Can You Afford Luxury Properties?

Prices of luxury properties are hot and it keeps on soaring in the real estate market and the market potential for luxury properties is also getting larger than ever.

An average buyer shouldn’t be shut out of high-end real estate market. These type of properties can be within reach if you make smart choices before you bid. There is no home – regardless if it’s a luxury or a regular one – can be a dream home if you can’t pay for it or if you get a mortgage more than you can afford it for.

It is important that you be diligent and do your research when you’d like to purchase a luxury property. If you’re looking to take advantage of the current housing market and would like to buy a luxury home, here are several strategies you might consider, without taking a major blow to your finances:

Buy now before prices or interest rates go up.

There is never a right time to buy in the market and you’ll never know when prices or interest rates will go down. Home prices have increased by 35 percent over the past year, however, interest rates are still quite low. If you’d want to pay less for your home, it’s best to go ahead and buy now – you’ll be equally pleased with the equity when you get a bargain for it before prices rise up again.

Make a straightforward bid.

One strategy that you can do is to offer a large deposit when you’ll sign the contract that may help you lock in a deal where you’ll actually save on the total price of the luxury home. Another strategy is getting pre-approved and line up your financing ahead of time – this can make your bid more attractive and it will allow you to act more quickly when you find a home that you really like.

Find an agent/broker that specializes in local real estate.

One of the hotspots for luxury homes is in Miami, FL. If you are eyeing that location for purchasing a luxury property, you can visit and check out the properties or even get assistance from professionals who would be happy to help you in getting a good deal. Some of the best properties are:

  • Jade Brickell
  • Brickell House
  • The Ivy Downtown Miami
  • Icon South Beach
  • Marina Palms

Hunt for foreclosed listings.

Looking for foreclosed luxury properties can be another way for you to afford one. The prices are usually more than 10% below their actual value so it may be worth a try to look into this.

Dip into your retirement fund.

Once you’ve built a significant amount in your retirement fund, you might consider this – although you should practice extreme caution when you go for this option. You shouldn’t splurge for a luxury home now and then sacrifice your nest egg. There are other things you will have to consider when you do this – it’s best to get all the information from your employer, financial advisor or plan administrator should you decide to go this direction.

With these in mind, buying a luxury home can happen. If you’re still dubious that you can really purchase a luxury property, keep in mind that a real home is where you live happy, comfortably and within your means.