Looking for a new way to invest your money? Now is a great time to consider luxury property. With prices low and opportunities high, there is plenty of choice available wherever you’re looking to buy, and from second homes to holiday rentals, you’re likely to find a great deal that will set you up for the future.
Those who invest in luxury property tend to fall into one of two categories, either they intend to live in their new purchase, or are looking to make an additional stream of income whilst securing an asset that can give them leverage later on. Whichever one you fall into, it’s important to arm yourself with the right knowledge before you part with your cash – the smallest of issues in luxury real estate tend to be magnified by property value, which could make mistakes costly.
Buying a luxury property should be all about the excitement, and with a few simple tips, it can be an enjoyable experience with none of the stress that can often be associated with buying a home.
Get a mortgage agreement in principle
If you’ve already got your eye on a particular property you’re eager to make your own, then the first thing to do is to apply for an agreement in principle for your mortgage. Doing so will enable you to make an offer with confidence and provide you with the leverage you need for negotiation.
Be sure to consult with a mortgage broker who specialises in securing high-value mortgages for clients, as not all lenders will be able to cater to your needs.
Find an agent
When it comes to luxury real estate, it’s important to find the right agent for your needs. Many estate agents specialise in high-value properties and will be in a better position to find you what you’re looking for, so look for one with a solid track record, excellent reputation and access to the very best listings on the market. A specialist in luxury properties will also be able to identify any potential issues early on and will help you to spot the best deals.
Location, location, location
It’s easy to fall in love with a property without taking the time to consider the outside factors that could affect your investment long-term – but doing so could prove to be a costly mistake. Take the time to explore the area in which you are looking to buy, and investigate the value of other properties nearby. Ultimately, you’ll want to invest in a property in an area where there is an upward trend in sale prices, so be sure to get a thorough market analysis and find out how much you should expect to pay for a luxury property in your particular location of choice.
Get the surveyors in
As with any property purchase, it’s vital to get a chartered surveyor in to assess the object of your desire, as they will be able to identify any potential issues beforehand that might impact either the purchase or the price you are willing to pay.
While, on occasion, some issues can make a potential investment a write-off, others can be easily remedied with the right help. Experts in locating and treating damp, such as London property maintenance firm Aspect, can help with common issues with infiltration, so if there is a minor problem such as this then don’t let it put you off your dream purchase.
Think it over
The luxury property market moves slowly, with supply often outweighing demand, so don’t feel rushed to make a decision if you are in any doubt. Taking a more relaxed approach will give you more negotiation power, which could ultimately result in a better deal.
The final word
Armed with these simple tips, luxury property investment can be an enjoyable and fruitful experience that will provide you with a valuable nest-egg for the future – and in many cases, an additional stream of rental income, too. Let’s face it – it’s more exciting than squirreling your money away in a low-interest savings account, and if you have a substantial sum of money to invest then with the right choice, you can expect to see significant growth.
Disclaimer: Investing money carries risk, do so at your own risk and we advise people to never invest more money than they can afford to lose and to seek professional advice before doing so.