Most everyone enjoys a little luxury in their lives, be it cars, food or clothes. So it’s no wonder when considering your investment portfolio that luxury investment in real estate is a valid proposition. Luxury investment in Istanbul offers many attractive opportunities in a number of diverse areas but what makes a property a luxury investment, the answer is not just in the fixture and fittings, research of what is available is tantamount to a successful purchase. Certain areas require thought and consideration before a purchase?
- The Area, Do you choose vacant land which will possibly appreciate in a quicker time frame than property? If in an area with limited supply that adds to the potential appreciation rate.. Property will bring in rental incomes from the onset of purchase, depending on the type of property and the potential rental pool. For example near a university would indicate rooms and single units would be of bigger demand than big gardens, real estate as a luxury investment would have to be in an area to attract the appropriate clientele. Is the area you are looking at the potential for tourists or businesspeople looking for a certain quality of residence? Does the area attract tourists? What is the transport like, near an airport or transport hub? What is the scenery like? Depending on the rental income you are expecting and the potential clients the area you choose is of huge significance on your return. Again it is essential that you do your homework.
- The Money, luxury investment in real estate is not about a short term path to wealth it is about mid to long term return on your investment. Can you afford to do this, wait for the return? Ensure you know the potential cash flow, which is not only the expected rental income but the outgoings as well. Luxury investment often demands a larger outlay at the beginning offset by the rental that can be charged but be aware that this type of property with its select venue, security pools and gyms come at the additional cost of maintenance.
- The dynamics, of buying, as mentioned above nothing beats doing your homework. Get to know the area, talk to professionals and locals learn the lay of the land so to speak. Look into municipality plans for the future goals for the area; you would not want your property to suddenly be on a new bypass would you? Use the internet and property professionals to get a clear estimate of average rents, property values, demographics, all information to help make your choices better.
- Pros and cons, Donald Trump is quoted as saying …"It's tangible. It's solid. It's beautiful. It's artistic … I just love real estate."Real estate investment is an exciting opportunity to see the cash flow increases along with the returns on your investment. There are pros and cons to everything; it is in your portfolios best interest that you make yourself aware of what they are as they relate to you. With careful planning, support and the relevant information any disadvantages can be managed.