Things to Consider Before Investing in Luxury Real Estate in the Sunshine State
What To Consider Before Investing In Luxury Real Estate
It’s no secret that the booming Florida economy is fuelling an attractive real estate market. Whether you’re relocating for work or investing in a second home on the beach, now is a great time to talk to a South Florida luxury residential real estate attorney about investing in the perfect home.
South Florida is prime for long-term investments, especially in the luxury real estate market, as prices appear to be stabilizing. Luxury real estate are typically safe assets that aren’t subject to the same risks of other investments – a worthwhile addition to your portfolio.
Financing Your Home
Depending on mortgage rates and the initial down payment, it can be extremely expensive to own a luxury home – not to mention taxes and maintenance fees. Consider your financing options before signing the dotted line. If you’re not sure where to start and don’t need the opulence of higher-end properties, you may want to consider the lower end of luxury South Florida real estate, which falls between one and three million.
Your – and Future Buyers’ – Optimal Location
Location is important with any home purchase, but particularly so when investing in luxury real estate. Luxury real estate isn’t just about the house – it’s about the neighborhood, amenities, and proximity to the ocean.
Before diving into a major investment, ensure the property is near high-end shopping, dining, and top schools. Is it a waterfront property? Is there a golf course nearby? Are the neighboring houses equally stunning? Choose the amenities that are important to you and your family, and make sure the house checks off the right boxes. This is also important when considering resale value should you choose to sell down the line.
Property Purpose
These days, lots of investors are using a South Florida luxury residential real estate attorney to help them buy property to rent, flip – you name it. But is the luxury real estate segment the right market for commercial purchases?
It can be if it’s small enough and in a prime location. However, it’s much more difficult to turn a 10-bedroom home into a vacation rental. Most people simply don’t need that much space – especially while on vacation.
It’s equally challenging to turn a profit when flipping a luxury home. Combine the home purchase and the remodel investment, and you’re looking at a pretty high ticket price. This can be a tough sell.
Get Professional Help
If you’re considering a major renovation or expansion, your Fort Lauderdale real estate lawyer can raise any legal issues – zoning regulations, construction permits, and historical significance, among others – that may arise with a high-value home. Give us a call today at (954) 779-7009 to explore Florida’s luxury home market.
