities treat their homes as serene refuges hence privacy is given center stage in luxury homes. If the home is not located in a secluded land large in size, then privacy will be achieved using foliage covers, high walls and tightly gated entrances sometimes complete with guards to keep the peace.

Luxury homes without doubt have so much to offer to buyers; as long as you can buy it, you can enjoy it. Some buyers actually look for homes that have interesting stories or histories behind them to give them that edge that everyone yearns for. Whatever the choice you make, you can definitely expect much more from a luxury property than a standard normal home. The choices are numerous so finding your ideal luxury home should not be too much of a task.

Property Investment Loans and the Luxury Home Market Still Suffering

Both the luxury homes and the investment property market are still feeling the pinch of the credit crisis, with loans hard to come by and substantial excess inventory. The process of arranging loans to buy property has been drastically affected since the Lehman Brothers crash, and most lenders have increased their lending criteria by a substantial margin.

It is unlikely that a borrower will be able to arrange financing without at least a 25% deposit available. When one takes into consideration the increases in charges and fees to arrange a loan, realistically this needs to be closer to 30%. Until such times as the commercial property losses accrued and coming due over the next 18 months have been declared, lending is going to remain restricted and the markets will continue to devalue.

Some markets may recover sooner than others, but the problem of overbuilding – particularly in the “luxury” segment is likely to continue to cause a problem for some time. With the end of the 125% “jumbo loans,” and a return to rational lending, one has to wonder how much of the current inventory is going to be unsalable.

It is hard to accurately predict where the turn around point will be – and there will be one, but many are calling that point and have been calling it almost since the downturn began. But – I feel this problem is still unresolved and this one is too big to “hype,” our way out of. The underlying fundamentals: lack of credit, upcoming banking losses in the commercial property sector, and rising unemployment have not changed.

5 Features Your Luxury Home Should Have

For those with a larger budget to spend on their property, investing in a luxury home can be a highly attractive option. Featuring amenities that other properties simply do not have, living in one of these houses or condos can provide an unbeatable level of peace, comfort and total indulgence.

When looking for a property that fits the “luxury” label, however, there are some specific features and qualities that you should look out for. These will ensure that you get the most out of your budget and find a home that you will love spending time in.

Firstly, any home with a “luxury” tag should come with great views; this is non-negotiable. Although many regular properties will have nice views of parks, gardens or even the sea or a lake, many also find themselves vi’s-à-vis neighbouring properties, busy roads, car parks and other not-so-pleasant scenery.

It goes without saying, therefore, that if you are paying a premium for luxury homes, there should be a vista to match. Many property developers will ensure that this is part of your package, with every building in the luxury property designed for extensive views over a variety of scenic areas – without looking into your neighbours’ windows.

A second feature that all luxury homes should have is easy access to local amenities. Again, the luxury label should mean that you are getting the best of everything, and this is why these condos or houses come at a premium. Do not settle, therefore, on a so-called luxury property which is inconvenient for you in any way, shape or form.

It is indeed possible to find these kinds of properties in downtown areas, near major parks, near quality schools and universities and within easy reach of public transport. When you are searching for top-of-the-range property, you should expect that what you are investing in is prime real estate in one of the best and most convenient areas of town.

Thirdly, your new home should offer you an excellent level of security. This can be in the form of an integrated security system throughout the property, or even a manned security post in the building, in order to ensure that residents feel safe and protected at all times. Security should not only extend to the condos or house, however.

If you have a vehicle, ensure that the luxury homes you are looking at offer secure – and preferably underground or enclosed – parking, as this will offer optimal protection of your vehicles. As luxury properties are potentially a target for crime, high levels of security are essential.

A fourth thing that you should demand from your home is all the latest and highest quality fittings, including triple-glazed windows, electrics, plumbing, heating and insulation. If you are splurging on buying your new home, the last thing you want is to end up spending on fixing faulty wiring or heating in a property that always seems to be cold.

As well as the looks of your home, it should also be highly functional. Make sure that the property developer has put everything in place so you can enjoy an unparalleled level of comfort and convenience in your new condo or house.

Lastly, all luxury homes should come with an exceptional standard of finish, whether this is in tiling,painting, parquet flooring, bathroom and kitchen furnishings or light fittings. For a property to truly deserve its luxury label, property developers should not have skimped in any of these areas, instead only choosing the most gorgeous and highly functional fittings.

When thinking of buying such a home, check with the property developer or seller who designed the home, which fittings were chosen and why, and where they were bought from. In new builds, you may also have the opportunity to add your own selection of finishes during construction, which is certainly one alternative way of getting a luxury finish that you are sure to love.