Luxurious Marbella is the ultimate place to put down roots for Brits abroad. Most years, non-Spanish buyers make up 30% of investors in the Marbella property market. You guessed it – the biggest group of foreign investors were British people.
Years of investment have made Marbella a hotspot for anyone interested in investing in luxury real estate. It’s just a short flight from many UK hubs and boasts 320 days of sunshine year round. Could it be the right place for you to buy a luxury property?
We’ve put together a guide to real estate investing for beginners. Join us as we explore 7 reasons why luxury property could be the right investment for you.
1. It’s Something Special
We often associate luxury with something expensive. But it’s far more than that. For something to be truly luxurious, it needs to be unique, exclusive and not run-of-the-mill.
Luxury property should give you an experience that’s special. It’ll be somewhere that you look forward to visiting time and time again. Because it’s unique and different, it will hopefully retain or increase in value differently to normal properties.
So how can you pick something special? It could be the right address – the most exclusive part of town. It may have an enviable plot that affords it views no other home in the area can compete with.
Or it might be the level of finish. Most people who buy property of this kind value their privacy, so take that into account when making your purchase.
Always having one eye on the future will help you to shop with your head as well as your heart. If a luxurious feature is very of the moment, ask yourself how appealing it will be in ten years’ time when you decide to move on.
2. Always In Demand
Certain locations around the world have established themselves as luxury hotspots. They’ve carefully crafted their image to attract investors with serious buying power. Think the French Riviera, Marbella and Tuscany.
There are good reasons why holidaymakers and other international visitors love to come back to these areas again and again. They’re not flash-in-the-pan destinations. That means that any investment in luxury property in these areas is likely to continue to appreciate in value.
Of course, nothing is certain. But the number one rule of real estate investing for beginners is still location, location, location.
Don’t make the mistake of buying an amazing, luxury property in a place no one wants to see or be seen. Stick to tried and tested locations with strong markets that have stood the test of time.
3. Short-term Rental Market
These days, people expect a little more when they rent a villa for their summer holiday than they did in the past. They expect to head to a luxury property where they can enjoy a standard of living as good as or better than they have at home.
They’re looking for the perfect location – quiet, but close to the heart of the action. They’re also looking for top-drawer amenities, like private pools and hot tubs. Don’t forget beautifully proportioned and well-equipped kitchens and entertainment spaces to boot.
If you invest in luxury real estate and give the people what they want, you may be rewarded. Luxury rentals in Marbella can command high-end prices for the right property. Run your business carefully and you could generate some extra income and get to enjoy the home when it’s not rented out.
4. Potential for Bigger Gains
Investing in luxury property requires a bigger outlay upfront. But you also stand to make bigger gains if you sell at the right time.
When the global financial picture is uncertain, properties may come onto the market at more affordable prices. Luxury properties may be the first things people list when tightening their purse strings, especially if it’s a second home or a holiday rental. If you can pick up a property at a more affordable price during a time of recession or uncertainty, you may be able to cash it in for more if the market picks up in the future.
Of course, the converse is true as well and you can make bigger losses. So choose your property carefully, prepare for the worst and get expert advice on how to time your buying and selling to perfection.
5. Can You Flip It?
If you’ve got experience in property development, flipping luxury real estate could be very lucrative indeed.
Many people like to buy a luxury home that needs no work doing to it at all. Somewhere they can enjoy or start to earn a rental income from immediately. But if you’ve got a crew who are skilled in high-end renovations, you could be on to a winner.
If you can pick up a luxury property – or one with the potential to be a high-end pad – for a reasonable price, you could make a mint fixing and flipping it.
6. Lower Maintenance
If you avoid the fix and flip route, you could get a low-maintenance property that keeps ongoing costs to a minimum. Always get a full survey before buying any property, especially a luxury one. This will show up any structural or other issues that will cost a lot to put right.
Most luxury properties are presented to the market in turnkey condition. That means that everything has been recently renovated to a high standard.
But bear in mind that you will need to keep up to those luxury finishes. Factor in regular touch-ups if you put it on the holiday rental market to keep it looking its best and avoid negative reviews.
7. Additional Security
Luxury properties are often located in gated communities. Stand-alone homes usually have private entrances that keep unwanted visitors out.
This level of security can appeal to customers who are willing to pay more for safety and privacy.
Luxury Real Estate Investing for Beginners
Our guide to real estate investing for beginners has shown that a luxury property can be a great way to earn extra income. Get the location right and you should have an appreciating asset that you can sell for a tidy profit in the future. But beware of properties that are in the wrong place or are not as desirable as they first seem.
Are you ready to start your luxury property search? Choose Marbella is here to help. We list the cream of Marbella luxury property for discerning investors.
Click here to view our latest listings.