Tips For Buying A Luxury Home As A Long-Term Investment
If you have decided to move your nest egg out of the stock market and buy a luxury home, then these tips will help you select just the right property:
Tip: Work with a Luxury Home Real Estate Agent
Since you aren't looking for a standard tract house located in a suburban subdivision, you shouldn't work with a real estate agent who spends most of their time selling these lower-end homes. Instead, you should work with an elite agent who specializes in selling only high-end and luxury homes. These agents know the luxury market inside and out, and they often come with a bonus of pocket listings or homes they know are soon coming onto the market.
If you have never worked with an elite agent before, then it is important to note they will require you to prove you can afford a luxury home before taking you on tours. This is a standard industry practice and should not dissuade you.
Tip: Buy a Home in an Exclusive Community with a Strong HOA Presence
Since you are buying a luxury home as an investment for your future, you should purchase one inside of an exclusive community containing other high-end homes. The community should be gated if at all possible and should have a very strong homeowner's association presence.
While you may not like living with the restrictions of an HOA, they are a necessity if you want to ensure the future resale value of the property. After all, the HOA might restrict the color you can paint your home or the fence you can install, but they also do the same to your neighbors and this prevents coming home from work one day to discover the next door neighbors have painted their home purple and it now looks like a massive grape!
Tip: Make a Strong All-Cash Offer
Since you have the cash in your bank account to purchase your luxury home investment, you should make a strong offer when you find a home you want to purchase. Since many other buyers will need to have an appraisal to secure their mortgage loan and you do not have this problem, accentuate your offer is all cash and include a large good faith deposit. Finally, if the seller is in a rush to sell, offer to close as soon as possible or anything else your agent thinks will get your offer approved over others.