Wikipedia defines luxury real estate as the real estate market niche targeted to high-net-worth individuals. These individuals tend to own multiple homes in numerous locations across the world.
Ever wonder who is buying luxury homes, in Southern Ontario? According to a study done by Coldwell Banker Real Estate Corporation, Canadian buyers of this kind of properties belong to these profiles: “31% are cash buyers, 68% are considered ‘new money.’ The number one job among these home buyers is classified as “business executives,” 67% are from the “baby boom” generation, between the ages of 45 and 65, and 88% of luxury home buyers are married.
Other findings include: “designer kitchens are the top priority concerning amenities, 89% of luxury home buyers request a four or five-bedroom home, and 49% of luxury homes sold by Coldwell Banker sales agents have between 4,000 and 6,000 square feet.”
Although these homes are rather expensive, still many would want to become luxury home owners. Needless to say, these houses are not for those with a flat wallet (the home price ranges from $1M-$4M) and a faint heart (the upkeep is rather costly, too). But remember, you are not just paying for the house but for the grand amenities as well which come with it, and not to mention the location where it stands. Here are a few tips when planning on purchasing a luxury home:
1. Although multiple listing services (MLS) can be helpful when choosing this kind of homes, you may have to see the property for yourself. Head to and drive around the area you are interested in and where these properties are located. See and have a feel of the house you’re about to call home. As they aptly say, seeing is believing. And being that luxury homes are not ordinary homes yet cost extraordinary, you might as well make sure that you’re going to invest in a property just as you’ve expected it to be or even beyond that.
2. A huge amount of money is involved when purchasing a luxury home. Some Most luxury homes are priced between $1M-$5M. Not to mention the other costs that goes when purchasing the said properties. Check your finances and have it all cleared from debt and any other liabilities that might alter your payment for your luxurious property. Go to the bank you’re most comfortable to transact with. And get pre-approved for a loan and work on it; banks mean and do protect their business as well. Typically, luxury homes are purchased with jumbo loans – a mortgage that does not conform to the guidelines preset by Fannie Mae (Federal National Mortgage Association) or Freddie Mac (the Federal Home Loan Mortgage Corporation).
3. Document everything and in order. With the unstable economic climate and the apparent extravagant price of a luxury home, pre-qualification is inevitable. Pre-qualification is entirely different from pre-approval. Pre-qualification is an assessment of your income, assets, and debts. Through this, a projected down payment is drawn and in what kind of loan you’d likely qualify for.
4. Hire experts and professionals. A buyer’s real estate agent can be more helpful to you with this kind of transaction. They work exclusively with and for you, unlike some agents who also work with sellers. An exclusive buyer’s agent mainly look after your welfare and your wanting to acquire that luxury home you’ve been dreaming of.
Owning a luxury home is pride in itself, as everyone don’t have the privilege to acquire one. Luxurious as it is and as it sounds, you still have to work on it. But the pleasures, looks, amenities that go with this kind of homes are worth every penny you’re going to spend on it.