Real estate can be an extremely competitive and tough market to get a foot in. You’re always going to have competitors in your territory, there will always be people using underhanded tactics to overwhelm your audience, and you’re never going to beat the real estate giants that have their grubby hands on everyone’s slice of the pie. Unfortunately, that’s the reality of a competitive real estate market.
If there are only a few homes for sale then you’re probably in an area that is dominated by well-known names in the real estate sector. Other tell-tale signs include lightning fast sales that are way above average, indicating a steady increase in housing prices in your area. You may even be offered cash for your properties which is a sign that very wealthy individuals want to reside in your market. It can be a tough time especially if you’re a newcomer to the real estate industry, and it can often be extremely draining on your mental and physical health.
Realising you need to diversify your portfolio
One of the hallmarks of a successful real estate agent is to have a well-diversified portfolio. Simply sticking to a single market can get stale and although it’s possible to specialise in your area, there are many inherent risks to sticking to your guns. For example, if properties in your area inflate in pricing then it could put off many potential buyers that are looking to move into your city or area of influence. As a result, potential homeowners will look for other locations to build their futures at a more affordable price.
In addition, the types of property that you specialise in might go out of fashion due to social trends or changes in the community. If you sell and rent out cheap apartment properties, then your business could grind to a halt once your local government announces the construction of cheap apartments for families with low income. The audience you target will suddenly be taken away by government funded entities, and you’ll find it difficult to hold your ground.
The obvious way to combat this is to have a hand in several different markets. Focus on cheap apartments, but don’t be afraid to expand into expensive rentals or even commercial properties. The more you reach out, the less likely social factors and market changes can ruin your business.
Why expand into luxury properties?
An exception to the previous point is luxury property. Large mansions, holiday homes, countryside ranches or even lavish high-rise apartments are reserved for the rich and wealthy. These are the types of properties that everyone dreams of owning at some point in their life. They make it their life goal to live in luxury, and they know they’ve reached that point when they can open the door to their homes to reveal a modern, stylish and extravagant home.
Most government schemes, market trends and community changes affect the low to mid tier of housing. Very rarely do trends negatively affect luxurious and expensive housing or properties. In fact, it could be argued that trends usually positively affect the luxury home market. There could be a sudden rush to buy modern apartments in major capitals due to a development project by a wealthy property developer, or perhaps holiday homes in a certain country become all the rage.
With luxury properties, you’re almost always guaranteed an advantage over smaller sales. Admittedly there is a lower rate of sales, but that means each sale has a higher profit margin thanks to the high costs of luxury properties. Getting into the luxury market has far more pros than cons, and the only barrier of entry is to have enough money to afford your first investment. After that, you’ll need to focus on a diverse portfolio if you want to continue raking in cash and appealing to everyone with deep pockets.
Ranches
The reason ranches are popular is because of the diverse and picturesque landscapes of the countryside. Imagine rocky cliffs, long stretches of greenery, tall mountains, breathtaking rivers and nostalgic agricultural landscapes. These are just some of the ingredients that are mixed in with ranches to create a luxury, all-natural living area that comforts both your body and soul.
There are hundreds of outdoor recreational activities that will appeal to thrill seekers, creative types and also children. How about mountain biking or kayaking for some adrenaline-fueled afternoons? Or how about taking a stroll through the lush green lands to find a spot to sit down for a sketch and a picnic. Perhaps take the children to go fishing at the numerous blue rivers around the countryside near the ranch. With so many activities to indulge in, there’s no wonder that rich families are turning to ranches as a luxury holiday location.
Ranches can be difficult to find and invest in, but luckily there are services like RMA Brokers that specialise in dealing in ranches. Here you can list your property, rent it out or even invest in other properties. You can often market a ranch by listing all the nearby natural activities to get involved with, perhaps advertise hunting opportunities or even farming.
Modern Apartments
Most major cities are seeing an extension of their city skylines due to numerous skyscraper projects. This makes major cities a real estate property goldmine thanks to the combination of regular and luxurious apartments in each highrise. If you want to invest in luxury apartments, then you need to get on the waiting list as development starts. The earlier you invest, the cheaper it will be and thus the higher return you’ll see on these modern apartments.
The key here is to analyse the local area. A place with many local amenities such as popular schools, transport and dining will make great family homes. Advertise these properties with families in mind or professional couples and individuals, depending on how many bedrooms the property you own has. However, if it’s in a major city with lots of nearby tourist attractions and transportation, then it could be sold as a luxury holiday home or secondary home for a wealthy travelling businessman.
It’s important to play to the strengths of a modern apartment. Since there are so many properties of the same time in the same highrise, you have to stand out with your market listing. Consider targeting a specific niche of buyers and furnish the home accordingly. For example, if you want to make it a modern holiday home, then furnish the insides with local decorations, themes and colours. If it’s professionals you want to aim for, then advertise the fast internet speeds and talk about the local amenities and ease of travel.
Mansions
These are the most expensive properties you could ever invest in when they are furnished. However, a luxury mansion is probably the epitome of wealthy living and, as a result, you’ll get very few offers and sales but a lot of hits from curious people.
A mansion should come with all of the usual luxury amenities. Swimming pools, dozens of bedrooms, a decor to die for, a multilevel garage and perhaps a lot of extra space for future expansions or for recreation. Despite being behemoth properties that demand a lot of security and furnishing, there are many ways that you as a real estate agent can cut down on the investment cost. For starters, you don’t have to outright buy a complete mansion and sell it later down the road. You can invest in smaller properties that come with large plots of land and build up a mansion from scratch. It takes longer and you’ll need to hire contractors and designers to help, but overall it ends up being cheaper.
It’s hard to put a price on large mansions, so it might be a good idea to let the offers roll in or set a minimum profit margin that you would expect for your investment. One of the things that can really bump up the price of a mansion is to include a modern decor. Think about the best technology, fun gadgets such as a sweets dispenser, a fully-featured bar, and always consider your buyer’s guests. Many people buy luxury mansions not just for themselves, but to treat friends and family members to unforgettable experiences within their homes.
If you do get your foot into the luxury mansion industry, then you’ll be approached by many celebrities and people that are figureheads in their industry. Consider every expense and don’t skip on any luxuries. Buy the latest brand names, invest in the best quality products and furniture, and focus on creating a superb viewing experience with the help of videos, photographs and testimonials.
Final Words
Creating a luxury real estate portfolio is expensive and time-consuming. However, with the right planning and a lot of hard work (and money), you’ll be able to network with wealthy millionaires and celebrities who will be more than willing to put in a good word for you to their friends. Once you get started, it’ll be hard to slow you down.
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