Things to Look for When Investing in Luxury Real Estate

Although luxury real estate evades clear definition, most properties exude some type of extravagance, whether that be through panoramic oceanside views, countless amenities, or a prestigious history. Those investing in luxury properties should align their search with their goals for the home, whether that be owning a vacation property, an upscale rental, or real estate purely for investment. Look for the seven factors on this list when searching for Kailua luxury homes.

The most important part of an investment that keeps its value and will appreciate in price is location. Although an investor might upgrade or repair a property, location is much less flexible when it comes to changes. Luxury real estate is located in highly sought out, exclusive, limited, or private areas that offer something other neighborhoods in the area don’t. Typically, luxury real estate is nearby other luxury homes or within a community offering extensive amenities.

Those searching for Kailua luxury real estate can count on breathtaking ocean views and shoreline access. Kailua itself is 12 miles outside of Honolulu and provides a quiet atmosphere full of sandy beaches, turquoise waters, and tropical scenery. The weather is sunny year-round, offering endless opportunities for outdoor recreation and great views. This makes it a great spot to invest for buyers interested in a private coastal oasis or investors taking advantage of vacationer demand.

Although investors should be prepared to pay more for a luxury property, all investments should be made with an end goal in mind. Creating a budget, even if money isn’t an issue, can help investors focus their ventures on the biggest potential gain. When planning a purchase, make sure to factor in costs like maintenance, HOA fees, homeowners insurance, renovations, and monthly mortgage payments.

Another large part of a property’s appeal is the amenities both within the home and in the community. Luxury homes should offer a convenient and comfortable lifestyle and may have additional spaces like an outdoor patio with a pool, an entertainment room, and a kitchen outfitted with high-end appliances. The surrounding area should provide amenities like fine dining restaurants, upscale shopping centers, and prime entertainment.

Kailua is full of outdoor recreation and other upscale amenities that make it so attractive to luxury investors. The most notable attraction is its beaches which include the 2.5-mile shoreline of Kailua Beach Park as well as kid-friendly destinations like Kalama Beach. Fresh produce is unparalleled to the selection at the Kailua Farmers Market, while local spots like Manoa Chocolate and Grace in Growlers offer a unique drinking experience.

Part of what makes luxury properties worth the investment is their quality construction. Properties built with durable and high-quality materials meant to withstand Kailua’s tropical weather and sunshine are more likely to retain their value throughout the years. The workmanship used to build the property is also important. Before buying a property, luxury buyers should always order a home inspection to uncover any potential issues.

Whether coastal chic, glassy modern, or completely custom, luxury properties tend to have unique designs, unlike surrounding real estate. These designs add to the feeling of exclusivity that makes them so valuable. Depending on the goals for the investment, buyers should look for properties that appeal to how it will be used.

Since the outdoors is such a coveted amenity, any Kailua luxury real estate that takes advantage of this is likely to be a good investment. This may include large windows in living rooms and bedrooms that look out onto the water, extensive back patios with areas to sit, dine, and cook, or courtyards nestled within the home for a private outdoor escape.

Ideally, a luxury property is built to be low maintenance. The best HVAC systems, plumbing and electrical setups, and other necessary aspects of a home are installed to last. This means they should have fewer problems in the long term than normal systems, which saves investors time and stress tending to a property. For landlords, this also improves the experience renters have in the property, which is integral to marketing the home and attracting future tenants.

A part of luxury’s definition is often associated with size, and homes with more square footage present more opportunities for wear and tear. If a luxury investor isn’t locally based, they should hire a property manager to tend to regular maintenance and repair needs.

The best way to find a luxury property that’s worth investing in is to partner with an expert agent like Mike Dilks. Make sure an agent specializes in luxury property transactions in the area and that they have a track record of success. To find the right agent, buyers can ask for recommendations from friends and family, search on online agent sites, and review agents’ individual sites. A buyer should talk with an agent in person to make sure they’re a good match.

Agents help buyers in a few ways. They have access to a local MLS, which they’ll use to search for listings based on a buyer’s needs. Many luxury properties also sell off market, which can make it difficult for buyers starting an independent search. Luxury buyer agents are well-connected with sellers’ agents in the area and can provide their clients with essential insider information.

There are several factors that make luxury real estate a good investment. Above all, buyers should always search for properties in desirable locations nearby upscale amenities. The properties themselves should be constructed with high-quality materials designed to last and feature low-maintenance systems. Price out an investment correctly with the help of a local agent for an investment that’s well worth the effort. When you’re ready to start a home search in Kailua, contact trusted local agent Mike Dilks to guide you through the process.