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July 29, 2022

Pros & Cons of Buying a Luxury Home

By

Tim Clarke

Pros & Cons of Buying a Luxury Home
For many, owning a luxury home is the ultimate marker for success. The more money we make at our job or business, the bigger the house gets.

What is a luxury home? A luxury home is a residential dwelling that is higher priced in a particular area.

Luxury homes may have premier luxury home interior with quality building materials and extra nonessential amenities on an expensive piece of land.

Although the elaborate designs of a fabulous home seems appealing, buying a luxurious house has the same amount of pros and cons as it would for purchasing a modest home.

Before setting your sights on owning a high end residential status symbol, try to consider a few of the advantages and disadvantages that these homeowners face.


Pro: Numerous Amenities 

Unlike the most common cookie-cutter homes found in typical communities, luxury homes are often custom and cater to specific needs and interests.

Higher-end features include home basketball/tennis courts, movie theater rooms, custom gourmet kitchens, luxury home gyms, multi-car garages, separate living spaces for guests, and elaborate outdoor entertainment areas are typical for luxury homes.

A custom luxury home can offer amenities that most standard single-family homes simply cannot. 


Pro: Luxury Lifestyle

Luxury real estate buyers purchase their homes for the lifestyle and the quality of life it affords.

Many higher end homes are located in communities that feature their own private world-class amenities such as; luxurious resort pools, golf courses, private beach access, private gyms, restaurants, exclusive club memberships and more.

These communities are often located in proximity to highly desirable shopping areas, dining, and other popular community attractions.


Con: Expensive Cost of Ownership 

Keeping up with a large luxury home can drain your pockets. Interior cleaning, exterior upkeep, and repair costs can all add up to tens of thousands of dollars within a few months.

These revolving upkeep costs are in addition to  mandatory expenses such as property taxes, hazard insurance and HOA fees.

Con: Unpredictable Loss of Value 

Unfortunately, luxury homes are most affected by the volatility of the real estate market.

When it is a buyer’s market, the higher end homes tend to be sold at a greater discount than the rest of that local market.

Even in a healthy sellers market there are possibilities for a luxury listing to be sold for a greater percentage less than its original list price.

There are a number of expensive upgrades or renovations that you may choose to complete that may not give you a noticeable return on investment.

Living in a luxury home is the ideal living situation for some families. For others, it can be an expensive headache and potentially a bad investment.

Research who’s who in luxury real estate in regards to your local market.

Consult with a professional who knows how to sell luxury real estate to determine if buying a luxury home is the right decision for your family and lifestyle.


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