What gives your luxury real estate long-term value?
This is one of the most important things to consider when investing in luxury real estate and equally as essential when looking at its long-term value. As important as it is to discuss the benefits of a location, it’s just as vital to discuss the things that cannot be changed about the location. For instance, you can add on certain amenities or incorporate high-end appliances, but you cannot change the fact that there is only a partial ocean view or that the transportation options are not ideal.
If your goal for this high-end property is to attract young families, then investing in properties that have high-rated schools would be important. If you’re hoping to rent the property out for vacationers, a property that is relatively short distances to big events or beaches will bring in more profit.
In luxury real estate, having the best quality and unique amenities available can help set you apart from other properties and will make a difference when it comes to long-term value. Amenities such as having an open floor plan, high-tech smart home options, and long driveways or high fences for optimal privacy are seen as essential to many luxury home buyers. Studies show that properties with outdoor kitchens and professional-grade appliances
sell 5.3% more than those without.
It’s important to pay attention to the trends when deciding what amenities you may want to add to your home or which ones you may want to eliminate. For instance, over the last few years, having a home office has become essential to many home buyers. Being able to use high-tech home systems such as smart lights, temperature control, and security options is more important to this generation of buyers than in the past. Wine cellars, private gyms, and entertainment rooms are also seen as vital amenities to have, and their omission can have luxury buyers looking elsewhere.
Remodeling to keep up with trends
Remodeling is a great way to be able to keep up with fast-moving trends to keep your luxury real estate in the game. It can be vital to consider the next generation of buyers when thinking of the best remodels to explore. Future home buyers are more focused on eco-friendly, sustainable spaces. Environmentally friendly choices can be as simple as including energy-efficient appliances. It might be the deciding factor for a home buyer to submit a bit.
These remodels do not need to be elaborate, either. Minor bathroom or kitchen remodels
have been seen to recover 60% and 72% at resale. Updating the kitchen backsplash, upgrading the tub or shower, and updating the cabinets or countertops can increase your home's resale value and set you apart from the crowd.
More land means more room for development
When investing in luxury real estate, considering your land space can be important to reflect upon. When considering the long-term value of your property, curb appeal is vital because it’s the first thing your potential buyers will see. Think about what would draw you into the property from what you can see in the surrounding environment.
Being unique in this aspect can be eye-catching, such as one of a kind shaped swimming pool or an outdoor kitchen. A garden that includes vibrant native flowers can also help to increase your long-term value.
Reasons to Invest in luxury real estate
In a recent survey focusing on over 2,000 U.S based high-net-worth consumers, over 80% of them agreed that real estate is the safest investment opportunity
, with 77% of them currently owning at least one investment property. Whether deciding to flip a high-end property like a mansion, invest internationally, or buy a luxury vacation rental, investing in luxury real estate is one of the best ways to protect your wealth from stock market crashes or industry problems, which can keep the long-term value steady.
Create diversity in your portfolio
Many experts agree that by creating a diverse portfolio of investments, you avoid putting everything into one option and potentially losing everything all at once. By adding luxury real estate to your investment portfolio, you can survive the volatile nature of other markets, such as stocks, and know that the long-term value of your property will not be as affected.
According to a study by Money and Family, about 68% of those who invest in real estate are planning to pass it on to their heirs. However, when deciding to do this, it is important to make sure that the persons inheriting these luxury properties are prepared to do so. You will want to make sure that they’re going to be capable of handling the mortgage, the upkeep, and potential repairs. Overall, many believe that being able to pass down their financial values is important, and this is an excellent way to do so.
Overall financial advantages
While market prices tend to fluctuate when the economy does, luxury real estate is more stable, which will help with the long-term value as much as the upfront costs. Whether you’re deciding to invest in luxury real estate as a new home for yourself, to earn rental income, or make a profit from flipping a property, the financial advantages of investing in luxury real estate are endless.
Hoboken, New Jersey, in Hudson County, is a historically rich gem of luxury real estate. Running along the banks of the Hudson River, close to New York City and defined by its unique character, Hoboken Luxury homes, from brownstones, condominiums, and penthouses, attract high-end buyers and renters looking to embrace the lively, urban oasis that is Northern New Jersey.
and the outstanding members of Team Francesco
are ready and waiting for the honor to join your journey to finding the best luxury real estate for you. With over 20 years of experience, Team Francesco will utilize their client-oriented and results-driven work ethic and unparalleled knowledge to find the most desirable luxury homes for sale in Hoboken
and all of Northern New Jersey to fit your needs. Contact them today
to get started!