So you want to flip like the pros maybe you have seen or heard of celebrities like Ellen DeGeneres, Jennifer Aniston, or Jeremy Renner making a fortune doing so why not you? Well first off they have deep pockets, have the connections/clientele to attract the right buyer, they are doing it in the best luxury home markets, and most importantly they know what they are doing.
Investing in luxury real estate is all about thinking big when it comes to this form of wealth-building. As an investor in luxury real estate, you can enjoy your property as a landlord, resident, seasonal visitor, or builder. Let’s start by saying Luxury real estate is actually not about a high price tag alone. Luxury Real Estate is better defined as property that is valued because it offers to be desirable, exclusive, and even unique advantages to the buyer. Affluent consumers are willing to pay premium prices if the product is clearly superior.
Buyers who can afford luxury housing are looking for features like:
- Location.Location.Location…Proximity to high end shops, restaurants, theaters, and upscale businesses.
- Because we all think alike! Proximity to wealthy neighbors; or alternatively, privacy, even to the point of seclusion
- Natural beauty. The property could be located in a beautiful environment or offer a view of a beautiful of a golf course, City, or mountainside.
- Beautiful interiors: custom architecture and design, detailed work, opulent finishes.
- Traditional amenities like a huge master suite, a resort style backyard including an expansive pool, and a chef’s kitchen. (All areas of gathering)
- Exotic amenities like temperature controlled wine-cellars, car lifts, and home automation.
- Space, lots of space – provide an average number of 4 beds/baths, and come to an average size of about 4,108 square feet.
How to Invest in Luxury Real Estate
While, of course, there are many ways to invest in luxury real estate, there are at least three proven investment models: flipping a mansion or luxury home, Developing a luxury home or mansion, or buying a luxury condo.
Flipping a Mansion
You can also start flipping mansions like Ellen DeGeneres, Jennifer Aniston, Jeremy Renner if you have the money and looking to score big. Contrary to popular belief it is no different than the more familiar idea of house flipping, except that it costs more to remodel and the profit margin is much higher. The Mansion, however, has to have the right mix of architecture, neighborhood, amenities, and landscape to appeal to affluent buyers.
Flipping a Luxury Home
Same motto as flipping a mansion just price much much less to buy, fix, and profit. Click Here to see the perfect property for this.
Developing a Mansion or Luxury Home: Understand what you are getting into, do your due diligence beforehand. Check zoning, setbacks, land soil, find out what can be developed, size, construction & architecture cost, property values, etc. Unlike a fix n flip that can take months – developing can take years + years to sell depending on price point. In Arizona I have an 8-10 rule. Buy the property or land for $800,000-$1,000,000, develop a luxury home or mansion for $800,000 – $1,000,000, and sell for $800,000 – $1,000,000 plus. Areas of Arcadia, Paradise Valley, Scottsdale, and Phoenix work well for this concept and have below market properties or land that can be purchased. Remember to have the right mix of architecture, neighborhood, and landscape to appeal to affluent buyers.
Buying a Luxury Condo
Condos, just like mansions and luxury apartments, must have amenities piled upon amenities to be considered luxury condos. The building has to be attractive, the interior stunning, and the location central to all the delights of high-end urban living from shops to restaurants to easy transportation options.
The Bottom Line
if real estate is the road to investment wealth, then luxury homes, mansions, or condos must be the palatial stops along the way. If you are in the market to invest in luxury home, mansion, or luxury condo contact Juan Pesqueira & Lavish pAdZ we will not only find you the right investment or development project but we will also protect it!