When it comes to property investment, there are many choices you will have to make. However, the most important is the one that will decide the entire ethos you then proceed on: what type of buyer you’re going to target.
There are pros and cons for each and every type of buyer. If you’re looking to sell to families, then you have a huge number of houses to choose from – but you’ll also find yourself up against some stiff competition. If your target is young professionals, then you’re not going to be short for tenants – but they might not have the disposable income to reach the top rent level you hope to achieve.
That leaves the luxury market. The pros here are obvious; your returns will be more considerable, and you’ll be able to sell on at a profit when the time comes. The only real downside to this end of the market is whether or not you can afford to enter it.
If you can but have never dabbled in this side of the market before, then you should know that those at the high-end of the price bracket have very discerning tastes. You’d be wise to work with established developers like M Development when it comes to targeting properties, as well as keeping these golden considerations in the back of your mind…
Location always matters when it comes to property, of course – but there is an extra edge when you’re in the luxury section. The people who are likely to want to rent or buy at the top end are far more discerning about location. The location doesn’t just have to be good on all the usual fronts, such as transport connections and nearby properties; it also has to be good in terms of the cachet that it offers.
You can just buy an expensive house and then target the luxury market, but for the most part it’s the amenities that make the difference for these buyers. You’re far more likely to have success if you look for developments that involve on-site extras, such as gyms, swimming pools, and anything else that makes life easier for everyone involved. When people are paying the top amount of money, they want to ensure they’re going to be able to get something in return.
3) “Good Enough” Isn’t Enough
When you enter this sector, then you have to delete the words ‘good enough’ from your vocabulary. When it comes to maintenance, decor, or the furniture you use, you now have to commit to always striving for the absolute best. This is going to up your costs considerably. It’s important to keep this in mind when looking at the price you can afford; it’s not just the property you buy that is going to be a strain on your wallet. Plan for this in your future budgeting or you might end up with the right building, but not the finances to maintain it as might be expected.
If you get the above right, then the luxury market offers you the chance to make plenty of money and never be short of buyers. Good luck!