While the residential property market remains robust, more and more are looking to increase their property portfolio with a luxury home. Purchases like these are often driven by the heart rather than the price but an investment like this needs careful consideration.
Relationships are key
One person’s luxury home is another’s nemesis, which is why it’s important to have an excellent relationship with your estate agent. Communication is at the heart of our industry so ensuring that your main contact knows you, what you’re looking for and the elements that are going to make a property stand out will help make the process as enjoyable as possible.
Some people’s idea of a luxury home has an indoor pool, tennis court, acres of land and stables. For others, a beautiful 3,000 ft2 penthouse apartment with fantastic views will tick all the boxes. Working with a reputable local agent will ensure they know the property market inside out, have access to contacts that may be looking to sell off-market or pre-market and will understand the area’s nuances like nobody else.
Location, location, location
The old adage of “location, location, location” most definitely applies when looking to buy a luxury property but not in the same way it does when looking for a family home. While schools and transport links normally play a big role in finding your perfect property, for a luxury property the wow factor is equally, if not more, important.
Dream big (and wisely)
There’s no denying that buying a home is one of the most stressful things you’ll go through, and if you’re buying a luxury property, it’s probably the biggest purchase you’ll ever make.
When looking for a mortgage, ensure you use the services of someone who knows your financial history, has experience dealing in luxury properties and will be able to advise you rationally. It’s easy to get carried away so you need someone you trust to be able to tell you whether you’re able to meet the mortgage each month or whether you’re dreaming too big.
Instruct an experienced solicitor
The legal process of buying a luxury property can be a challenge as so much capital is at stake. With many properties, particularly in the country, having issues over rights-of-way, footpaths or indeed onerous covenants, you need someone who has experience in buying and selling luxury homes.
An experienced solicitor will check over any financial documents from your lender, and if you’re purchasing through other means, you may need advice on managing your tax obligations.
Slow and steady wins the race
When you’re looking for a luxury property with the high price tag that goes with many of these, it’s important that you consider all eventualities. Will you one day want to develop the property or make any changes? Can you see yourself living in the area in 20 years? Have you taken the time to check you’re not going to be on a flood plain?
These are all things your estate agent can help with but you need to ensure you don’t make a rushed decision just because you think you’ve found your dream home.
Alex Mackay, Managing Director at Mishon Mackay