When we are planning to invest in a real estate property we probably want to make the best we can with our money. In many cases investing in luxury properties will be the best choice if we are seeking the best investment value.
First of all we should define what a luxury property is, as luxury is quite a subjective term. Remember that a high price doesn’t assure you are buying a high-end property. Anyway, we can determine some features that characterize a luxury property. A luxury property must be unique and exclusive, no matter the reasons, it must offer something especially desirable so that people are ready to pay a higher amount of money for it. This can be due to its design, location, amenities, privacy, security…
But why are luxury properties so attractive for investors? Here you have the 3 main reasons:
HIGHER INVESTMENT VALUE
This is probably the most important reason to invest in a luxury real estate property. As properties are an asset that rises in value at every instant, at the same time as they are a “performing asset”, which means that they serve a practical purpose even as they gain in value.
Moreover luxury homes have always shown a high demand, so we can tell that this kind of real estate properties are a great investment opportunity that guarantee multiplied returns in the future.
SPECIFIC NICHE MARKET
Why do this kind of properties have always a high demand? That’s due to its specific niche market, targeted at wealthy profiles such as high-profile businessmen, corporate executives, industrialist and other kind of people who are relatively less impacted by the economic and market changes.
That’s the reason why the high demand on this kind of products remains active even in time of economic crisis.
Moreover, luxury properties are a great chance for investing internationally and getting revenues and advantages that you won’t be able to find in the domestic market. You can always find exotic locations where you won’t have to pay annual property taxes nor capital gains taxes on transferred property.
Investing in a luxury property in Barcelona for example, as well as in the rest of Spain, offers an especial advantage since the approval of the new law for entrepreneurs. This law gives automatically the Spanish residence permit to all those foreign investors who invest over half a million euros in Spanish properties.
Moreover, if we take into account the amount of tourists that Spain receives annually we will be able to understand how profitable can a luxury property be on many locations of this country. As you will also be able to rent it as a high-end vacation property, will which notably increase you revenues on a short term.
So as you see investing in luxury properties can offer you a wide range of advantages. Can you think of any other we have missed? Share it with us!