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Three Things to Consider When Investing in Luxury Real Estate in South Florida

Posted on: November 26, 2018

Investing In Luxury Real Estate

It’s no secret that the South Florida luxury real estate market is a fantastic and rewarding place to invest in recent years.

Savvy investors have found multiple opportunities to improve their bottom line, discover new homes, and expand their cash flow.

A deep understanding of the market is essential prior to your first investment. Meeting with a South Florida luxury real estate attorney can always help with this, along with other local experts like brokers and other investors.

Below are also a few things to consider as you plan your next investment in the South Florida luxury market:

Should You Use Cash or Borrow?

When should you borrow and when should you use cash if the opportunity presents itself? The smartest luxury buyers know that cash is king, and its leverage can be used to snag an amazing deal, like a fixer-upper condo in a prime beachfront location.

Should you strike with a cash deal and use liquid assets to buy and when can you borrow on favorable terms?

Smart buyers know what demands a cash offer and what doesn’t. They use cash or short-term loans quick approvals, to cement in a deal and get going.

It’s helpful to discuss this with a luxury real estate attorney in South Florida, your broker, and experienced investors.

Find a Growing Market

One of the most important things you can do is choose the right market to invest in. That often takes the expertise of those who have lived and worked in the market, including your broker and attorney, but in any case, you will want to spend some time to do your research.

Make sure that there is a proven demand in the market over the past few years and that it’s trending upward. That shouldn’t be hard to find in South Florida, but mistakes can happen.

Does the Investment Fit Your Goals?

Another key to consider is whether or not the investment will fit your particular goals. For example, it may make more sense to use less cash upfront and invest in non-luxury real estate for your first deal.

Meeting with a South Florida luxury real estate attorney at Schecter Law can help you make a final decision. With decades of experience in the market, we’re here to provide you with the crucial insight you need as you plan this major step.

Anyone with money can buy a luxury home. But only the smartest can consistently profit by doing so. The above tips will help you get on track.