For years, leading metropolitan cities such as London have dominated the luxury property market, as wealthy individuals from across the globe have sought to invest in lavish, well appointed real estate. While these locations have managed to retain their popularity and global appeal despite widespread economic stagnation, however, expansion within emerging markets such as Russia has provided an alternative from individuals who are looking to maximize their financial returns.
Protecting your Luxury Real Estate Investment
Improvements in design and construction have been prominent in driving this trend, while enhanced infrastructure within the emerging markets has also contributed heavily. While this may well have created a more diverse and competitive luxury property market, however, purchasing property in new and less well know locations can cause considerable headaches for real estate magnates. With this in mind, what practical steps can individuals take to guaranteeing the integrity of their investment while securing a viable return?
- Inspect the Property in Thorough Detail: While it remains common practice to inspect any property thoroughly prior to purchase, this is even more important if you intend to buy a luxury abode. The margins for profit and loss are considerably higher with luxury houses or apartments, simply because they demand a significantly larger initial financial investment. So while a properties foundations and structural integrity must be inspected at your earliest convenience, it is also crucial that you evaluate its wiring, pipe-work and the function of any additional features such as a swimming pool or Jacuzzi. By paying strict attention to detail, you can uncover potential issues and minimize the risk of financial loss.
- Research the Surrounding Area and Wider Economic Trends: Whenever you begin the process of purchasing an overseas luxury property, it is important to remember that it is not entirely different to buying a domestic home. This can help you to manage the process far easier, while also researching the geographical region in which your property is based and the impact that recent economic trends have had within it. Anyone looking to purchase property in the eurozone may be deterred in the current market, for example, as widening economic concern and social unrest minimizes the potential for long term returns. Instead, more affordable housing in emerging economies has emerged as a far safer and more productive alternative, but it is only through thorough research that you can determine the best and most profitable region.
- Purchase Relevant and Effective Insurance: Purchasing property abroad is always a challenging past time, but once again the costs and margins associated with luxury property make the process even more difficult. If you intend to purchase a luxury overseas property for the purpose of renting it out, for example, there are complex considerations such as insurance that must be attended to if you are to maximize your initial investment. This requires an innate understanding of relevant international law, while you must also deal with reputable insurance agents who can offer flexible and entirely relevant coverage. Bear in mind that international properties have alternative fixtures and fitting to British homes, and these create unusual risks and hazards to guests.
This article was contributed by Denis on behalf of www.homeinspectors.net, which is a firm that delivers home inspection services and connects aspiring home-owners with reliable industry contacts.