Luxury Property Auctions: A Better Way to Sell Non-Distressed Luxury Homes

According to the National Association of Realtors (NAR), one in five homes in the U.S. will sell via auction in the next five years. Most of us think: auctions? Aren’t auctions just to sell foreclosures and other distressed properties? Not necessarily. In the last few years, a new trend has emerged: selling and buying high-end non-distressed properties via luxury property auctions.

What is an auction? Simply put, auction is a method of offering goods and services for sell through the bidding process. Auctioning involves taking bids and selling the property usually to the highest bidder.

Today, the most commonly used type of auction is Open Ascending Auction, also known as English Auction. In this type of auction, participants openly bid against each other by putting higher bids and highest bidder wins the auction. That’s when the famous gavel falls and the auctioneer announces: Sold!

There are two basic types of auctions: Reserve Action and Absolute Auction. Under the Reserved Auction, the seller will establish a minimum price (disclosed or undisclosed) for which the property must sell in order for the auction to be valid. If the highest bid does not reach that price, the auction is void. On the other hand, the Absolute Auction has no minimum price (Reserve), which needs to be met.

Why luxury auctions? Properly marketed and executed luxury actions have several advantages for the sellers:

  • Property sells for the highest market price, typically within 60-90 days
  • Price can exceed the price of a traditionally negotiated sale
  • Auctions generate more competition and interest among qualified buyers
  • Property is sold “as is” with no contingencies and with high certainty of closing
  • Auctions significantly reduce sellers’ expenses (carrying costs, price reductions, and opportunity cost).

However, sellers are not the only beneficiaries of auctions. There are several distinctive benefits for the buyers as well:

  • Bidders (buyers) set their own purchase price
  • They compete fairly and openly on the same terms with other buyers
  • No need for lengthy price negotiation process
  • Buyers know that the seller is committed to sell
  • Buyers can review property’s Due Diligence Package before the auction

In most parts of the U.S., the luxury residential real estate market (properties over $1M) is struggling. While low and moderately priced homes are selling relatively quickly nowadays, the high-end properties can linger on the market for many months and sometimes even years.

The sellers of luxury properties are faced with substantial carrying costs, price reductions, and opportunity cost, which can add up to hundreds of thousands of dollars. Recently, I have previewed a luxury home in one of San Diego’s most luxurious coastal communities. The sellers had lost over $1M in carrying costs and price reductions since the property was listed for sale almost two years ago,

Compare that to a luxury property auction, which typically sells a property for the highest market value within 60-90 days. How do the sellers know that their property had sold for the highest market value? They know because correctly marketed luxury auctions generate the highest number of qualified buyers and ultimately the buyers, not the sellers (or their agents), determine the market value of any property.

So, what’s the “secret sauce” of the luxury auctions? For the luxury auction to be successful, it must be properly marketed by a company which specializes in that type of auction. We live in a global economy where goods and services are sold across the country borders, and high-end real estate is no exception. The most successful luxury auctions, involve extensive and well executed marketing campaigns, often with both domestic and global outreach.

As a result, it is not uncommon that luxury auction open houses will attract 150 to 450 buyers eager to preview the property. In some cases buyers, who fly in from all over the planet, are allowed to make an offer on the property before the auction day (so called “pre-auction offer”). Such offer can be accepted, declined, or countered by the seller, depending on the price and motivation.

On the auction day, there are typically 10-50 buyers, who are ready, willing, and able (have certified funds) to compete to purchase the property. This is in stark contrast with traditionally marketed luxury listings, which typically generate much less interest and fewer, if any, buyers.

However, luxury auctions are not for every property and every seller. First of all, the property itself needs to qualify. Typically, the auction firm’s representative will preview the property to make sure that it meets certain criteria to be considered suitable for a luxury auction. Some of the criteria include: price point minimums, architectural design, location, condition, and the overall quality.

Secondly, the sellers need to qualify too as they need to be realistic about the value of their property. Auction is a terrific tool to sell a luxury home or estate, but it is not a “silver bullet” to sell grossly over-priced or over-encumbered properties. For instance, if the sellers want to sell their property for $5M, but the market value is around $2M, the auction is most likely not going to help.

Lastly, the seller must be committed to sell, because once the property is marketed and the auction properly executed, the odds are high that the property will actually sell. In fact, one luxury auctioning company boasts a success rate of 98%.

So, the luxury auctions are not suitable to just “test the market” as some sellers do with conventional real estate agents when they list their properties to see if there is any interest.

In conclusion, luxury property auction can be hugely effective tool in both selling and buying high-end properties. Properly marketed and executed luxury auctions sell properties for the highest market value, in the shortest amount of time, with a success rate as high as 98%.

The Rise of High End Real Estate in Palm Beach

Palm Beach is a unique market, one that has stood the test of time through all economic cycles. Area real estate is a market that will always thrive. The luxury market in the area surrounding it have 65 percent of the world’s wealth, not just this country’s wealth. With the top-tier of affluent buyers from around the globe looking for real estate investments in Singer Island, that creates a one-of-a-kind marketplace.

For many buyers, Palm Beach is where they own their second or third home, and they buy here after considering many other coastal communities, not just in Florida, but also all along the Eastern seaboard. Luxury real estate is great in down markets, although most Palm Beach buyers are in strong financial positions and can weather any market changes. While mortgage rates remain historically low, fluctuating rates often don’t affect Palm Beach buyers, who may have the means to purchase homes without mortgages. Cash transactions for luxury homes, while uncommon in other markets, still happen in Palm Beach.

Both international and U.S. buyers are attracted to Singer Island real estate for its incomparable lifestyle. Easily reachable by plane from most major U.S. cities, real estate is often a quicker weekend getaway than drives to many seaside resort destinations on the East Coast. Everyone has heard of Palm Beach, and many buyers choose the area for their home away from home. As many different luxury homes as there are in the area, there are buyers for all them. From oceanfront mansions to ultra-luxury white-glove service condominiums, there are premier properties for every buyer. In addition to those who choose Palm Beach as a place to live, there are others that view the area as a prime investment opportunity, with a history of solid appreciation for luxury properties. Real estate investments offer significant value, especially for those properties with oceanfront and Intracoastal views.

Considered the America Riviera, there are ultra luxury communities in and around the area that are just as desirable. Singer Island real estate is among the most coveted, due to its pristine beaches, natural beauty and small town charm. Singer Island’s proximity to the Palm Beaches and all their exclusive shopping, dining and recreation enhances the appeal of this island for year-round or seasonal homes. In addition, new luxury condominiums offer buyers the opportunity to buy a “design-ready” home, which means that a design team can come in and truly customize the living space for the homeowner.

From built-in bars, wine rooms, in-home gyms and media rooms, buyers can create their dream home with spectacular waterfront views. Singer Island luxury condominiums also have five-star resort-caliber amenities that include private screening rooms, tropical lagoon pools, beachside grilles and many other luxury extras. In the more exclusive condominium buildings on Singer Island, there may even be the option to purchase additional amenities, such as an enclosed private garage, oceanfront cabanas, private guest suites and air-conditioned storage rooms.

Tampa Luxury Homes Available Through Short Sales

Tampa’s luxury home real estate market has incurred a popular buzz term…the short sale. Open a newspaper, look on the internet and you’ll see that the market is flooded with properties listed as short sales. Simply put, these are properties that lenders authorize to be sold prior to foreclosure or at a loss to both seller and lender. The advantage is that it may save the seller’s credit and potentially cut the lender’s future loss of maintaining the property during the lengthy foreclosure process or worst yet, foreclosing on the property.
Deals are available all over the place. How about on Tampa’s luxury homes?
Tampa luxury homes are no exception to the short sale market. More than the average middle class homebuyer got swept up in Florida’s real estate bubble that began growing about five years ago. Not only were the Jones’ over borrowing, but the Rockefellers were too, so to speak. Like I said before, shift happens! The bubble burst and some Tampa luxury homeowners are feeling the economic pinch, or perhaps the economic bear hug. The universe has an indelible way of leveling the playing field, which translates into the overwhelming real estate gains of yester-year are now losses.

There is a potential deal for Tampa luxury homebuyers who find themselves in this precarious market. Higher priced short sale properties are available even in Tampa’s luxury home market. Check out various popular online resources to do a property search of luxury homes in the Tampa Bay area and surrounding locations.
From personal experience, patience is a virtue when making the decision to buy any short sale or distressed sale property. To aid in the process and prevent the sale from falling through, consult with an experienced loss mitigation specialist. These are typically people who have experience working for large banks who can negotiate with the Tampa luxury homes lenders to close the deal efficiently. Without a negotiator to consistently and persistently work to close the deal, many short sale deals may never come to fruition. The short sale will undoubtedly take longer than a normal deal, however to score luxury homes in Tampa, perhaps even waterfront, for 5-10% below market value, is worth it. I’m referring to the fair market value of deals that have closed on comparable properties in the same area.

Closing a short sale on a luxury home in Tampa can happen, despite some real estate naysayers. Know what you are getting into and don’t fall in love with a home. Like people, real estate deals will break your heart if you aren’t willing to dig up the dirt.

Wealthy Buyers Focus on Naples Florida Luxury Homes

Finding dream homes in sun-drenched Naples Florida is all about discovering elegance in the luxury home market among some of the most scenic real estate in the world. Million dollar homes or mansion styled beach estates attract a very discerning group of wealthy home buyers to this luxury home niche market. Luxury home buyers expect a superior level of service and a skilled and knowledgeable Realtor. This article will introduce luxury home buyers to several of these spectacular communities in Naples Florida and we hope you enjoy the tour.

The top community of single family million dollar homes in Naples Florida is the boating enclave of Port Royal. Estate mansions in this community are located just south of the main entertainment district and are the most prestigious for luxury home real estate in Naples. Estates exist on both the beach and the bay for boating enthusiasts. With the Gulf of Mexico nearby, Port Royal has about seven hundred estates, and many with private deep water gulf access. The exclusive and beachfront Port Royal Club offers membership for residents for about $80,000. There is no golf course in the dream home community of Port Royal but the Naples Beach and Golf Club is a short drive.

Grey Oaks is another luxury homes community on our list of Naples finest when it comes to gated luxury golf course communities. This gated golf community provides the thrill of playing one of the top five private courses in the State of Florida. Grey Oaks Country Club was also recently named one of the top fifty golf courses in the Southeast. Estuary Estates at Grey Oaks are typically over five thousand square feet of living space and the custom crafted mansions are located among the perfectly manicured golf course fairways. Tennis and other luxury amenities are also available along with world-class spa services. Located just minutes from the vibrant entertainment section of downtown Naples, and very close to some of the finest sugar-fine white sand beaches anywhere, Grey Oaks is a value.

Pelican Marsh, another fine luxury homes enclave in the Cocohatchee Strand nature preserve, provides a pristine and exotic nature feel with miles of walking paths that wind throughout the dream home community. Ideal for biking as well, this very upscale real estate community was ranked in top one hundred luxury home communities nationwide. Pelican Marsh offers residents million dollar plus homes and estates with sparkling lakes and fountains. The Pelican Marsh Golf Club is a world-class golf club that supports a tradition of distinction with a challenging par-72 championship golf course. The golf course surroundings offer a superior display of nature and wildlife along with a challenging course among gorgeous luxury homes. Vanderbilt Beach is also less than two miles away for residents enjoyment.

Naples Florida Real Estate May Be What You Are Looking For

If warm summer nights and beaches are what you are looking for, you may want to consider purchasing real estate in Naples, Florida. With a community that is filled with upscale shopping, restaurant variety, and filled with diversity, Naples has everything that one could ever desire in a community.

The fact is Naples is a community that continues to grow and you’ll find plenty of activities to join in. Naples holds at least one fair or festival each month and it’s celebrated with seafood, sun, and fun. It’s hard not to enjoy yourself while you’re in Paradise and residents know this. Real estate in Naples, Florida is being scooped up by those that are looking for either an investment property, a second-home for vacations, or one they can retire to when ready.

Over the last year, real estate sales in Naples have slowed down. For example, in March of 2005, 540 single-family, existing homes were sold. However, March 2006 saw a decrease of 31% and only 371 single-family, existing homes were sold. The reason for this, however, may be due to the increase in the median sales price rising from $430,800 to $505,800, a 17% percent increase.According to the Florida Association of Realtors, the demand for real estate will continue to have an impact on the housing prices; however, they feel the prices will eventually level out.

When it comes to real estate in Naples, Florida, an individual has many choices. From single-family existing homes to luxury homes, there are many available. If you need a five-bedroom, three-bath home with a swimming pool and sauna, you’re sure to find one in Naples. Can’t afford luxury real estate? There are many mobile homes on the market, as well. You can also find land available in Naples, as well. The fact is real estate in Naples, Florida is available and it is selling and the experts feel it will continue to do so.

If warm sunshine, sandy beaches, and upscale shopping are the kind of place you would like to live in, you’ll want to contact a real estate agent in Naples, Florida. They will help you to find real estate in Naples that matches your criteria for living. From condominiums to single-family existing homes and luxury homes, real estate is abundant in Naples, as many are trying to take advantage of the demand. Don’t be left out in the cold – find your home in the sunshine of Naples today!

7 Things You Should Know About the NYC Luxury Real Estate Market

1. You DON’T have to spend a ton of money. (Relatively speaking.)
Plenty of strategies exist for those who want to purchase NYC luxury real estate but don’t want to spend an exorbitant amount of money. One way is to purchase a unit in a lower floor of a luxury building. A second floor unit can cost as much as 19% more than a comparable unit on the first floor. Another option is to seek units with higher maintenance or common charges per month, as those often have lower asking prices. Alternatively, some lines in a building can carry a higher price tag than others… for instance, a unit line with windowed bathrooms will fetch much more on the open market than a line whose bathrooms are lit only by fixtures.

2. Get Bank-Approved.
If you need a mortgage to purchase a NYC luxury real estate property, you will want to get a mortgage approval letter from your bank stating the amount of mortgage loan for which you are approved. Savvy sellers can legally tell their brokers to only show properties to buyers who are “bank-approved.” A bank qualification letter is not the same as an approval letter, and will not qualify you to see a property under bank-approval requirements.

3. Know Your Terms.
In the real estate industry, “terms” refers to the stipulations under which money is given. For cash-closers, this relates to among other things, how many days needed to close. For mortgage holders, it refers to your percentages for interest as well as time needed to obtain the funds from the bank and transfer them into the appropriate ESCROW account. In a real estate transaction, terms are equally as important as cash, because they dictate to sellers under what conditions they will get to recoup their original purchase price. If you know your terms inside and out, it will make it easier for your broker or agent to negotiate with sellers for you.

4. You CAN do your own research, and you probably should.
According to the National Association of Realtors, 88% of individuals start their real estate search online. In New York City, home of the savvy shopper, over 90% of buyers and renters start their search online. The importance of doing your own research is to be ahead of your competition – other ready, willing and able buyers. Each NYC luxury building has its own rules for purchase and its own amenities to offer. Each area of Manhattan has its own disadvantages, quirks and advantages. And not every real estate agent or broker is equal. You will want to some conduct some preliminary research in order to stay ahead of YOUR competition – other ready, willing and able buyers. Which brings us to our next point…

5. Competition IS fierce.
You’ve probably heard this adage before in regards to the NYC Rental market: bring a bank-certified check with you and be ready to close on a rental unit you like as soon as you see it, because the next person to see it might just snag it from under your nose. Similar fervor applies to the NYC buyers’ market, especially for luxury NYC real estate. International all-cash buyers are most likely your strongest competition in the NYC luxury market. They can walk right in and say “I’ll take it,” and cash buyers can close in as little as two weeks. Know your own financial situation, and know just how quickly you are ready to move on a property you like. The ability to quickly move into ESCROW will give you a significant advantage against other buyers.

6. You NEED a competent broker.
Just because a property falls under the luxury umbrella, does not necessarily mean that it is problem-free. Structural problems such as improper weight baring pillars and roofing issues, evidence of water damage and mold, or piping and HVAC problems are just some of the problems one can find in any property. That is why it is integral that one conducts a home inspection before signing on the dotted line. Most importantly, make sure your contract for purchase includes a home inspection contingency, i.e. a statement that permits you to freely walk away from the property if the inspector finds a problem with it. A competent broker also won’t waste your time or their own by showing you properties that aren’t satisfactory.

7. The NYC Luxury Real Estate Market never really dipped.
The New York City real estate market is a market unto itself, comparable to none other in the United States. It plays by its own level of supply and demand rules. International demand for NYC luxury real estate continues to be one significant reason why Manhattan prices are so high compared to other areas. REBNY reported that 2012 was the most successful year (over $30 billion in property sales) for NYC real estate since 2008. REBNY also reported that broker confidence in the market has been higher in January 2013 than in any month of 2012. Sales numbers across most brokerages point to the fact that we are continuing to trend towards a sellers’ market, as sellers and co-op boards continue to be able to pick and choose among a pool of possible buyers. Know that the NYC luxury real estate market is not depressed by any means and factor this knowledge into your approach to purchase.

First Quarter 2006 Miami Real Estate Analysis

Alex Shay, an experienced real estate broker associate in Miami, analyzes market conditions and a changing real estate climate in Miami Beach, where luxury waterfront properties have been in high demand for years.

What’s happening in Miami? It’s a question that is asked over and over again. Sellers want to know; and buyers want to know. We’re talking real estate, Miami Beach luxury real estate, to be exact. This is an analysis of the first quarter, which should give you a feel of the real estate climate and marketplace in Miami Beach during the first 3 months of 2006.Do you want to know what’s happening? According to Alex Shay, the best way to describe it is, resistance. It’s a word that Realtors don’t like to hear, but that’s what has been happening. Sellers are keeping their asking prices up, and buyers are resisting. Sellers feel that the number of luxury homes in Miami Beach is very limited, and that the demand is high, and buyers are refusing to pay the prices being asked. “We are experiencing a bit of a standstill in the Miami real estate marketplace”, says Alex Shay, and the result is that there far more luxury waterfront properties on the market now, than there were during the first quarter of just one year ago.

For example, in discussing Miami Beach real estate, including Indian Creek Village, and Bal Harbour, changes are taking place. Last year, during the first quarter, there were 29 closings of listed luxury waterfront properties, as compared to 24 closings during the first 3 months of 2006. However, last year during the same time period, there were less than 90 listed luxury waterfront homes as compared to almost 200 luxury homes that are presently listed on the market for sale. That in itself should tell you that the Miami real estate marketplace has shifted, at least temporarily.People want to know will happen in the future, but a crystal ball has not been found. Alex Shay does have opinions, however, as well as a great deal of experience in the luxury real estate market, and although he doesn’t pretend to be able to predict the future, he says that the demand for luxury waterfront real estate on Miami Beach remains high. Miami is an international city, and the only place in the USA, where the weather remains warm all year round. That makes Miami a very desirable place to live and to own real estate, especially luxury real estate. People come to Miami from all parts of the globe, and some of those people see the investment opportunities that this wonderful city offers. They buy property. For that reason, the demand for real estate is high, and will probably remain high in the foreseeable future. Owning Miami real estate is most likely going to mean that you will be “sitting pretty” at the end of the day. Prices have not gone down in many years, and because the amount of international travel has increased dramatically over the past 20 years, people will continue to purchase Miami Beach real estate. What does it all mean? In Alex Shay’s opinion, it means that although there is presently a temporary standstill, in so far as buyers resisting the high asking prices of sellers, things are still looking good.

Closings of luxury Miami real estate are still happening, and will continue to happen. If a buyer is astute, and allows him or herself, to become well educated in the real estate marketplace, that buyer can make a good deal, and within a few years time, may thank his/her lucky stars for having the courage and willingness to take a chance. A few years ago, buyers would sometimes complain about the high prices. That was when you could pick up a luxury waterfront property, for $500,000. Today that same property may be valued at more than 5 times what it was worth then. Therefore, if you can buy a luxury property on Miami Beach, and get a fair deal, do it. Don’t hesitate. “You wont be sorry”, says Alex Shay. He points out that he has yet to find anyone who said that they were sorry for purchasing Miami Beach property.

Miami is not a city located somewhere in the USA where people merely buy and sell property because they are able to afford more, or because they are downsizing. It’s not a place where only people who live here, buy property. It’s a city where people from all over the world buy and sell, so, unless some unknown disaster strikes, almost anyone buying Miami Beach real estate, is going to be very glad they did.One last thing that should be mentioned is that those who are interested in luxury real estate are not hesitating to purchase a home because of negative economic conditions. It appears as if the economy is fine at the moment. They are hesitating because they don’t know what to do. No one wants to make a bad deal, and no one knows what the future will bring.

They approach Realtors in whose opinion they have some faith, and ask the age-old question; will prices go up or down? In the near future, they won’t go up much, or down much. What can be said is that prices of luxury waterfront property on Miami Beach, have stabilized.

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The Distinctiveness of Scottsdale Luxury Homes

For those who desire the look of elegance, Scottsdale luxury homes are good choices to make. Choosing a Scottsdale real estate agent that is experienced with the availability of luxury home availability in Scottsdale is a good start toward owning Scottsdale luxury real estate. With many options from which to choose, Scottsdale luxury real estate agents can assist you in your search for the perfect luxury home. The availability is hampered only by your personal choices, but you will find plenty of Scottsdale luxury real estate to meet your specifications or that can be designed to your specifications.

A potential buyer will find an enormous selection of Scottsdale luxury homes, and regardless of your preference, Scottsdale luxury real estate agents will be able to match you with the perfect home. Conducting some online research will give you an idea of what is available from Scottsdale, Arizona real estate agents are offering to potential buyers of luxury homes. You will find such amenities as outdoor salt water pools, indoor theaters, and entire wings for the children that include a living room just for them, and much more. Using your imagination and ingenuity will help you find Scottsdale real estate that is customized to your individual needs and preferences.

You will find Scottsdale real estate in many different sizes and styles contingent upon the exact area and price range you seek. The more flexible your budget is, the easier it will be to find your perfect home from among the many Scottsdale luxury homes. In order to locate the largest selection you should utilize the services of a Scottsdale real estate agent who is familiar with all of the many luxury homes available in the Scottsdale area. If you attempt to conduct a search on your home, you may not find all of the available Scottsdale luxury homes since even online selections are rotated from time to time to allow the publication of new listings.

When you are working with a Scottsdale real estate agent you can state your preferences in Scottsdale luxury homes. This prevents you from having to look through all of the available homes, thus limiting the time you have to spend with a real estate agent locating a selection of homes you wish to see. This process of elimination saves time for you, the realtor and the seller thus leaving more time for you to view only those homes you will be more interested in owning. There is an abundance of luxury Scottsdale real estate for qualified buyers in many distinctive styles with an array of amenities to go along with it. The right Scottsdale realtor can help you make the choice that is right for you and your family.

Short Sales and Luxury Homes and Estates

Most people know that Scottsdale, Arizona as an upscale area where you will find lavish, elegant homes. Short sales have become popular over the past few months, due to the economy and housing market. What does this mean for you, as a buyer? You can get a home that was most likely beyond your price range previously. When you are dealing with this process, having a certified, reputable and experienced realtor helps make the negotiations much quicker and seamless.

Why would homeowners be selling their homes for prices that are affordable? The economy has caused many people to lose their jobs, and all over the country people are having financial hardships. This happens, even to the wealthy! They find that they cannot pay their mortgage, and don’t want to face foreclosure. In Scottsdale, finding a short sale home can mean that you get a lot of house for your money!

An Arizona real estate agent who is certified and experienced in this area can help make what can be a lengthy process much simpler. Why do short sales have such a bad rap? Because it can take a long time, and you are dealing not only with the seller, but their lender and agent as well. When you determine how much you want to offer for the home, the bank makes the decision on whether it is an acceptable amount. This can all get exasperating, but a good agent will represent you to insure that everything runs smoothly.

Foreclosure not only ruins your credit, it can also be very humiliating for some. Those who live in the Scottsdale area are people too, and bad things can happen. When tragedy strikes and a homeowner can no longer afford their home, they must take action. Short sales help them get out from under their mortgage, without completely destroying their credit. While it is a sad situation, it is the chance of a lifetime for a buyer to get a beautiful, lavish home at a steal!

If you are considering purchasing a home in the Scottsdale, Arizona area, you would be well advised to have a highly qualified real estate agent help you locate available homes. One who knows the area and what you are willing to spend can help you find a great deal, and make the transaction much less stressful and confusing. Short sales, when handled properly, are a wonderful opportunity for a buyer! Don’t let the opportunity slip away from you.

Why Now is the Ideal Time to Invest in Luxury Real Estate

Now is the ideal time to invest in Miami realty because there are so many homes on the market, including luxury estates, that are priced below the market value. The housing boom that hit Florida in the 1990s caused an influx of supply to the area. When the market declined in recent years, the supply remained but the demand declined as well. As a result, there are luxury estates in Southern Florida, especially in the Miami area, that are priced reasonably and are ideal for those who are looking for a long term investment.

One of the best aspects about investing in property is that it is a tangible investment. Unlike stocks, real estate is something that you can actually use. You can live in your home in Miami, lease it to others or keep it as a winter retreat. As shelter is a basic necessity in life, real estate is something that you actually need, unlike stocks, which you do not really need at all. This is what makes Miami real estate such a good investment over the long term.

When you are investing in real estate, however, you want to be sure that you stay away from blighted areas. These areas may be cheap, but usually do not appreciate in value over a period of time. You want to purchase real estate in areas that are high end, such as those in and around the Miami area. When you purchase a luxury property in the Miami area, you are guaranteed a good long term investment. When the price of the homes begin to increase, as they have always done throughout history, the high end market is the area where they will increase the most. This means that when the market picks up in the Miami area, you will be sitting on Miami area real estate that is worth a lot more than you paid for it.

Any financial counselor will tell you to buy low and sell high. Now is the time to buy low when you are looking for luxury property in the Miami area. You should purchase this property now, before the rebound begins when it comes to home value appreciation, and then sell once the market begins to boom again. The property market, just like the stock market, has peaks and valleys. The trick to making money in the real estate market is to buy during the valley and sell during the peak. However, when you purchase luxury Miami real estate, you can not only have an investment that will eventually earn you money in years to come, but one that you can also enjoy in the mean time.