Have you ever considered investing in luxury real estate? Whether you’re a seasoned investor or completely new to investing, there are plenty of reasons to look into buying luxury properties. For example, the returns can be high or you might want to live in one of your properties.
If you’ve always been curious about why people invest in luxury properties, here are four of the top reasons.
1. It’s not always extra work
You might be wondering if you should invest in luxury real estate because of the work involved. While every investment requires work, there’s no reason a luxury property should take more work than any other property. The key is to set yourself up with the right systems and structures to manage your responsibilities.
Most investors hire a property management company, and there are companies that specialize in luxury property management. For example, Crown Luxury specializes in managing luxury properties so investors don’t have to handle any of the usual landlord duties.
For instance, a property management company will do the following for you:
- Property inspections
- Move-out and move-in inspections
- Maintenance and repairs
- Fill vacancies
- Market vacancies
- Process tenant applications
- Handle reasonable modification/accommodation requests
- Collect rent
- Serve legal notices
- Handle 24/7 emergency maintenance calls
- And more
Some luxury property management companies will also manage all the bills and various services associated with a property. Having them handle bills like your mortgage, property taxes, insurance, and landscaping services are often options when you sign up for property management services.
If status is important to you, owning luxury property can help you achieve your goals. Owning property is already somewhat of a status symbol, but owning luxury property is even better. For example, it’s a big deal to own a beachfront condo or a penthouse in an affluent area.
Millennials are especially interested in property as a status symbol, and many have chosen to buy an expensive property as their first home. For those who work in tech, like many Silicon Valley workers, buying a luxury home is no big deal.
Just like expensive cars, owning a luxury home tells the world that you’ve made it. You’ve achieved your financial goals, and have something to show for all your hard work.
Luxury and comfort go together, according to one of the world’s best interior designers. Just thinking about owning a luxury home means picturing lavish décor, solid wood furnishings, and everything else grand. When you own a luxury home, you’re going to be comfortable and that’s the point.
Are you comfortable where you currently live? Do you wish you had more luxury in your life? Perhaps you’d like a bigger, more comfortable bed, or you’d like some fancy upholstered furniture? Maybe some high-end décor to make you really feel like you’re living a luxurious life?
Owning a luxury home is a great way to add some serious comfort to your life. It’s not just about the house, but the furnishings you put inside and how you decorate. For example, it’s nice to have large rooms, but a large room is only the foundation for comfort. You still get to choose your furnishings and décor.
You can make a larger space more comfortable than a small space, so if comfort matters, consider buying a luxury property to make your dreams reality.
4. Stable long-term rental income
Any rental property you own will generate long-term income, but luxury property can generate significant returns. Generally speaking, your tenants will be financially stable and will be unlikely to miss their rent payments or pay rent late. If they do pay late or miss a payment, it will likely be caused by unexpected circumstances.
Renting to wealthy people with a stable income will ease some of the stress associated with being a landlord. For instance, when renters are stressed out about money, they don’t always respond well to changing lease terms. Wealthy renters are less likely to already be stressed and will be more likely to respond to changes with respect and consideration.
This doesn’t mean wealthy renters are perfect, and not all tenants are stressed about money. It just means that many of the usual points of conflict between landlords and tenants won’t be an issue with wealthy renters.
Don’t hesitate to go for luxury
If you’re already thinking about owning luxury property, don’t hesitate to pursue your goal. Luxury investments are worthwhile, whether you’re after comfort, status, or you just want to add some amazing properties to your portfolio.