Top US Cities for Luxury Real Estate Investment
Aug 19, 2014 01:12AM ● Published by Erin Frisch
When it comes to real estate investment, the adage is still true-- location, location, location. Asset management company Candy & Candy recently released the 2014 Global Prime Sector report. This document, produced in collaboration with Deutsche Asset & Wealth Management, highlights the best locations for luxury real estate investments throughout the world. In a list that included Hong Kong, Dublin and Tel Aviv as alpha cities or rising stars, three U.S. cities made the list.
Miami boasts beautiful beaches, even more beautiful people, and Cuban coffee on every corner. According to the Miami Association of Realtors and Miami-Dade County, the labor market is showing meager growth but the real estate market has high growth momentum. This means that you will be able to employ workers for your investment properties in Miami and be assured that the property maintains value as an asset. Like the people, Miami homes have a unique flare. Frequent rain and high humidity make some remodeling elements like carpeting impractical. Remodeling a property will bring in greater sales or rental dollars, assuming that you make smart remodeling decisions. Laying chic tile that captures the mood and eccentric atmosphere of the open indoor to outdoor home style of Miami is a smart investment to make. Doing this can give you a return on your investment of 100 to 200 percent.
The Windy City made the list as one of the twelve rising stars in the world. The Chicago Sun Times reports that the real estate market is slowly improving but the progress is very uneven over the area. The greater Chicago area is expansive and, according to the National Association of Realtors, is the most active real estate market in the nation. Home of the Bungalow architectural style, many homes in the area need to be updated without losing their historic appeal. Updating or adding a bathroom, even if it means converting an attic, almost always results in a positive ROI. Also, minor improvements like installing weather resistant windows will be recouped at sale in a market such as Chicago.
An Alpha city is one that has the teeth and stamina to lead the pack, and the Big Apple made the Candy & Candy list as one of them. With an average list price of just under $3 million, New York City has the highest real estate prices per square foot in the nation and is second only to London in the world. At that price point, almost anything that you do to improve the property will increase your return. Like most of the nation, bathrooms and kitchens are the best parts of the property to remodel. If you are remodeling for investment purposes, remember that not everyone shares the same tastes. A kitchen remodel needs to retain the flavor of the house while appealing to most people. Stylish but neutral upgrades work best for resale, especially if they can be easily modified by the new owner. During the construction process, picture your remodel as the background and let the decor change the visual landscape of the room.