Are there any investors on this forum that are purchasing luxury properties as long term investments? I have heard that this idea is being used by the more famous investors. Because of the recession these properties are very easily bought at cents on the dollar.
Please feel free to comment.
Nope! Nobodys saying, musta spilled the beans
Your holding costs would be high. That makes it a game for the big guys.
There are some serious bargains out there, but 2 mortgage payments on a $100 million property that I purchased for $10 million would just about wipe me out.
If you can buy them in good resort areas, right on the beach, you could probably get them to pay the mortgage by doing vacation rental with them. My friends with luxury vacation rentals say that reservations have slowed, but they are still keeping them rented full time. They used to be booked up a year in advance. Now, sometimes they don’t know who the guest will be until a week before. But they are still occupied full time.
That’s is not true of the guys I know with middle to lower class beach rentals. They have dropped prices and still have vacancies. So it might be a good time to buy the less expensive vacation rentals where it wouldn’t cost so much to hold them and ride the market out.