Luxury real estate is an investment class all its own. First of all, high end homebuyers do not behave the same way as the rest of the market. Even in an economic downturn, they continue to demand the best things in life, including in their choice of homes.
Second, there has recently been a rise in “new wealth” around the world, adding to the pool of buyers for luxury homes. Predominantly, millennials and younger members of the Gen X population have received their fortunes either through inheritance or from their own success, mostly in the technology industry.
Taking all this into consideration, it’s always a good idea to add a luxury property or two in your portfolio. To succeed in this dynamic sector, however, you need to keep abreast of the constantly changing fabric of the market and be on the lookout for opportunities everywhere.
Here are a few tips for success in today’s luxury real estate market.
Know what buyers are looking for in a home
With more and more younger buyers entering the market, it’s important to understand what they’re looking for in a home. While there will always be a healthy demand for grand mansions in Atlanta, younger buyers are inclined to look for more than just opulence and acreage.
Among the features they prefer are:
Smart home features – With technology taking over much of the lifestyle today, luxury buyers want a home that offers utmost convenience at the touch of a button. They’re looking to control the lighting, temperature, security, and other home features using only their cell phones or other mobile devices.
Multigenerational lifestyle – Size remains a factor in choosing a property, as luxury homebuyers today have embraced multigenerational living. A household may include elderly or senior members, as well as newborns and toddlers. In addition to spacious living areas, features that cater to different abilities are also welcome.
Location – Luxury homebuyers seek more than a home; they want an entire way of life. While a prestigious address still commands desirability, many high-end buyers today look more at the lifestyle that comes with a home’s location. They may choose to live in a condo in the downtown area for the convenience it offers or buy a waterfront home that gives them access to an active, outdoorsy way of life. No matter the address, luxury buyers want to live close to the best amenities a place has to offer.
Privacy and security – Everyone seeks privacy and security, but high end homebuyers want them in a grand way. This is one reason they continue to be attracted to mansions for sale in Atlanta – the expansive lots, surrounding mature trees, 24-hour security, and exclusive neighborhoods provide isolation and protection from prying eyes.
Rent out the property
Atlanta is one of the fastest growing metros in the United States today, thanks to the remarkable growth in the job market after the recession. According to the latest Census estimate, the metro’s population is expected to increase to around 7.3 million by 2020, which would it make the 6th most populous metropolitan area in the U.S.
With more and more people coming to live here, you can also see a higher demand for housing. Many of the newcomers are under the age of 44, and this is the age group that generally prefers renting over buying. In fact, around 60% of the population in the city of Atlanta are renters, and many are spilling over to the suburbs in search of housing options.
High net worth individuals will only choose to rent luxury properties. They’ll want the same luxe features and amenities, whether in buying and renting a home, so you’re assured of a niche market for your investment.
You may consider long term or short-term rental. Thanks to sites like Airbnb and VRBO, there’s now a strong market for short term rental properties, and this may offer another avenue for profit.
Consider property flipping
You might think property flipping applies only to distressed lower priced homes, but there’s plenty of opportunities in the high-end market, as well. Mansion flipping, as it’s popularly called, entails buying an underpriced luxury property, and renovating and upgrading it to appeal to more discriminating buyers.
To succeed in this kind of investment, you need to find the right home and have the right funding. A good location is paramount, which makes underpriced luxury homes for sale in Georgia perfect candidates. In addition, the property should have a combination of other desirable features, such as the right size, distinct architecture, interesting details or history, and other qualities that high- end home buyers find attractive.
Keep in mind that you will need sizeable capital to renovate a luxury home and equip it with sought-after features and amenities.
Looking to invest in a luxury home in Atlanta? As one of the top Realtors in the area, I can guide you to the property that best suits your investment goals. Call me at 404.550.5113 or email Natalie(dotted)Gregory(at)Compass(dotted)com today.