Investing in luxury property is like re-learning the rules of real estate all over again. It isn’t the same as buying low-risk, high-demand properties that you’re able to quickly get rid of if you end up realising real estate isn’t for you. It’s wise to have some experience of real estate before jumping into a commitment like luxury apartments. However, the bigger the risk, the bigger the gain. So, what do you need to know before making that huge step?
Location is Just as Important
As with lower risk properties, location is everything when it comes to investing in luxury apartments. So, the first thing you need to think about is the type of people you’ll sell/rent to. The majority of people living in luxury apartments are business men and women, some of whom are living there permanently and some who use the space while travelling for business. Therefore, your apartments need to be close to local businesses. They should also be easily accessible. Very few people buy a luxury home without wanting to show it off.
If you’re investing in luxury apartments, you’ll need to do everything within your power to make sure they’re secure. The people living in this kind of accommodation are likely to have valuable belongings and they’ll want the added peace of mind of knowing that their homes are being protected. The building should have CCTV, a security guard should be in the building 24/7 and each occupier should have a direct line to the reception/security desk. Buyers will be more inclined to invest if they know the building owner has their best interests in mind.
Just because you’ve bought into luxury apartments, it doesn’t mean you won’t have any competition. What makes your apartments stand out? If you’re hoping to attract buyers/renters who will stay for the long run, you’ll need to offer something unseen elsewhere. For example, take a look at the work done by Joe Nahas and Jamie Durie. They’ve created something truly magnificent for the owners of luxury apartments. Could you provide a garden? What about a private gym?
What makes a luxury apartment stand out from the rest? If you’re still in the browsing stage and you haven’t made your mind up on which apartment or apartment complex you want to invest in, think height. The one thing that makes any space stand out from the crowd is ceiling height. Luxury apartments often have a space of least twelve feet between floor and ceiling. So, if you’re faced with a difficult choice, let that be the decider. Everything else is fixable.
Sufficient Parking and Amenities
If your occupiers have to fight for parking spaces or use of the buildings amenities, they’re unlikely to stay for long. As an investor, you need to be sure there’s enough to go around. You need to think about how many people you want to house and what those people will need for the building and apartments to remain in the luxury category.
If you want to invest in luxury real estate, you have to be a perfectionist.