Luxury Home Investments: The Pros and Cons
A home is something many of us had dreamt of having. And just like childbearing, buying a house is arguably one of the most crucial decisions we’ll ever make in our life.
Moreover, we prefer to own something straight out of a luxury cruise line instead of a simple one, right? A grandiose theater, well-equipped gym, chef’s kitchen, cool wine cellar, Pinterest-worthy bathroom, and all the perks!
But with extensive designs, fancy amenities, and overall dazzling appeal, homeownership, especially that of a luxury residence, is not all rainbows and butterflies
For some, it is actually a grim reality. Because aside from the enormous purchase price, extra charges like property taxes, association fees, renovation costs, and emergency repairs should still be considered.
So before you go and decide to live lavishly in a fancy house, take a long pause and acknowledge its many advantages and disadvantages. And since we care for your long-term financial health, here are the most notable pros and cons of luxury home investments:
Pros:
1.First-Rate Quality
Probably the most significant advantage in buying a luxury home rather than an ordinary one is the combination of high-quality building materials, outstanding architectural details, and stellar workmanship.
Living in a house that reflects your lifestyle, speaking to you on a spiritual level, you can be sure that every time you walk through the door, you’ll get a sense of pleasure and fulfillment. Also, many luxury real estates feature unique amenities like mother-in-law suites, elevators, large garages, outdoor kitchen, and community pool. So, owning an extravagant abode not only feels good but also enhances your way of life.
2. Good Location
Did you know that 80% of luxury house investments are made because of the location?
As most of these homes are in high-end neighborhoods, you can always enjoy breathtaking sceneries without drifting too far from the energetic city life. Being away from pollution and noise associated with metropolis, you’ll get to relish the cool breeze of air whatever season you are in.
And if you want to level up with that view, there are modern luxury cruise ships where you can own a cabin, live on it, and travel the world as long as you desire.
3. Better Resale Value
We’re letting you know that investing in anything belonging to the luxury category can give you a better return in the future, as they tend to appreciate faster while depreciating slower.
If you decide to let go of your luxury house, you are certainly assured of a higher resale value.
Cons:
- Sky-High Price
Luxury property prices shouldn’t surprise you anymore. Investing in a luxury house or apartment could drain your pocket and even cost you some hundred dollars along the way. Plus, homeowner’s insurance can get really expensive, especially at these modern times.
That is why owning a 9-digit dollar mansion, for most of us, is just a pipe dream.
2. Difficult to Maintain
Bear in mind that the costly principal value of a luxury house isn’t the only thing you will spend your hard-earned money on.
Luxury living is not simply purchasing an extravagant property but a lifestyle that requires responsible maintenance. Also, repairs can add up if the house is old.
3. At High Risk of Deceit
If you are a newbie in luxury investments, you should be aware that you are at high risk of getting the bad end of a deal. Make sure to get a trusted real estate agent so you won’t be taken for a ride.
If you are a would-be luxury homeowner, don’t get easily swept up from the adrenaline rush of the many sale offers. Reliable financial experts always warn that in the real estate market, buying a house you can afford is a smart move. Because unfortunately, no one exactly knows what type of house is suited for your situation.
So take time in weighing both pros and cons before investing in a luxury home for you to avoid regrets soon.
