6 ways to maximise your ROI in luxury property - Tips and strategies for investors.

Investing in luxury property can be a lucrative endeavour, but it requires a great deal of research, planning, and strategic thinking. Maximising return on investment (ROI) in the luxury real estate market means identifying the right properties, implementing the right upgrades, and working with the right professionals. Here are some tips and strategies for high-end investors looking to make the most of their luxury real estate investments.

1. Identifying the Right Property

One of the most important steps in maximising ROI in luxury property is identifying the right property in the right area and/or estate. This requires a thorough understanding of the local real estate market and a keen eye for detail. 

High-end investors should look for properties that are in high-demand areas, have unique architectural features or amenities, and are located in desirable estates. This may include several factors that we will provide more detail for below.

Some estates are even investing in massive power banks and storage facilities for the long hall. Read more: Top estate invests R200 million in backup storage 

2. Solar/Backup Power Solutions

In recent years, South Africa has faced a significant energy crisis due to various factors, such as ageing infrastructure, insufficient maintenance, and inadequate investment in new power plants. This has resulted in frequent power outages and load shedding, which has had a severe impact on businesses and households alike.

As a result, many buyers in South Africa are actively seeking alternative solutions to reduce their reliance on the national power grid. Incorporating solar or backup power solutions into luxury properties is an excellent way to address this issue and make the property more appealing to potential buyers.

Read more: South Africans are moving off the grid

3. Managing Renovations and Upgrades

When selecting upgrades, it's essential to focus on those that provide the most significant return on investment. For example, upgrading the kitchen or bathrooms, adding a swimming pool or outdoor entertainment area, or installing energy-efficient features can increase the property's value significantly.

However, it's important to balance the cost of the upgrades against the potential ROI. Some upgrades may be more expensive than others and may not necessarily provide a significant increase in the property's value. 

Additions such as jacuzzis or inbuilt aquariums are nice personal touches. However, the average buyer may see these as a maintenance concern. Investors should carefully consider each upgrade and weigh the potential ROI against the cost to determine which upgrades are the most worthwhile.

4. Creating the perfect listing

Creating a compelling listing is crucial when selling luxury properties. Investors should work with experienced Property Practitioners and photographers who can capture the property's unique features and amenities in the best possible light. The listing should be designed to appeal to the target buyer demographic and highlight the property's most attractive features.

Other strategies, like property staging or preparing a property for sale by strategically arranging furniture, décor, and other accessories to showcase the property's best features, can create an inviting atmosphere for potential buyers. 

5. Choosing the right time to sell

Timing is a critical factor when it comes to selling luxury properties. To maximise the potential return on investment, investors should carefully consider the current state of the local real estate market and choose the right time to sell.

This may require waiting for market conditions to improve, such as a shift towards a seller's market, where demand is high, and inventory is low, or timing the sale during a peak season when potential buyers are more active.

In addition to timing, investors should also have a deep understanding of the local market and the needs of potential buyers. This includes understanding what features and amenities are most desirable to buyers in the area and what marketing strategies are most effective for reaching potential buyers.

6. Working with the Right Professionals

Investors looking to maximise ROI on luxury property should work with the right professionals throughout the entire investment process. This includes experienced Property Practitioners, designers, contractors, and lawyers. These professionals can provide valuable guidance and advice to help investors make the most of their investments.

By following these tips and strategies, investors can make smart investments and maximise their returns in the luxury real estate market.

Contact Ikonic Real Estate today.

For Real Estate professionals you can trust and rely on for industry-related expertise, contact us below for more information.

If you are looking to live in Silver Lakes Golf and Lifestyle Estate, Silver Stream Estate, Lombardy Estate & Health Spa, The Ridge Estate, Six Fountains Estate, or Willow Acres Estate and surrounding areas, then Ikonic Real Estate is your preferred property practitioner to assist you in all aspects of the selling and buying process.

Office Number: 083 452 5599
Cell Number: 083 452 5599
Email: martin@ikonic.co.za

Ikonic Real Estate holds a Fidelity Fund Certificate issued by the Property Practitioners Regulatory Authority.