Investing in luxury property is quite different from the process of buying a typical home. Regardless of what your definition of luxury is, you need to know how this market differs from the general housing market. For example, there are more similarities between high-end country estates and luxury apartments than suburban row homes and small urban flats. But there are more things that you’ll need to know if you want to add a piece of luxury property to your portfolio. Here are 5 insider tips for finding the best luxury properties for investment.
Don’t Expect to Find Them on the Standard Property Websites
You may be able to find luxury flats in London for sale on property websites. However, it is unlikely that you’ll find a beach home or country estate for sale on the same websites. Many of these properties never hit the open market, because they’re sold through word-of-mouth first. They’re often unlisted to protect the seller’s privacy, too. The solution is to find a good property agent. They can help you find properties when they become available.
Expect to Bring in Experts at Every Stage of the Process
Luxury homes, by definition, come with a higher price tag. However, determining a proper valuation for the property is more challenging, since there are fewer comparable homes to judge it against.
An estate agent who regularly deals with luxury properties is more qualified to tell you what you should offer for the home than anyone else. Furthermore, they’ll be able to tell you what areas you should look in, whether you want access to the best schools or you want to be within walking distance of the beach.
Let’s suppose that you agree on a price. You may then need to hire an expert to carry out a reliable survey. You’ll also need to bring in specialists to make necessary repairs to historic homes. A good estate agent can recommend qualified tradesmen and surveyors. Only hire advisers you can trust, since you’ll probably be relying on an entire team recommended by your solicitor or estate agent.
Work with the Right Type of Mortgage Lender
Luxury homes have a much higher price tag than middle-class homes. This means you may not be able to use your current mortgage lender if you’re going to upgrade from a £200,000 home to a million-pound home.
You’ll have no choice but to speak to the million pound mortgage experts in this case. This broker is a leader in the million-pound mortgage market and handles more million-pound mortgages than anyone else in the United Kingdom. They serve a large number of clients in every part of the UK and will allow you to not only find great deals, but find them much faster and without the hassle.
Never skip the inspection. This is essential to every home purchase, but it is all the more important when you’re looking at luxury homes. Choose a professional inspector who understands the special requirements that come with luxury homes. You can’t afford to spend several million pounds on a property that requires that much more to repair unseen defects.
Document everything wrong with the home, whether you use this to negotiate a lower price or get things fixed before you move in. With enough information about surrounding properties, you could negotiate a lower price based on the view or the amenities.
Luxury homes are a cut above the rest. However, there are still tips and tricks you can use to get a relative bargain on these high-end properties and just find the one that’s right for you.