There are many benefits of purchasing a luxury real estate property over a similar amount of investment made on other ventures like stocks and mutual funds.
It is a trustable asset that becomes more valuable as time progresses and saves you from the woes of rising inflation or volatile markets. If you are still wondering why you should ever think about investing in luxury real estate, take a look at the following key benefits right now.
1. Protects You from Inflation
Inflation hurts businesses and income sources. But, luxury real estate always manages to keep pace with inflation and helps you derive better income via rentals. Therefore, it’s an asset that can always assure you of a healthy and peaceful retirement.
Besides providing you with a passive income source, it also saves you from the rental amounts that you will have to pay over the years if you don’t own your own property.
With soaring inflation rates, you may not be able to survive long by continuing to rent. But, by investing in luxury real estate, you can save your rental costs in the long term.
You don’t have to move as long as you pay the mortgages and you can always have a place to rely upon. Although, the initial payment you will make for the purchase may look expensive, but if you calculate how much you could actually save by choosing to buy than to rent, the amount will never look high.
2. Riskless Investment
Owning a luxury real estate property is comparatively a less risky and safer investment. There is always a chance that a stock market may crash due to an unfavorable event or your business investments may fail due to unfortunate events like natural or man-made disasters.
This does not mean that you should never look into these areas as a viable source of income. It is just the simple and obvious fact that luxury real estate being a safer investment option must be given extra significance.
3. You Can Leverage Your Property
Real estate properties can also save you during conflicts as you can use them for refinancing. You can easily borrow money by pledging your real estate assets for low-interest rates.
Lenders are more willing to accept luxury real estate properties as security for a loan. Luxury real estate properties also give you more borrowing power as you may even get up to 95% of the property value as the loan.
4. You Don’t Need Expert Help
Investing in luxury real estate is plain and simple. It is unlike the stock markets where you need to have the complete understanding of the complex working of the various numbers, stocks and market conditions.
You can easily get started with almost zero learning curve and the research work involved in real estate is quite easy too. The things that your real estate agent in Coral Gables or anywhere else look for in a property like a good location, good tenants and rental growth can all be easily searched for and checked for validity.
It is much easier to search for a luxury real estate compared to dealing with all the unknown variables involved in a stock market. There are various well-known developers with fantastic plans who make it easy for you to own a luxury real estate. You only have to pay attention to the legal procedures and check the property location and values which can all be done with a little research.
5. Asset Appreciation
Just as the rental values increase every year, the value of the luxury real estate property also ascends every year on the majority of the cases.
Asset appreciation is a major factor that gives you a great growth opportunity for your capital and that is exactly what you get in a real estate investment (http://beginnersinvest.about.com/od/realestate/a/Types-Of-Real-Estate-Investments.htm).
The property values increase every year and the right time to make an investment in luxury real estate is now. Being a tangible asset, you can always add more value to the property by renovations and thereby increase its market and rental value.
Real estate can also become the most valuable tangible asset that you can pass down to your heirs as an amazing gift. And in general, luxury real estate properties are valued more than normal real estate and thus you can always be assured that your money is spent right.
So, when do you plan to purchase a luxury real estate?