What are Luxury Apartments and How to Choose Them Correctly
The popularity of apartments is growing yearly - many people choose this type of real estate as a place to live or investment tool. However, before choosing such an object, it is worth understanding all its advantages and disadvantages.
Luxury apartments – what are they?
The first thing that potential owners should know about apartments is that de jure such objects are not considered residential premises. By law, this is commercial housing, which is subject to increased housing and communal services tariffs. Accordingly, there are no subsidies or state support programs for the purchase of apartments. If you need to quickly earn money for buying luxury apartments - try online casino.
A significant part of the capital's luxury housing market consists of apartments. As a rule, such objects are as close as possible in their functional parameters to flats. You can live in the apartments, rent them out, or resell them.
So, we have figured out what luxury apartments are, and now we offer to find out what advantages they have:
the cost is 15-20% lower than apartments of equal size and location, which makes this option very attractive from an investment point of view. Thus, if you plan to rent it out, the property will pay for itself faster than an apartment due to its lower cost. By the way, the owner of the apartment will not lose in taxes either, since the higher (compared to an apartment) tax rate is offset by the lower cadastral value;
the uniqueness of architectural solutions, interiors, and layouts - exclusive penthouses with panoramic views, terraces, and winter gardens are worth looking for in this segment;
best locations - many residential complexes and luxury apartment houses are located in the most prestigious areas
Among the main disadvantages is the lack of permanent registration. In addition, in this case, developers are not obliged to provide residents with social facilities - kindergartens, schools, and clinics.
How to choose the right apartment
The investment potential of the property depends on the correct choice of area, residential complex, and apartment building. Experts in the elite real estate market will help you make a profitable purchase that clearly meets all the expected parameters.
Types of Luxury Real Estate
A townhouse is a complex of low-rise buildings united by common walls and sometimes one roof. Usually, it is designed for 2-4 families. Each has a separate entrance, its own terrace, and a backyard. This is a relatively new format for Russia, which became popular only recently. Townhouses can be located either outside the city, in a quiet place, or in the very central part of it.
A villa is a detached luxury home, most often designed in a Mediterranean style. Usually, it is intended for temporary holidays outside the city, but if the infrastructure is available, you can live in it all year round. Sometimes construction companies call townhouses villas - this is a marketing ploy. You need to carefully study the project.
A penthouse is an elite apartment occupying the entire top floor of a residential building. Usually, these are central and historical places of the city, with a beautiful view from the window, a terrace, and a minimum number of neighbors. Some options have a separate entrance group and their own entrance to the parking lot, which allows you to avoid interfering with other residents.
Single-level and multi-level apartments. They can be located either in a clubhouse or in a townhouse. There are many more requests for one-level apartments. This is due to the fact that many people experience inconvenience when moving between floors. In addition, a multi-story property occupies less land in an elite area, which means it can be valued cheaper. The fewer floors, the higher the status of the object. It is worth considering this trend when investing.
An apartment is essentially the same apartment, only legally it is considered non-residential premises and belongs to commercial real estate. It has all the amenities for living. The peculiarity is that it is not yet possible to register in the apartment; the tax on ownership of such real estate is higher (0.5-2%). But most often they cost much less than apartments and have a convenient location. Now a bill has been submitted to the State Duma that will make it possible to more accurately determine the legal status of apartments. There is an assumption that they will be recognized as residential premises and registration at the place of residence will be allowed, then such objects can significantly increase in price - by 25-30%.
What factors influence the profitability of luxury real estate
Location
Location is one of the main criteria for assessing premium housing. For example, in many cities historical areas are considered elite. The closer the object is to the center and historical places, the more expensive it is. This applies to apartments, apartments, penthouses in clubhouses, and residences. If we are talking about country real estate and luxury villages, then objects located near large water (lakes, reservoirs, sea) become more attractive. The presence of high-quality beach infrastructure is also appreciated.
Environment
It is important for residents that their neighbors are people of the same social status as them. They also respect privacy - the fewer people living nearby, the better.
Uniqueness and limited supply. Unique architectural solutions and individual designs are valued. Usually, this is a limited offer and closed sale: the opening of the property is not announced, since it has already been pre-booked by a specific investor.
Liquidity is a characteristic of assets that allows you to understand how quickly an asset can be sold at a price close to the market price. Some luxury apartments may be overpriced and take one and a half to two years to sell. This does not mean that the asset is bad. He can simply wait for his buyer and even create deferred demand in the future. Liquidity depends on all the factors listed above and the market situation.
Conclusion
When purchasing luxury real estate for investment purposes, you need to decide on a strategy for making a profit before purchasing. Renting and resale have their own characteristics. Take into account the location, the uniqueness of the property, the surroundings, and the project itself - how well it meets the needs of the modern market.
If you know the market well or use expert recommendations, transactions with luxury real estate can bring good profits since prices in this segment are growing very quickly.