Margot Larkin, Assistant Vice President and Mortgage Office from Gibraltar Private Bank & Trust, recently commented on the emerging trends towards luxury real estate, which she claims is always the first asset to be super-sized, ultra-designed, and updated with the latest technology and trends.
Design and Layout
Today's high-end luxury residences are brimming with amenities never dreamed of years ago. "Smart" homes have been the rage for a few years, but now you can "call" your residence and pre-set the temperature, lighting, television, and more.
Partners wishing to live without bumping into each other began with designing separate closets. Now, the trend continues with separate master bathrooms, personal offices, garages, and even special purpose rooms, ie, card room or meditation space, media room or library.
Kitchens are multiplying. Mini-kitchens are appearing in the master bedroom or family room, and larger residences are using special catering kitchens.
Many luxury residences now also include elevators, guest cottages, gardening sheds, fountain courtyards, wine cellars, all designed to complement the owner's personal lifestyle.
Buying New Construction
Because so many owners do not want to wait the years it takes to design opulent custom estates from scratch, high-end buyers are looking at luxury spec residences. Spec estates in the million-dollar-plus niche often offer many of the extraordinary design elements without the wait time to move in.
Note that builders in this market are often happy to make changes to a spec residence to meet the requirements of buyers, but not without cost. Remember when buying a spec residence that every change will add to the bottom line. Always ask the builder for an estimate before signing any change orders. And, warranties are another benefit of purchasing a new home from a reputable builder.
Pay Cash or Take a Mortgage?
It depends. As the economic pendulum swings to and fro, so does the decision to pay cash or obtain a mortgage. In years past, clients often wanted higher loan-to-value ratios on purchases to utilize their cash in other areas.
Given current market conditions and increasingly savvy consumers, buyers are now putting more money down, because they know with a lower loan-to-value they can get a very aggressive rate and maintain tax benefits. Today's high net-worth buyers always weigh these two options, however, and end up deciding the best alternative is to take advantage of low interest rates and the tax break.
Home Number 1, 2, 3 . . .
Second and third homes are one of the fastest growing purchases among the affluent, especially with high, net-worth retirees and executives who travel frequently for work.
Managing these multiple properties has hatched a new industry of concierge "house sitting" companies. Families who own homes in multiple states would be wise to review their insurance and estate plans annually to ensure the laws of each state are incorporated appropriately.
Today's wealth creators are also helping family members buy primary residences. For example, Gibraltar Private has financed several homes and condos for aging parents and adult children of clients. These clients are comforted knowing their parents or children are secure.
If you'd like to learn more about available luxury properties in Fort Lauderdale, please call me, Julie Jones, at 954.328.3665. Margot Larkin will be happy to answer any questions concerning residential lending needs. Call Margot at 954. 609.9784, or email Margot at MLarkin@gibraltarprivate.com.
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