Luxury property is a dream home that one wants to cherish forever. As such one must be extravigilant and selective when it comes to availing golden opportunity to purchase a luxury home. Therich investor class considers a variety of factors when investing, including location, connectivity,proximity to business centre, return on investment (ROI) potential, and regional development. Hereis a rundown of four key factors to consider before investing in a luxury property, particularly if youwant to add luxury property to your investment portfolio.
Location
Let’s put it straight. Luxury property investment requires a huge sum and the HNIs do not lack this.However, while making a selection of that suave and high-end property, the rich class looks for aprime location and classy ambience. A filthy and underdeveloped locality will be a strict no no forthe investors. The luxury property must be situated at a prime location with developed physicalinfrastructure including 24X7 power facility and a favourable business climate. Connectivity withbusiness centres and airports would be advantageous in this regard. Moreover, as money is not aconstraint, the research and ROI projections must make the basis of high-net-worth investments ofthis kind.
Connectivity Quotient
The ultra-rich class does not hesitate in spending money on a property having good potential.However, the ROI potential of a property is highly dependent on a bunch of factors and connectivityis one of the foremost factors. The luxury property owners belong to the affluent class of society andprefer to live in a prosperous and all-inclusive locale. Proper road connectivity, linkages with theairport and railway station and metro links are absolutely necessary for luxury property owners. Infact, the very high price tag of the property is directly related to its superb connectivity with leadinglandmarks of the city.
Investment Goal
There is no doubt that luxury property comes with a heavy price tag. Even if the investor has moneyto spare, the purpose of investment in a luxury property must be clear. It must be well-defined thatthe property is being bought for self-occupation or for rental income. If it is bought for self-occupation, factors such as social infrastructure and amenities must be up to date as this will directlyaffect the quality of living of the residents. If the property is purchased for rental purposes, it mustbe near the business centres and connectivity must be seamless. If the purpose of purchase is clear,the investment journey would be hassle-free and one would be able reap the benefits as the onlyconstant asset that consistently produces the highest ROI is real estate.
Finances
There is no denying the fact that luxury property investors do have deep pockets and they have a high budget at their disposal. Despite this, money cannot be wasted and must be invested prudently. Even if the investor has surplus money, he might want to avail of cheaper credit to buy a certain property. As banks are liberal with HNIs due to their sound financial position, they disburse loans almost instantly. The investor must have a plan to finance his prized possession.
In addition to the arrangement of finances, the investor can also ask for the right price. Just because he has money, doesn’t mean that he can buy at any price. In fact, by getting it at the right price, one may well save a few million in luxury property deals. One must be aware of the price trends in the region and bargain accordingly.
Conclusively, luxury property investment is not a cakewalk and requires thorough research as a lot of money is at a stake. If luxury factors such as location, connectivity, ambience, physical infrastructure,and social amenities are researched well before making investment, it becomes easier to select a high ROI-generating luxury property.
