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Luxury Communities

Show Me the Money - Is Your Luxury Community at Risk?

Luxury homes are a great investment but caution is still advisable especially when considering new luxury home communities. Nothing places your home at greater risk than rows of empty homes with "for sale" or worse, "for rent" signs sitting in the front yard month after month. The problem isn't luxury home communities per se but actually the borderline financial situation of recent investors and home buyers.

In recent years, investors and marginal applicants have used sub-prime mortgages, negative amortization loans and other financial instruments to purchase luxury homes they really cannot afford. All was well as long as interest rates remain low and housing prices continue to increase at double digit rates each year, but as soon as the market cools, those same buyers are often caught off guard. Unable to sustain the payments, liquidation isn't far behind. Unfortunately, empty homes and foreclosures put your investment at risk as well.

Fortunately, there are some things you can do to protect your luxury real estate investment:

- Find out the number of owner occupied homes versus rental or investment homes.

- Work closely with a knowledgeable real estate professional who understands the local market and knows the history of the area.

Contact one of our real estate agents for complete answers to all of your real estate questions or search for your next home purchase now by searching through our detailed home listings.


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