Luxury Real Estate: Elevated Returns for Investors

Investing in real estate isn’t always a glamorous business, but luxury homes can add some bling to your portfolio. According to a survey of 81 international luxury markets, luxury home sales increased by 11 percent annually in 2017. In some markets, limited supply and heightened demand allowed luxury housing to outpace non-luxury home sales. In the U.S., a stable economy has helped drive luxury home sales, despite rising interest rates and questions over how tax reform might impact wealthier investors.

2250 Indian River Crescent, North Vancouver, BC. $36.2 million.

Experts say that the equity bull market is in the longest stretch in American history and as a result, there’s an increasing activity among high net-worth individuals. This should continue to boost portfolios and create a wealth effect, increasing confidence and funds to invest in luxury real estate. Investing in high-end properties isn’t limited to the elite, however. Newly created net worth is driving a new buyer, including millennials, say realty network executives. If you’re ready to invest like the rich, here’s what you need to know about moving up the property ladder with luxury real estate. Adjust your perspective. Luxury real estate isn’t your run-of-the-mill property investment. The luxury market is a global market; the buyer pool is international. As a result, it appeals to a larger audience and thus can command higher prices.

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40275 Highway 141, Gateway, CO. $149 million.

That can translate to elevated returns for investors–– as the evidence demonstrates, luxury real estate investments provide higher yields than the stock market without as much volatility. Real estate investors in top-performing markets are enjoying a windfall, and find comfort in the fact that luxury real estate values in the U.S. will always increase over time. High-end real estate also holds up better when traditional real estate or stocks flag. Luxury real estate investments tend to rebound better when markets soften because they’re considered desirable, are generally unique and tend to have strong intrinsic value that surpasses the cost of replacement. One significant benefit of owning real estate is that it will never be at zero value, even in a dismal market, while stocks can plummet to such a level.

10210 Strait Lane, Dallas, TX. Philip Johnson masterpiece. $27.5 million.

Luxury markets aren’t created equally, however. In general, luxury real estate can be lucrative, but some markets may be hotter than others, both domestically and internationally.

781 Fifth Avenue, New York, NY. Entire 18th floor, white glove service. $68 million.

For example, in New York City, there now exists supply saturation and that’s putting constraints on price. Yet, luxury properties saw tremendous appreciation in value from 2013 to 2016 as a new generation of luxury condos entered the market. In 2017, Seattle lead the way with the most robust year over year luxury sales growth, followed by Dallas and San Diego (as well as several cities in Colorado). All of the aforementioned regions proved to be among the hottest luxury second-home markets, with sales volumes of million-dollar-plus homes reaching levels not seen since the pre-housing crisis era. Internationally, Vancouver has emerged luxury housing markets. Studying market trends is crucial when choosing where to invest in luxury properties.

99 Union St Unit 1202, Seattle, WA. $12.5 million.

Luxury Looks to Concrete

Unfazed by associations with cell blocks and parking garages, more homeowners are discovering that concrete is the chameleon of construction. It can take on the texture of wood or glass, an artist’s palette of color beyond drab gray and, with the addition of structural fibers and plasticizers, is less prone to cracking.

Villa Christina

Gorgeous Concrete Villa Christina Budapest

Concrete has been around since ancient times, when Roman builders mixed lime, sand and rubble with volcanic ash to create the Pantheon dome. Modern concrete swaps out the volcanic ash for portland cement. Concrete homes can be poured in place into forms made of plywood or steel plate and lined with everything from pine boards to mirror-smooth plastic laminate. Or they can be erected using precast concrete walls or blocks. The sturdiest concrete homes are reinforced with steel, making them strong enough to withstand fires, floods and hurricanes.

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Textured Concrete in Auckland

Concrete homes are typically more expensive to build than conventional homes, but they’re less expensive to maintain and more durable over time. Concrete affects the bottom line in other ways, lowering heating and cooling costs and even insurance premiums. “Reinforced-concrete building systems are more disaster resistant, more insect resistant, more mold resistant—also one of the most energy-efficient systems available,” said Ed Hudson, director of marketing research for Home Innovation Research Labs, a subsidiary of the National Association of Home Builders, a trade group.

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Functional Concrete Living Room in Sydney

According to surveys, poured and precast concrete is most popular in the luxury sector—accounting for 4.1% of high-end homes built last year. That marks a steady increase in the demand for luxury concrete since the recession low in 2012, when such homes accounted for just 1.9% of new construction. Investing in concrete construction with high-end finishes may pay off in resale value–– Realtors now recognize that polished concrete floors are a very popular design element. Also, concrete, when imprinted with a pattern, can create an aesthetically pleasing dramatic effect. Although renowned for its durability, not all concrete is built to last. In the Los Altos Hills, Calif., a designer constructed a wall that has been engineered to partially erode over time; the concrete, which was mixed with soil and organic matter to encourage the growth of lichen and moss, is also embedded with hidden objects, such as stones, machine parts and a doll belonging to a female client. “Some are starting to show up now,” she said. “Some of the things won’t show up even in my lifetime.”

Historic Pill Hill Abolitionist’s House Hits Brookline Market at $2,850,000

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Click for a full slideshow and contact information

Originally built in 1864 by the Philbrick family, well-known Brookline builders and abolitionists, 195 Walnut Street in the “Pill Hill” district of Brookline Village has been recently renovated in collaboration with the Brookline Historical Commission. This newly-modernized property is on the market for $2,850,000. Beneath a slate mansard roof, the home has six bedrooms, five bathrooms, and 4,400 square feet of living space divided into four levels. This Civil War-era brick home rests on a 9,466 square-foot lot. The main level living room offers original hardwood floors and french doors that lead to a mahogany deck. The second-floor master suite includes a marble walk-in shower with a bench and a soaking tub. Not be outdone, the third floor also boasts a suite, complete with a full bath. Additional features include high ceilings, an original stone fireplace complete with refinished wooden mantel, high-end kitchen appliances, and a finished lower level.

 

Boston Rents Down for Luxury, Up for Everything Else

Rents in Greater Boston have fallen slightly over the last year — but only in the top tier of the market. For everyone else, they’ve ticked up. The changes in this region’s rental prices are quite small, but follow a trend in large metropolitan regions across the nation. In Boston, like most other major cities, rents have fallen for the highest earners since last August. Naturally, throughout the last seven years, rents in Greater Boston have increased for everyone, but substantially less so in the luxury market. The median rent in the most expensive third of the local market increased 20 percent from June 2011 to June 2018. For the bottom third, it’s risen 27 percent. For the middle third, it’s increased 32 percent.

Screen Shot 2018-08-27 at 1.25.25 PM.pngThe divergences at different rental points indicate steady growth in all sectors, signifying a ripe opportunity for investment in all markets–– especially luxury homes. The numbers are remarkably positive, and all signs indicate a market that is seldom situated in such a financially convenient position for buyers, sellers, and renters alike. Below are several links to fantastic luxury properties now available for rent/sale in Boston proper as well as the Greater Boston area. 

https://castlesunlimited.com/listing/72334652/132-yarmouth-road-brookline-ma-02467/

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https://app.castlesmag.com/CastlesMag/listings/40BurroughsWharfPh6-Boston.html

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https://app.castlesmag.com/CastlesMag/listings/50LibertyDrive-Boston.html

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https://app.castlesmag.com/CastlesMag/listings/117BeaconStreet-Boston.html

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https://app.castlesmag.com/CastlesMag/listings/46RoslynRd-Newton.html

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23 New Million Dollar Housing Markets Predicted by 2020

Almost two dozen cities across the US are expected to hit the million-dollar mark. Buyers looking for a luxury home might be in luck. According to new research, the country will gain 23 million-dollar housing markets (markets where the median home value is more than $1 million) by the end of 2019.

If projections hold up, that brings the total to an astonishing 220 million-dollar cities across the nation. Of the 23 new cities, 14 are in California, with more than half in the Bay Area region alone. New York will gain three new million-dollar markets, while Washington and Massachusetts will both gain two. Florida and North Carolina are expected to gain one each, respectively. Overall, the number of million-dollar housing markets has doubled since 2013. Economists expect that number to continue growing, too. 

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“These markets tend to be affluent and exclusive suburbs in communities adjacent to finance and tech hubs,” writes Svenja Gudell, economist. “Although home value growth is expected to slow over the next year, particularly at the high end of the market, the number of cities where more than half of homes are valued in the seven digits is expected to jump to a new all-time high over the next 12 months.” According to the numbers, the market is at a convenient intersection for both buyers and sellers. Luxury housing in secure, affluent neighborhoods is attainable and increasing in availability. Home value will continue to steadily increase across the luxury market at a healthy rate, providing home buyers with affordable prices and reasonable rates–– simultaneously allowing homeowners to grow their wealth and remain secure in their assets.

MA:

  1. https://app.castlesmag.com/CastlesMag/listings/117BeaconStreet-Boston.html
  2. https://app.castlesmag.com/CastlesMag/listings/45CoolidgePoint-Manchester.html
  3. https://app.castlesmag.com/CastlesMag/listings/39SearsRd-Brookline.html
  4. https://app.castlesmag.com/CastlesMag/listings/47GoddardSt-Newton.html
  5. https://app.castlesmag.com/CastlesMag/listings/46RoslynRd-Newton.html
  6. https://app.castlesmag.com/CastlesMag/listings/468HIGHLANDSTREET-Hamilton.html

FL:

  1. https://app.castlesmag.com/CastlesMag/listings/2500GordonDrive-Naples.html
  2. https://app.castlesmag.com/CastlesMag/listings/23StarIsland-Miami.html
  3. https://app.castlesmag.com/CastlesMag/listings/3080MunroeDr-Miami.html
  4. https://app.castlesmag.com/CastlesMag/listings/515CasuarinaConcourse-Miami.html
  5. https://app.castlesmag.com/CastlesMag/listings/605OceanBlvd-GoldenBeach.html
  6. https://app.castlesmag.com/CastlesMag/listings/3100GordonDrive-Naples.html
  7. https://app.castlesmag.com/CastlesMag/listings/NorthPalmBeach-NorthPalmBeach.html
  8. https://app.castlesmag.com/CastlesMag/listings/1160SOCEANBLVD-MANALAPAN.html

NY:

  1. https://app.castlesmag.com/CastlesMag/listings/121FurtherLn-EastHampton.html
  2. https://app.castlesmag.com/CastlesMag/listings/146VailLane-NorthSalem.html
  3. https://app.castlesmag.com/CastlesMag/listings/58CatRidgeRd-NorthSalem.html
  4. https://app.castlesmag.com/CastlesMag/listings/16EvergreenWay-OldBrookville.html
  5. https://app.castlesmag.com/CastlesMag/listings/2NorthwestWay-Bronxville.html
  6. https://app.castlesmag.com/CastlesMag/listings/54MorrisLane-Scarsdale.html
  7. https://app.castlesmag.com/CastlesMag/listings/195MillsRd-NorthSalem.html
  8. https://app.castlesmag.com/CastlesMag/listings/234TuckahoeLn-Southampton.html

CA:

  1. https://app.castlesmag.com/CastlesMag/listings/1116LindaFloraDrive-LosAngeles.html
  2. https://app.castlesmag.com/CastlesMag/listings/2727BenedictCanyonDrive-BeverlyHills.html
  3. https://app.castlesmag.com/CastlesMag/listings/4694NorthLakeBoulevard-CarnelianBay.html
  4. https://app.castlesmag.com/CastlesMag/listings/5020WestLakeBoulevard-Homewood.html
  5. https://app.castlesmag.com/CastlesMag/listings/5225FigueroaMountainRoad-LosOlivos.html
  6. https://app.castlesmag.com/CastlesMag/listings/630NimesRoad-LosAngeles.html
  7. https://app.castlesmag.com/CastlesMag/listings/72BeverlyPark-BeverlyHills.html
  8. https://app.castlesmag.com/CastlesMag/listings/818HotSpringsRoad-Montencito.html

NC:

  1. https://app.castlesmag.com/CastlesMag/listings/1382LangdonRoad-SherrillsFord.html
  2. https://app.castlesmag.com/CastlesMag/listings/1400AlpineCreek-Raleigh.html
  3. https://app.castlesmag.com/CastlesMag/listings/12324BirchfallsDrive-Raleigh.html
  4. https://app.castlesmag.com/CastlesMag/listings/250BlueVioletWay-Durham.html
  5. https://app.castlesmag.com/CastlesMag/listings/6036OverHaddenCourt-Raleigh.html

Luxury Market on Record Streak

    The luxury market is on a record streak, boasting double-digit growth in 19 of the largest markets in the nation for the first time in over four years. According to the July Luxury Home Index by realtor.com®, High-end homes are moving at an increasingly accelerated rate, with age of inventory at 108 days—11 days faster than in July 2017. The strong economy and affordable interest rates are bolstering demand for luxury homes. While the number of buyers targeting $1 million-plus properties continues to rise, the market shows few signs of diminishing availability.
     According to the Index, which analyzes 91 counties in the luxury segment, examining prices in the top 5 percent of all sales, specifically, the fastest-growing luxury markets are:
Price (Top 5%): $1.004 million
+21.2% YoY
Price (Top 5%): $1.27 million
+15.8% YoY
Price (Top 5%): $2.41 million
+14.7% YoY
Price (Top 5%): $2.8 million
+14% YoY
Price (Top 5%): $1.34 million
+13.7% YoY

Private Island in Bora Bora

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This property sits on a 9.3 acre lot stretching from the lagoon to the reef in Bora Bora. The property has a spectacular view of the sunset and the island’s famous peak, Otemanu. A massive solar electricity and water system is already in place. Included in the property are 16 bungalows, a 400 foot dock on the lagoon side with a covered lanai at the end, a managers home, car, boats, tractor, telephone line, wifi, laundry, workshop, storage room, and office.

This property is featured in the latest issue of Castles Magazine

Jewel of Crystal Bay

This incredible mansion on the edge of Lake Tahoe’s Crystal Bay is on sale for the first time ever. Built with an eye for creative design, innovation, and modern yet classic comforts, Crystal Pointe is a lakefront masterpiece on 5.14 secluded acres.

The home, nestled into the rocky mountain side, takes advantage of its 525 feet of lakefront with four buoys and a seasonal boat barge. The estate includes a main house, guest house, caretaker’s apartment, and beach house, as well as a 4 car garage, for a total of 8 bedrooms, 10 full and 2 half bathrooms.

The estate is comprised of 16,232 square feet of magnificent living space, and also includes 13 fireplaces, a 10 seat theater, a 1,687 bottle wine cellar, private gated drive, entry pavilion, two glass funiculars, magical gardens, ponds and waterfalls, and gorgeous green lawns.

Click here to see the listing on CastlesMag.com

River Oak Farm

This breathtaking equestrian estate is set on 46 acres of pristine land along the Ramapo River in Mahwah, New Jersey. The property is surrounded by an additional 9,000 preserved acres of land. This country retreat is conveniently located within close proximity to Manhattan, offering convenience along with quiet seclusion.

THE MAIN LIVING AREAS

The enormous main house is filled with seven bedrooms, seven full and three half bathrooms, a two-story foyer with staircase, two-story great room, formal dining room, gourmet kitchen, breakfast room, family room, and wet bar. The master suite includes a massive stone fireplace and private spa. A private staff quarters and carriage house offer an additional three bedrooms, two full and one half bathroom.

EQUESTRIAN FACILITIES

A 20-stall barn with state-of-the-art facilities, a 14,000-square-foot indoor riding arena, five paddocks, and private riding trails are included on the estate grounds, making it an equestrian-lover’s paradise.

RECREATION

The grounds include a soccer field, basketball court, infinity pool with a three-tiered stone terrace, and an outdoor kitchen. There are also sports lounges located throughout the estate, as well as an indoor pool with spa, wine cellar, home theater, English-style pub, massage room, gym, padded recreation area, and emergency generator.

Paradise Valley Estate

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Sitting high and elegantly in the coveted Paradise Valley, this custom estate is the epitome of luxury living.

The interior spaces are fitted with white marble floors from Thassos and counters of limestone, marble and onyx, hand-carved groin vaulted ceilings, custom cabinetry throughout, a mahogany  library/office and lavish spa-like master suite. The home includes a theater room, separate guest house, six fireplaces and courtyards. 

Also included are a tiled pool and spa, 22 foot BBQ bar, fireplace and fire pit.

This listing is featured in the latest issue of Castles Magazine