Expanding Your Luxury Property Portfolio: What You Need to Consider in Today’s Tumultuous Financial Market

Luxury home collecting is a fun practice for many ultra-high-net-worth individuals looking for a long-term investment asset that’s enjoyable and lucrative.

That’s because building a collection of luxury properties means that you have a stunning selection of homes to choose from and a nest egg for the future.

Despite the worldwide economic turmoil, property remains a relatively safe investment. No investment is completely risk-free, but housing stock is still a great option for anyone looking for a comparatively future-proof solution.
Purchasing luxury properties is not only a great way to invest your hard-earned cash, but it’s also an ideal way to make memories and spend time in some incredible and unique spaces.

As an ultra-high-net-worth individual, you’ll probably not be as affected as others by the current worldwide economic situation as others, but you still will find yourself dealing with some of the fallout. You need to make sure that you navigate the current situation correctly so that you don’t miss out on great bargains or make a financial mistake.

To help, we’ve created this useful guide to expanding your luxury property portfolio in these challenging financial times. Whether you’re a professional luxury property investor or a wealthy individual seeking a new home, you can ensure that you make the right decisions for yourself and your finances.

Consider Usability And Location

The two main factors you need to think about when you’re scanning the luxury property market for a new home are its location and its practicality. Depending on what you want your home for, you’ll have unique requirements, so make sure you outline these before you begin your search. You’ll then be able to make sure that your international estate agents find you suitable properties and that you don’t waste your time visiting homes that aren’t fit for your specific purpose.

For example, if you’re aiming to make money from a property by renting it out, you’ll have different needs to someone who wants to live in a second home themselves for part of the year and keep it just for family and friends. So, you should consider making a checklist of the factors you need and the ones you want from your new luxury property so that you can find the right home.

Understand The Tax Situation

Property tax, both during the purchase and for maintaining the property while you own it, can run into the thousands if you’re purchasing a luxury abode. The amount of tax you have to pay depends on a number of factors. Most crucially, you need to consider where your property is located, and where you’re domiciled, as well as how these factors affect your tax position. If you’re looking for a luxury home in a specific country, like France, then you need to try and find a tax and financial advice service that specialises in that region. Kentingtons has extensive experience in French taxation and financial law, so their experts can help you to ensure that you are fully compliant and make informed financial decisions about your French property and assets.

Choose A Fixed-Rate For Your Property Financing

Even wealthy property buyers sometimes require financing solutions, such as personal loans or mortgages. Variable-rate deals might have been a good idea a few years ago, but with today’s rates rising rapidly, it’s now best to fix your rate. You’ll then be able to ensure that you know exactly how much you’ll pay for your luxury property financing over a set period of time.

If you’re only taking out a small loan, then you might be able to fix it for longer than you’ll need to pay the debt off, so you will know exactly how much interest you’ll have to pay and for how long. For larger loans that are spread out over several years or decades, you might need to fix your rate for a time and then refinance later. Whatever your approach, choose a fixed-rate deal to ensure that you aren’t subject to the current rate rises going on around the world.

A rising and Falling price chart

Grab A Bargain While You Can

It might not seem it, but now is the perfect time to expand your luxury property portfolio. Globally, house prices are falling as housing markets cool off after a decade’s long boom. Even luxury properties are dropping in value, although less significantly than some cheaper homes. As such, there’s the potential for great bargains if you act quickly. Make the most of these tips to find the perfect new property to add to your collection and make sure you get it at the right price.

When you’re shopping for a new luxury home, consider exploring a range of ways to buy, including luxury property auctions, buying homes that need renovations and others. Once you’ve found your dream luxury home, you can renovate it as you see fit. You’ll then be able to enjoy your new home as much as you like and, hopefully, make a tidy profit from the property when you come to sell it in the future.

This article is for information and educational purposes only and does not form a recommendation to invest or otherwise. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

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