Purchasing a luxury home can be a great investment for the right buyer who can afford to make the purchase. Luxury homes are often fully upgraded with top-of-the-line appliances and finishes, as well as a lot of square footage and an amply sized lot. However, since luxury homes do cost considerably more than a standard single-family home, it is important to think things through before you make an offer. The last thing that you want to do is commit to buying a luxury home on a whim. If you're seriously considering buying a luxury home, make sure that you consider the following things.
Cost of Maintenance and Repairs
Since luxury homes are typically larger in size and have more expensive appliances than standard single-family homes, it is important to think about the cost of maintaining the house before you make an offer. Consider the age of the home and whether it will need any major repairs in the near future, such as replacing the roof, water heater, or HVAC system. It is also a good idea to consider landscaping and how much time or money it will take to keep up the yard. If you're planning on doing the yard work yourself, you will need to be sure that you have enough free time. In the event that you want to hire a landscaping company, find out how much a weekly or bi-weekly service will cost for the front and backyards.
The amount of property taxes owed on a home is usually dependent on its value. Thus, luxury homes that are valued higher than standard single-family homes typically have a higher property tax. You may be able to afford a luxury home based on the asking price alone, but you also need to find out what the yearly property taxes were for the past two years. Property taxes can vary greatly from city to city and state to state. In some cases, property taxes can add hundreds of dollars to a monthly mortgage payment.
In addition to learning more about property taxes, you will also want to have a good idea of how much homeowners' insurance will cost for the luxury home that you're interested in purchasing. Your best bet is to meet with an experienced insurance broker to learn more about your options and how much a homeowners insurance policy will cost you. Doing this will ensure that you don't have any surprises after your offer is accepted and you need to purchase homeowners' insurance.
For more information on luxury homes, contact a realtor.Share