Selling Luxury Real Estate
investing in luxuryReal Estateis often a good long term bet, but beware the short term losses. It is clear that luxury Real Estate are depreciating but no one knows where the bottom of the market will be.
Many expensive Homes have devalued by as much as 20% over the last year, particularly in places such as Dubai. Dubai high end Homes have dropped more than any other market, and the market is now being flooded with luxury Villas for sale in Dubai.
The New York luxury Property market is also suffering staggering losses and devaluations. No one seems to know where the bottom of the market will be.
Genuine high end Property will always increase|apprecieate|go up in value} over the long term, but if one is highly leveraged, there exists a strong risk element to investing in these areas. Particularly given the current economic crisis.
Sensible investors Are shying away from Condos as an investment, waiting to make money out of the housing crash when they perceive bottom has been reached. Where his will be is anyone’s guess at the moment. But the sensible course of action at the moment is to “wait and see.”
Perhaps the most worrying recent events are the fact that there seems no end in sight to the amount of banking losses and the governments seem intent of pouring vast amounts of money into the hole created by the sub-prime mess.
Playng a waiting game also has risks, especially with interest rates at all time lows around the world. The only country offering higher interest rates seems to be Lebanon and India at the moment. A different kind of risk involved there.