There are different investors in high-end housing.
We know that everyone is a different one and needs something different. But it can be useful to go into detail and be aware of the conclusions of an article in The Wall Street Journal based on a study that Realtor.com conducted about luxury home buyers in March 2014.
The analysis focuses on U.S. investors that do not correspond 100% with our local profiles, but it can give us information to consider, given that investment in high-end housing is a growing international sector.
Those who already own a luxury residence , or who already have experience in this type of investment, focus the buying process very differently to those who venture into the high-end market for the first time. They look especially for a good investment, according to the online survey conducted by Realtor.com. These experienced high end buyers focus less on extra space and glitzy home features and more agree to pay over their budget to get a sound investment. There is a long-term perspective.
However, experienced buyers and first-time homebuyers Luxury agree on some things: the sorroundings and the views are important, as well as spacious chef’s kitchen, according to the survey . The experienced buyer marks luxury pools as the third most important factor, while other buyers preferred a natural environment.
New buyers especially value space and layout, and number of rooms, the more the better.
Of those who are currently looking to buy a luxury home , 20 % of buyers experienced marked the privacy and security as a high point, compared with 13% of new buyers.
The study includes quotes and experiences from realestate agents, as E. Beare, from New York , who claims that experienced buyers of luxury condominium “are not looking for golf simulators and children’s playrooms and those kinds of amenities—they are looking for what the building has to offer and the reputation of the developer. ” These buyers are more concerned with features like windows and humidification systems that protect high-end furniture and art collections.
Well known architects and reputed developers are very attractive for these experienced buyers, says L. Wilson, senior sales vice president of Related Cos.
New buyers tend to prioritize finishes and layout, because they often want to settle right away without having to redo the property or conduct a lengthy remodel, says E. Beare . “It’s a totally different mindset to an experienced buyer who is more interested in buying a trophy property in the right building at the right address”.
Of those who plan to buy a luxury home, 40% of owners of high end homes today said they would agree to pay above the planned budget, if it is a good investment, compared to only 29 % of owners midrange housing, according to Realtor.com data. Investors in luxury homes focused on price a square foot instead of the overall price and searched a neighborhood that probably generate 30 % to 50 % return over the next five years.
On the other hand, most new buyers of new construction luxury Silicon Valley are young, who have have done well in the tech sphere. ” They want to be well connected,” says M. Simon, of Redfin. “They want to get walking to the market or go out to dinner without having to take the car.”
These international buyers have some expectations and tastes that are well known to us, as well as others that do not correspond exactly with our local buyers ones, let’s take those into account too for our international buyers.
At the top, photography of a luxury home in Barcelona, on Qualinhabitat.com