Luxury Homes – Bargains?

As you are considering your investment moves, please do not forget the luxury home market.  It was a fact, in our not-too-distant past, that foreclosures of homes valued at over $1,000,000 were very rare.  Certainly few luxury homeowners were faced with the possibility of a short sale because of the large downpayments that were typical of these luxury buyers.  However, in today’s economy and today’s world, luxury foreclosures or luxury short sales can be a wonderful option for investors.  There is a robust luxury rental market, with many companies encouraging employees to rent rather than own if their assignment is expected to last 3 years or less.  And while most professionals would never recommend “flipping” at this price point, it is certainly possible to find a home that needs improvements.  As with all price ranges, some properties have fallen into disrepair or have not been updated due to the financial woes of the owners – and certainly this is true in the luxury market.  While many luxury homeowners are well-entrenched and stable, there are many whose family situation, employment situation or general outlook have changed…and that can mean opportunity for you if you are considering luxury home investments.  Remember, luxury foreclosures aren’t just the “McMansions” that proliferated in many upscale suburban communities, which many people believe were overpriced anyway. These luxury foreclosures now can be waterfront, in exclusive gated communities, or historically significant properties.  Open your mind to the possibilities!

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