What are High-End Property Investments?

‍High-end property investments are those that are considered superior, unique, and highly desirable. Such real estate commands higher prices and can be a route to more valuable investments. 

Property is and has always been a solid bet for your money. When you focus your efforts at the top end of the luxury market, you potentially stand to make larger returns.

High-End Property Investments: What You Need to Know

• What makes real estate high-end?
• Does luxury always mean expensive?
• The pros and cons of high-end property investments

What makes real estate high-end?

To be considered high-end, real estate needs to have one or more of the following attributes:

• It must be exclusive.
• It should be unique—or have elements that make it so.
• It must be superior to other, more run-of-the-mill, properties.
• It should be in a desirable area.

In short, it should have qualities that make people want to pay a premium price to own or rent it. Other elements that can help enforce that include:

• Waterfront properties.
• Those with incredible natural views, such as over the countryside or mountains.
• A swimming pool (or the use of one).
• Other leisure facilities.
• Close to exclusive amenities, such as fine dining, sought-after golf clubs, art facilities, and expensive shopping options.
• They may offer hotel-esque amenities, such as valet parking, maid services, wine cellars, etc.
• High-spec interior décor, fixtures, and fittings.

Does luxury always mean expensive?

The two tend to go hand-in-hand, but don’t run away with the thought that you need to always have deep pockets to invest in the luxury market. You can always start small—perhaps buying a studio apartment in an expensive landscape, such as a ski resort. Buying off-plan, before properties are built can often mean you benefit from developer incentives. 

You could also consider upping the spec of a fixer-upper. If it’s in the right location or has a feature that makes it unique, kitting it out with extraordinary features could turn a more normal investment into one that’s considered high-end.

The pros and cons of high-end property investments?

The greatest advantage to investing in high-end property is the chance for a greater return. Luxury equals a more exclusive clientele that’s often willing to pay higher prices to get what they want. This can lead to higher capital appreciation.

If the intention is to rent, rather than sell, then individuals with a higher net worth can often be less problematic tenants.

However, there’s always a flip side—no serious investor will ever make a move without considering the cons as well.

Higher price points and exclusive clientele often make such investments better for those with experience. The higher gains often come with higher maintenance and management obligations. In addition:

• The initial costs are likely to be higher. This means you’ll need enough cash to comfortably manage this.
• There are fewer properties available, so there’s more competition. This can mean it’s more difficult to find suitable options.
• You need to know what makes a property high-end. This comes through experience and means that if it’s your first foray into real estate investment, you might want to consider more regular options for your first few purchases.
• You’ll also need to market appropriately. This can be quite different from targeting, say students or first-time renters. Of course, if you use a property management company, this removes the challenge. Just be sure that you choose your provider with care, because they too need to be experienced in dealing with the luxury market.

Need to Finance Your High-End Property Investments? Fast-Track Cash Flow with a BRRRR Loan

The road to great returns requires the right financial backing. At BRRRR we offer some of the most attractive interest rates in the market, plus our range of products means there’s an option for virtually every borrowing need.

Find out more at https://www.brrrr.com and call our expert team today.