Main Content

Top Reasons to Invest in Luxury Real Estate

Beautiful living room interior

Thinking of investing in a luxury home? Here’s why you should take the next step.

  1. Great returns

    Luxury real estate historically offers great returns compared to the stock market, minus the volatility. The risk of loss is often minimized by the duration of time you hold on to the property. When the market goes up, so does the value of the property, allowing you to build equity.

    By comparison, the amount of risk in the stock market never goes away, and there are many factors that are beyond your control, which can have a negative impact on your investment.

    You have more control over a real estate investment because it is a tangible asset that lets you capitalize on multiple revenue streams, as well as enjoy appreciation.

  2. High value

    Your luxury home and the sizeable land it’s on will continue to have value, whereas other investments can wind up with low to zero tangible asset value. Stocks, for example, can dip to zero, and a new car model depreciates in value over the years.

    Homeowners insurance will also protect your real estate investment, so don’t hesitate to buy the best policy available so that your asset will stay protected no matter what happens.

  3. Appreciation

    As mentioned previously, the longer you hold onto real estate, the more profit you can make. The housing market has always done a great job of recovering from past crises and bubbles that have caused appreciation values to go down. Homeowners and investors who held on to their real estate investments during uncertain times often benefit when prices return to normal and home appreciation gets back on track.

    10 years after the housing crisis, homeowners and investors in top performing markets are savoring a windfall. Just about every state in the US had a positive appreciation in 2017 alone, and buyers in top performing markets have made huge profits from flipping homes.

  4. Diversification

    Diversification plays a vital role in successful financial management. Diversifying your portfolio allows you to spread out the risk. Properties have always been safe tangible assets that mitigate risk in any portfolio. There are investors who have accumulated wealth simply by investing in Denver real estate.

  5. Tax benefits

    These tax benefits include deductions on your mortgage interest, as well as cash flow from real estate investments, operating costs, property taxes, and insurance. The end of each year is often a busy time for investors because homeowners and investors want to take advantage of tax benefits at this time.

  6. Sentimental value

    A real estate investment is a solid financial investment and it also comes with intangible benefits like security and stability. Nothing will give you more peace of mind, knowing that you’ll always have a place to come home to. It also offers years of joy, pleasure, and the opportunity to make valuable memories to last a lifetime.

Ready to invest in Denver luxury real estate? Call me, Sacha Faxon, at 720-940-0099 or send an email to Sacha(at)SachaSellsDenver(dotted)com to locate your next investment.