If you’re looking to move into luxury real estate for the first time, you’re sure to be making a wise investment. But make no mistake; the luxury market is a different beast from the traditional real estate market. It has its own rules and standards, and you’ll want to understand it fully before you make any big moves. Here’s what you will need to successfully move into this market.
Secure a luxury–sized mortgage. In order to invest in supersized real estate, you’ll need to be approved for a mortgage just as large, or pay in cash. Talk to your financial advisor or mortgage broker to see exactly how large of a mortgage you qualify for so you can start narrowing down locations and neighborhoods in the price range you’re approved for. Ideally, you’ll want to be approved for a jumbo mortgage, which allows you to exceed standard loan limits. But it requires a higher down payment, a certain income level and a flawless credit history.
Find the most desired location. Location is key when it comes to luxury. High-end buyers expect not only the best amenities in a secure property, but access to the best of the city they’re in. This means you’ll want to invest in property that is close to the best shopping centers, restaurants and entertainment available in the area. Easy transportation, great schools and incredible views also play a big role. All of these things must come together for a property to be truly luxurious.
Find a local luxury real estate agent. Particularly if you’re looking to invest in an area you’ve never lived in yourself, you’ll really want the help of a well-respected local agent who works in high-end real estate. As a local yourself, it’s easy to know where the luxury markets are within your city, but if you’re not as familiar with the area, an agent will be able to not only help you quickly narrow down where you should be looking, but they will have access to luxury properties quickly and have insider information on properties that are unlisted.
Aim for the best amenities possible. If you’re looking to use this property for rental income or a vacation home, you’ll want to make sure the amenities are top of the line, as robust as any good hotel. Luxury renters will come to expect the best of everything, so your property should have custom finishes, access to fitness centers, spa areas and a pool, and all the best in security and smart home tech.