Investing in California Luxury Real Estate is a Great Way to Riches
Investing in the California luxury real estate market is a great way to make money and the best part is that you don’t need to have millions to invest in a luxury portfolio. The key to making money from luxury real estate is knowing how to control real estate.
In many cases, luxury real estate is a much better even than other cheaper real estate. You can flip a small home in the same way that you would flip a luxury home but the only difference is the profit potential.
First, what are the features which characterize luxury real estate?
According to Randy Char, senior vice president of operations at One Queensridge Place, luxury real estate has to be, “unique and exclusive, in a good way in a desirable way. People who are wealthy will pay a premium for something that’s perceived to be superior.”
Real estate mentor Laura Alamery said that there has luxury house flipping has begun to soar nationwide and, according to RealtyTrac, the housing data company, since 2011, flips of homes valued at $1 million or higher have gone up almost 40 percent across the country.
“Two main factors have contributed to this increase in interest on accumulating a luxury portfolio: the first one, with the real estate market collapse, Wall Street investors saw an opportunity in luxury portfolio investing and moved into the mid-market with so much money that they bought nearly every foreclosure in sight, mostly to rent out,” Alamery wrote on her website. “The second factor has been the exponential increase of foreign investors in the US real estate market. Last year, Chinese investors spent $12 billion on U.S. real estate, making the country the second-biggest foreign investor, just behind Canada, according to the National Association of Realtors.”
Jay Belson of Luxury Real Estate believes that buying, remodeling, and reselling a luxury property is extremely profitable.
“It’s faster than building from ground up, but is limited to properties that have just the right combination of architecture, condition, and layout,” Belson said.
If you’re looking to invest in California luxury real estate, you’re in luck. Some cities in California are the most profitable in the country such as Beverly Hills, Bel Air, San Francisco, and Malibu.
California luxury real estate is a great place to start. According to The Richest, Malibu may not have the high median income compared to Bel Air but it is one of the best areas to for luxury real estate, “Although the median income in Malibu may not match up to some of the other cities in southern California, such as Bel Air ($141,163 vs. $289,999) it’s the sheer concentration of billionaires that make Malibu – at least parts of it – more luxurious. Malibu is home to Carbon Beach, a mile and a half stretch of land along the beach with 70 lots. Property values in Carbon Beach are roughly $200,000 per square foot of beachfront land, making it completely unattainable for even most multi-millionaires. Carbon Beach is home to Oracle founder Larry Ellison – one of the world’s 5 richest people – among other billionaire Hollywood and tech executives.”