If you drive down the road in growing residential areas, you’ll often find a cluster of new developments going up that have “Luxury Apartments” or “Luxury Homes” plastered on the construction banners.
If you’re like me and wonder “how is that luxury?”, you’re not alone.
The term “luxury” placed before a real estate related word has been thrown around for a long time, but it almost seems to be more common now than ever before.
In this article, we’re going to go over what actually determines a luxury home from a non-luxury home.
Perhaps the easiest way to determine luxury real estate is to take a look at a home’s price.
The entry point for luxury sales is different in every market. For instance, in my markets of Asheville and Charlotte, NC. The entry points are $800,000 and $850,000 respectively.
In New York or LA though, $2 million might not even be considered luxury real estate. $2 million in New York might buy you a 2 bed/ 2 bath condo in an unfavorable location.
The price depends on your market. But, for the most part, home sales above $1 million for most regions would be considered luxury real estate.
Key Features of Luxury Homes
Luxury homes are the premium of premiums when it comes to living well.
Most share common features that help determine their high price and ultra-quality lifestyles.
The features I’m about to list aren’t requirements for luxury real estate, but they’re a good indication.
- Wine Cellar
- Bar Area
- Fitness Center
- Indoor/Outdoor Pool
- Home Theater
- Custom Fireplaces
- Luxurious Interior Design (an extremely vague way for me to put it)
- 3-Car Garage+
- High Square Footage
- Fully Equipped Kitchen
- Built-In Firepit
- A View
- High Acreage
- Security Features
- Smart Systems
- Private Driveways
- Large Outdoor Spaces
These are just a small number of features I can come up with, but I can assure you that the list goes on.
Luxury Homes are Usually Custom
Customization increases property value because of rareness. Just like how rare trading cards carry more value, luxury real estate plays out the same way.
A home designed by the genius architect Frank Lloyd Wright is something considered rare and unique, not to mention created by one of the best architectural minds in history.
That alone makes the property value skyrocket.
But your home doesn’t have to be designed by Frank Lloyd Wright to sell with a high price tag. In fact, most luxury homes are custom anyways, which makes your property value already that much higher.
Therefore, those “luxury” developments we talked about in the beginning.
Yeah, they probably aren’t one-of-a-kind which a good reason for why they shouldn’t be labeled “luxury”.
Location will always matter.
Luxury real estate, as you can guess already, is located in the best neighborhoods imaginable.
Neighborhoods that feature amenities such as its very own golf and country club, fitness centers, gated communities, landscaping services, homeowners’ associations (sometimes to be desired), and private security.
Of course, these amenities come with a cost (usually paid to the HOA) but are generally well worth it.
In the larger scope of location, often luxury neighborhoods are positioned in areas with the best views, commute times, and the highest density of growth and development.
The best example I can think of is in Asheville.
Biltmore Park is a highly desirable area just South of the city. It’s basically a gated mini-city, filled with a Hilton Hotel, movie theater, YMCA, shopping strip, and various services.
As you could imagine, Biltmore Park was built with luxury and convenience in mind. The homes in the area are beautifully designed, the streets are well kept, and the ambiance is relaxing. Naturally, the prices in Biltmore Park are high as well, with some homes being listed for more than $1.3 million dollars.
It’s one of the hottest areas in Asheville and it’s primarily due to location and amenities.
While there are many things that determine whether a home is in the luxury tier or not, it’s easiest to keep in mind the four factors we went over.
Price. Features. Custom. Location. (PFCL if we want to sound cool).
So next time you drive past one of those “luxury” apartment complexes, take a second to think about where you are, what they look like, and their price.
Then you can determine whether they’re luxury homes or not.