Buying a luxury home is not just about purchasing a house. There are many other aspects of purchasing a luxury home that you must focus on before making your final purchase decision. First, let’s understand what a “luxury” home means? Luxury homes can be defined as properties priced in the top 10% of their local markets.
Now, it is essential to understand certain aspects before you buy your luxury property because these factors will help you get better returns on your purchase and provide a better living experience for yourself and your family members.
It would do you good to do your due diligence before you get in escrow for what you consider to be your dream house. From the location of the property to the neighborhood’s future, one must consider everything before making such a significant investment. After all, no one would like to resent their dream purchase years down the lane.
If you are also looking to buy your home in a posh area, here are some things to consider before you sign on the dotted line.
Location
Location is the main thing you should consider when buying a luxury home or property. Always choose a location with reasonable proximity to shopping and dining, good schools, good healthcare facilities, good roads and public transport, an airport nearby, beaches with good surfing options, and golf courses. After you take these factors into account, consider other things, such as the internal quality and design of the property.
A luxury home that checks off all these boxes for you must be in a very safe neighborhood or area. It ensures safety for both your family members as well as yourself. The community around the house is also vital because it will determine the kind of people your children can mingle with while growing up. If there are no friendly neighbors around the house, your kids will not get any playmates, nor will they have anyone to talk to when they feel lonely.
Check out local government rules regarding pet ownership before buying a luxury home because some areas prohibit having pets on their properties, even if they are domesticated like dogs or cats. It’s better to know beforehand whether or not you’ll be able to bring Fido along when moving into that new mansion.
Size of the Property
Property size is a relative term. Buyers often ask themselves how big their home should be, but this is the wrong question. Instead, you should consider how much space you need for your lifestyle. If you have a large family, you will need more square feet to accommodate all of your family members. However, even if you don’t have a large family, it’s important not to exclude properties with extra space that could be useful in the future.
The size of your property should be in proportion with other nearby homes and lots. For example, if other properties around your home have 2-3 bedrooms while yours has six bedrooms and 15 bathrooms, it may stick out like a sore thumb. Moreover, these properties may not perform well on the market compared to others in the area that are smaller or more affordable (even though they may still sell).
Homeowners Association Fees
Luxury properties can come in different forms, and not all of them have an HOA. Before buying a luxury property, you should know precisely how your HOA fees will be determined. The HOA fee is necessary because it includes insurance, common area maintenance, landscaping, and property management fees.
When you are a part of an HOA that has lots of amenities, like pools, golf courses, and fitness centers, it’s understandable that the monthly dues will be more expensive than at places without those amenities. Some HOAs have monthly dues as low as $100 per month, while others have dues over $1000 per month.
Taxes and Insurance
Before you decide to purchase a luxury home, you may want to consider the extra costs involved in closing the deal. Luxury homes have higher taxes and insurance costs than typical homes.
The following are some ways to prepare for these expenses:
- First of all, you must sit down with your realtor before going house hunting and determine how much you are willing and able to pay for taxes and insurance. It ensures that there won’t be any unexpected financial surprises when you find a house you love later.
- Next, it may be helpful to speak with your bank ahead of time regarding mortgage rates associated with different types of homes. If they offer special rates or deals for a specific type of property, this could save you thousands over the life of your loan!
- While looking at houses online (or in-person), make sure to look at asking prices and what kind of tax rate each home has assigned. When comparing properties side by side, there will not be any significant financial surprises waiting behind closed doors.
Security and Amenities
These are the top concerns when buying a luxury property with a fireplace and pool. A gated community is always a good idea, as these are designed to keep out unwanted visitors. It’s also good to have multiple layers of security in place, including an alarm system, smoke detectors, and security cameras. For added peace of mind, look for a home equipped with home automation features like automated lighting, HVAC systems, and smart locks. Solar panels are another great amenity that can lower your electric bill and make the property more eco-friendly.
You’ll want them by the truckload if you’re making this kind of investment. Look for properties that offer access to gyms, pools, clubhouses, and concierge services—having these perks on-site can ensure you never even need to leave the comfort of your luxurious new digs. If you want to go all-in on fancy living, consider looking for properties with extra features like guest homes or an attached yoga studio.
Conclusion
These are just a few things to consider before buying a luxury property. While some of these revelations may seem glaringly obvious, we believe that it is better to over-prepare than be caught off guard and run into unexpected issues. It is always important to do your research and due diligence before embarking on any significant purchase. There are many benefits of owning a luxury property, but they are not for everyone. Make sure you do your homework before making such a significant investment.
