5 Things to Look for When Investing in Luxury Real Estate

As home to scenic and awe-inspiring attractions like Pike's Peak and the Garden of the Gods, it's no surprise that the Olympic City is one of the fastest-growing locations in Colorado. The area's range of real estate offerings provides something for everyone, but the market can be competitive, and luxury real estate is no exception. Even as opportunities increase to purchase luxury homes, it's important to understand how this investment differs from traditional real estate in the area.

A luxury real estate purchase in Colorado Springs will add a new dimension to your lifestyle. Whether investing in your dream home or seeking a way to preserve your financial future, preparation is key to a successful purchase.

Here are the top five things to consider when searching for luxury properties in and around Colorado Springs.

A property's location is one of the most important aspects of its attraction. Factors such as the home's surrounding area, access to local amenities, and travel convenience are critical to enjoying any property. It's essential to consider neighborhood growth and proximity to restaurants, activities, and shopping to gauge profitability over time. Since the terrain in Colorado Springs is diverse, and the weather can be unpredictable, accessibility to the property under various conditions is also something to explore.

Cathedral Pines, the Garden of the Gods, Broadmoor, and Briargate are local neighborhoods known for elegant homes and picturesque estates. These areas are known for spacious lots, dazzling views, and easy access to lavish local amenities and enjoyable activities. Luxury neighborhoods in Colorado Springs have various architectural styles ranging from turn-of-the-century mansions to new builds, providing investors with many options to choose from.

Luxury homes are more than big houses with glitzy features and a large price tag. They are investments that will gain value over time and be long-standing features of prestigious neighborhoods. Any home is only as good as the quality of its construction. You'll want to carefully inspect every inch of the property and hire an experienced home inspector to complete a professional inspection.

Quality construction derives from a combination of quality materials and the craftsmanship that goes into the building process. The systems inside the home should be correctly installed and adequate for the home's size. Since the weather in Colorado can be extreme, homes in the area must withstand the effects of wind, ice, snow, and damaging storms.

Luxury properties promote extravagant living, so the home's features must deliver precisely that. Modern luxury homes promote luxurious characteristics and convenience for an overall pampering experience. When your property is close to local amenities, your family and guests will have everything they desire at their fingertips.

Although lavish amenities differ from one home to the next, you should be on the lookout for popular items. A spa-like bathroom is a sought-after attribute. Look for features like a steam shower, free-standing tub, bidet, heated floors, and electric towel racks. Other in-demand components include gourmet kitchens, wine cellars, fitness rooms, and theaters. Colorado's scenery and the local commitment to sustainability make outdoor eco-friendly living spaces something to add to your list of desirable essentials.

Beyond the extravagance expected in traditional luxury homes, smart and innovative home technology enhances today's properties, taking all the hard work out of daily tasks. A well-integrated smart home system will ensure everyone is comfortable in all spaces throughout the home. Everything from appliances, window treatments, sound systems, lighting, and climate control should be voice-activated or smartphone-controlled.

Your intention for the property will define your choices for the ideal purchase. Are you investing in building your portfolio or making passive income through rental? Do you plan to live in the home full- or part-time? A vacation rental will attract different tenants than a condo for long-term occupancy. Before making a final choice, consider how the location and amenities align with your investment goals and plans. For example, it's ideal if a short-term rental property is in an area where popular tourist attractions are readily accessible.

Apart from the property's attributes, areas may be subject to different local regulations. It's essential to familiarize yourself with the local laws regarding renting and selling properties and refer to requirements surrounding taxes and other financial obligations. Your research can make all the difference between a property that meets your goals and unexpected expenses or disappointments.

Maintenance costs are another overlooked issue, varying by location and tenant occupancy. A large property with opulent features requires considerable professional maintenance, which can quickly diminish your profits. Small details can also add up. For instance, a short-term vacation rental will require more maintenance as tenants come and go frequently.

Regardless of your intentions, take the time to clearly outline your goals and determine all the factors influencing your purchase decision. 

To successfully invest in luxury property, you need inside knowledge to track the available information about properties in the area. No one knows more about local luxury homes than a real estate agent with significant experience in the luxury property market.

Luxury real estate is highly exclusive, featuring custom architecture and amenities you can't find elsewhere. These properties typically require specialized financing and are only sometimes available on traditional marketing platforms. Local luxury real estate agents are familiar with all general listings. They can match your wish list with local homes, estates, and condominiums. Their knowledge of the local market, neighborhoods, and surrounding amenities will guide you to the best investment to achieve your goals.

Buying a luxury home to build your portfolio of investments can be a complex process, but it doesn't have to be. If you're ready to invest in luxury property in the Colorado Springs area, Chad Penkhus can help. As one of the city's leading Briargate real estate agents, Chad specializes in luxury Briargate condominiums, homes, and other high-end properties and estates throughout the nearby communities. To get started with your luxury property search in Colorado Springs, contact Chad Penkhus for advice.