Investing in a new home is an exciting venture and if it’s a luxury home, it becomes a welcome addition to your investment portfolio. Before you buy, what should you look for? When it comes to luxury homes, consider the following:
- Identify your purpose
Determining why you are making this investment defines the future of the property and the next steps you have to take. This includes financing, renovating, renting, reselling, or living in it.
Are you looking for a home you want to move into as soon as possible? Will this be the future home of your family? Or a luxury retirement home? Then, the neighborhood is key.
Or are you more interested in turning it into a rental for tourists? Perhaps developing it into an Airbnb? Then, let form follow function. What home design trends are appropriate for the property’s intended use? Do you hope to attract short-term stays or, say, longer-term digital nomads? Consider the location of the luxury property and tourist traffic.
Your answers to the questions above will determine if the property matches your purpose. And with the quantity of luxury homes to choose from, it can be an overwhelming experience. Therefore, let purpose guide you!
- Be creative with financing
You might have the resources to purchase your new luxury investment debt-free by paying for it in cash. However, it’s also fun to be creative with financing and explore your options.
Short-term loans are great for luxury properties you intend to flip. You get to purchase a property, renovate it, and sell it for a profit in a space of several weeks. Short-term loans may get approved faster than traditional loans, but interests can be higher too. Shop around to compare.
Negotiate the price as well. If you can do comps, analyze market trends, see how local real estate is doing, and stick to a hard budget, then you might have a flair for flipping homes. If you need to get that best deal and the best value for your investment, consult with experienced local Realtors!
- Explore the neighborhood
A luxury property with the best interiors, equipped with new technologies and located in the right neighborhood is a real estate investor dream. So it’s important to get to know the neighborhood the house is in before making any purchasing decisions.
If you are looking to live in the house with your family, how convenient is the neighborhood to schools, parks, and other amenities? Is the community gated or close-knit?
Are there enough open spaces for the kids to run around in? Are there great places to dine and relax in, markets for fresh produce, and commercial centers, hospitals, and recreational facilities to answer your specific needs?
- Future-proof your property
Besides getting to know the neighborhood, also inquire about the community’s development plans. What’s in the pipeline? How will projects impact the qualities you like best in your house?
Getting this information allows you to make the best decisions regarding your target luxury home.
Luxury homes are a brilliant investment. They appreciate over time and can be a source of generational wealth. They can also generate passive income. It also provides you with the freedom to design a space that perfectly fits the lifestyle that you desire in a state like Massachusetts.
If you are looking for luxury homes in Weston or around Cambridge, MA, get in touch with Massachusetts luxury home specialist, Seydyss Barreto. Call Seydyss at 978.590.8918 or contact her here to get expert property investment tips on acquiring luxury homes in Cambridge, MA and nearby areas.