Investing in real estate is a great way to give yourself a safety net for the future and bring some extra money in. There are a lot of different areas of real estate to consider and they each have their pros and cons. Luxury real estate is an area that people don’t always think about, but you can make some significant returns if you get it right. However, tenants and buyers for luxury properties have very high standards so you need to make sure that you invest in the right properties and renovate them in the right way. The way that you advertise properties makes a big difference too. If you think that a luxury real estate investment is the right choice for you, here are some key tips for success.
Secure A Large Mortgage
As you’d expect, a luxury property will cost more than a standard home or apartment. If you want to attract high-end tenants, you can’t cut any corners. People often make the mistake of trying to invest in a luxury property when they can’t really afford it. This means they make a lot of sacrifices and the property they buy and renovate doesn’t meet the standards of luxury clients. So, before you make any decisions, take a look at your finances and consider how much you can realistically afford for a down payment. If you cannot secure a large mortgage, you should reconsider your position and think about investing in a standard residential property instead.
Find The Right Location
You already know that location is crucial when buying real estate, but people don’t always know how to find the best locations for a luxury property. Proximity to city centres is important because tenants don’t want a long commute. Luxury tenants are more likely to eat out more often, so being close to a lot of restaurants and bars is good as well. However, don’t overlook the importance of the usual things, like public transport links and schools.
Make Luxury Additions During The Renovation
If you want your luxury property to be attractive to renters, you need to go above and beyond where amenities and extra features are concerned. The people you are trying to rent to are used to a high standard of living, so things that you consider to be the height of luxury are mundane and often expected in these properties. Look for hot tubs for sale and get one installed in the back garden, for example. In the kitchen, invest in state-of-the-art additions like convection hobs and smart appliances. If you are investing in an apartment complex, swimming pools, spa complexes and gyms are all expected.
Focus On Security
Security is important for all tenants, but it’s always a primary concern for people in luxury properties. It’s important from your end because you’re investing in an expensive property and you don’t want it to be damaged. The tenants are also likely to have a lot of expensive things in the house, so burglaries are a big concern for them. So, make sure that you invest in heavy duty locks for the doors and windows, security lights, and maybe even a CCTV system. Smart gadgets like video doorbells are a welcome addition too.
Add Office Space
A lot of the people that rent luxury properties are working professionals that dedicate a lot of time to their careers. Working practices are changing a lot and more people are working from home. Office space is a valuable addition to luxury properties that can help set you apart from other properties in the area. If you don’t have too much space, you should consider a basement or loft conversion, which can then be used as an office space.
Create A Turnkey Property
People that live busy lives don’t want to mess around decorating a property or buying furniture and appliances, so it’s important that you create a turnkey property. Often, a lot of residential rental properties come unfurnished, allowing the tenant to make their own decision about how the space is decorated. Many tenants prefer this setup, but that isn’t the case with luxury properties. People want to be able to move in immediately without having to do anything else to the place. Make sure that you invest in high-quality furniture and appliances too, so you can meet those high standards. Investing in luxury properties is a great investment strategy, but it can be difficult to get right. But if you keep these tips in mind, you can maximize your return on investment.