Every buyer investing in a property has a shortlist of selling points on why they’re investing in that particular property. Whether it be the area that it’s located in, the selling price, or the amenities that it offers, every property has its share of features that make it appealing to potential buyers.
Be it a commercial, residential, or luxury real estate property, investors need to make key decisions so that they can ensure that they’re getting the most out of their real estate investment.
After years of investing in properties, any experienced investor might consider it time to upgrade and add a little extra cache to their investment portfolio. Many achieve this by breaking into luxury real estate. However, breaking into a new market—especially one like the luxury real estate market—is accompanied by a number of obstacles that investors need to overcome in order to thrive.
To break into the luxury real estate market, investors need to adhere to these three tips:
- Educate yourself on the nuances of the luxury real estate market vs. other real estate categories.
- Network with experienced investors to build up your portfolio within the luxury market.
- Build a relationship with a luxury real estate agent to facilitate the investment process.
Build up your luxury market know-how.
Dive in and educate yourself on the market. While you may boast an impressive portfolio of other investments, there are many nuances that come with investing in luxury real estate. Real estate blogs, much like this one, are a great resource for investing know-how.
Luxury is the key term that distinguishes luxury real estate from other properties, aside from its price. A property worth over $1 million dollars is typically the starting price point of luxury real estate. Thus, anyone looking to purchase a property of this caliber needs to understand how to effectively invest in luxury real estate.
While an investor may have a portfolio filled with numerous properties, breaking into the luxury real estate market requires a level of cultural awareness. Luxury properties not only have that high price tag; they have various utilities and amenities that truly make it a luxury property. From high-end swimming pools and beautiful interior finishes to lavish balconies and gorgeous views, every investor must understand the many things that makes a property luxurious. Thus, it’s crucial to educate yourself on all of the different features and amenities that a property offers.
Even the location is vital to a luxury real estate property. If you’re looking to break into the luxury market, it might be worth taking a look into the Greater Vancouver Area or the Greater Toronto Area. Vancouver, BC, and Richmond Hill, ON are among the most concentrated cities in Canada for luxury real estate property. These areas are ripe for luxury investment opportunities and could very well hold the many amenities and services that you’d want out of a luxury real estate property.
Consult with experienced luxury investors.
Since investing in luxury property is relatively different than investing in properties that you’re typically used to, consulting with experienced luxury real estate investors for advice is always a good idea—especially if you’re trying to enter the market.
While you may be an experienced investor yourself, experienced luxury investors hold a wealth of knowledge of how to succeed within the market. They’ve once had to break into the market at some point in their life to have the portfolio that they have today. So, any advice you can get from a luxury investor can prove very useful to your portfolio moving forward.
You don’t have to physically consult with luxury investors; you simply need to gain their insight. Again, the internet is a great resource for information. This blog, among many others, contain a vast array of investing advice to help your investment portfolio flourish.
Build a relationship with a trusted luxury real estate agent.
When it comes to investing in real estate, you should always have a real estate agent that you can trust—even more so with regards to luxury properties. As stated before, one of the important characteristics that separates luxury properties from the rest is its price. Luxury properties are incredibly expensive, so you need to find an agent that is fully capable of helping you find the property you want.
At RE/MAX, we understand the importance of your investment. Whether you’re looking to buy a luxury home for yourself or rent out a high-end property to tenants, you need someone who understands your interests and knows what exactly you need out of a property.
While online resources and basic market know-how can go a long way, having the right expertise in the form of a real estate agent can provide you with the assistance you need for your specific investment.
We have a wide selection of agents across the country that are tailored to your unique needs and are capable of breaking you into the luxury real estate market. Whether you’re looking to invest in a property in Burnaby, BC, or Oakville, ON—we have you covered.
Finding the right agent boils down to choosing a real estate agent that knows what you need and how to achieve it. From searching for properties in the city of your choice to having the expert know-how of the current luxury market with the experience to back it up, we’re certain that you’ll find a RE/MAX agent that can help build your portfolio.
Regardless of how many properties you’ve bought or invested in in the past, entering the luxury real estate market can be tricky even for the most distinguished real estate investors. Without the proper understanding of the culture surrounding the market and the nuances involved, breaking into the luxury real estate market can prove to be quite difficult. However, with the right understanding and the proper guidance, entering the market can be made easy.