As most of the major economies of the world prosper so does the niche market of luxury real estate. It is one of the segments of the world that has shown a quick upward trend in its development. This market aims at the richest economic groups of the world.
Definition of luxury real estate
The definition of luxury real estate differs from place to place and also depends on the views that the property offers. The main criteria is the location of the property. If the property is located on a beach with a view of the ocean in the forefront for example, it most certainly would be classified as luxurious. Though this property may not be very large, due to the location, view and the facilities it provides, it becomes a prized possession
Now is the ideal time to invest in Miami realty because there are so many homes on the market, including luxury estates, that are priced below the market value. The housing boom that hit Florida in the 1990s caused an influx of supply to the area. When the market declined in recent years, the supply remained but the demand declined as well. As a result, there are luxury estates in Southern Florida, especially in the Miami area, that are priced reasonably and are ideal for those who are looking for a long term investment.
One of the best aspects about investing in property is that it is a tangible investment. Unlike stocks, real estate is something that you can actually use. You can live in your home in Miami, lease it to others or keep it as a winter retreat. As shelter is a basic necessity in life, real estate is something that you actually need, unlike stocks, which you do not really need at all
Looking for a safe place to invest your savings? Then maybe you should think about luxury real estate investment. You've seen the headlines. Luxury homes selling for record-breaking prices. Luxury property values appreciating even while other properties remain unsold. The fact is, that even given the current poor economic climate, luxury home investment remains a lucrative option for anyone looking to make money with their savings. Now why is that?
One of the main reasons is that luxury property markets benefit from insulation from problems affecting other markets. While a poor economy might stifle other sectors of realty, these problems do not affect the wealthy in the same way. Another reason is that foreign investment is a big factor in luxury property, as the US remains one of the most desirable countries in the world in which to own a second home, thanks to its quality of life and education services, amongst others. The result is that foreign investment often helps to keep luxury real estate markets in good shape, even if the other markets are struggling