When you’re considering purchasing property this year, take a look at the opportunities in purchasing a luxury property. There are many luxury properties that have been on the market for quite a while. With the real estate market beginning to heat up, this could be the perfect time to invest in luxury properties. Here are 3 reasons why investing in a luxury property might be more of an advantage to you.
1. The Luxury Market Includes more Inventory
With the slow economy, any properties that are being purchased are on the lower end of mortgage prices. This means that the real estate inventory is decreasing for more moderate homes while the inventory for higher-priced luxury homes is increasing, which provides more opportunities for you to purchase a luxury home.
Luxury home inventories are expected to continue increasing for a while as most real estate buyers are focusing on lower-cost housing. This provides home buyers with the ability to choose from a wider selection of properties and to obtain the home that they might not have been able to afford previously. Until the market rates begin to rise, this is a good time to consider purchasing a luxury home.
2. Mortgage Prices are More Flexible in Luxury Properties
As the real estate market begins to heat up, real estate purchasers will find that there is more price flexibility in luxury homes than in lower-cost housing. More moderate homes and properties have less room for negotiating since the prices are already very low. In slower economies, some homeowners have even had to take a loss to get out from under their mortgage. But luxury properties often have a wider margin, allowing for the opportunity to negotiate for a better mortgage rate.
3. Mortgage Prices are Currently at Optimum Levels
The best time to consider purchasing a luxury property is now, while interest rates and mortgage prices are low. It is expected that the rates will increase this year, limiting the inventory that real estate buyers can qualify for. While the rates are low, more home buyers are qualified to purchase, but as soon as they begin to rise, it limits the number of applicants who can qualify and the properties that are available to them. If you have been considering purchasing a luxury property at all, this year is the time to do it before the rates begin to go up. Check with a local realtor for luxury properties available and mortgage rates.