It’s a fact that in any economic condition, people opt and are looking for the essence of luxury home investment to consider buying a house. Not only the secured, established, and rich individual of the society has the choice of purchasing a luxurious house.
When you buy luxury real estate, you’re not just shelling out your money on any kind of property. Luxury homes, mansions, and structures carry a distinct weight about them that makes them stand out among the rest of the properties.
They offer the best of both worlds when it comes to aesthetic architectural design and functionality. More and more individuals are turning towards purchasing luxury properties because they are known to elevate status symbols.
Before we go any further, it’s crucial to understand exactly how a luxury property is defined by today’s standards.
First and foremost, luxury properties are not all price tags. While price is a significant factor, it’s by no means the only one. There are a variety of factors at play when deciding what constitutes a luxury investment house.
Overall a great luxury home investment
HNIs and High Net worth Individuals deem the luxury abode houses a great investment opportunity.
The most important reason behind this is that luxury homes are performing assets which means that these assets increase in their value over a period of time. Owning a luxury home for them is like being a secure investment.
What is a Buy Utility and Rent Luxury (BURL)
A common real estate investing rule a savvy real estate investor follows is to pay no more than 100X the monthly rent as the purchase price. In my example, an investor wouldn’t pay more than $900,000 for my new $9,000 a month rental house.
“That said, it’s IMPOSSIBLE to follow this real estate investing rule when buying in expensive cities such as New York, San Diego, LA, and San Francisco. Even finding properties priced at 150X monthly rent is extremely difficult to find.” – Financial Samurai
Having a luxurious house might make you exert a lot of effort to thrive and be secure. The community is high maintenance for sure.
It can be trained outside the building or other types of installations like CCTV cameras. The rich sections of society would always prefer a home that has a high level of security for them and their family.
Optimal Investment Lifestyle Combo
Of course, real estate is a very personal situation for each individual. People live where they want to live mainly due to their families, friends, and jobs. Not everything is about money.
But given this is an article about ways to optimize our finances, a savvy real estate investor should seriously consider my real estate investing rule advice of Renting Luxury, Buying Utility. This section is mainly from Financial Samurai.
A modern fit lifestyle
The privilege of having a spacious and flexible space is that this could easily be a modern aesthetic and the people occupying the space!
From electronic security systems to remote-controlled window shutters, everything adds to the lifestyle wanted by the rich and the influential. So for those of you all who desire an ultra-modern lifestyle, buying a luxurious house is the best decision!
At the end of the day, what we need to remember is that there are thousands who dream of owning a luxury villa or apartment but not everybody can have it. Owning one luxury home investment by taking heavy loans and regretting it later serves no purpose.
But if you do get a chance to purchase a luxury property, then you wouldn’t want to pass up this opportunity because it’s definitely one of the better investments you’ll ever make in life. With its low-risk and flexible investment nature, luxury real estate allows you to diversify your portfolio.