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One might question this notion and it actually holds a little bit of irony. The word “luxury” already gives away that whatever the product is, it is a liability. Luxury, by definition, is expensive, usually a delicacy, elegance or refinement rather than a necessity, so what makes luxury homes a good investment if its purpose is to cater to one’s splendor? 

Before we dive deeper, we must go into the core meaning of “luxury real estate” by today’s standards. 

One misconception is that the price tag is what defines luxury properties, it does not. While the price tag is a significant factor, it is not the only one. There are more factors that constitute a luxury investment house.

Luxury properties are primarily defined by their uniqueness and exclusivity, which raises its value more than the cost of the actual materials used and construction. 

For properties like these, one might also consider location – the residence’s proximity to another luxury home, to the community, and to famous and storied parts of a city all add into the value of a luxury investment. This is the case for trophy addresses such as New York City’s Park Avenue and Los Angeles’ Hollywood. 

The proximity to high-end activities also plays a role, such as how near the home and lot is to shopping districts, fine dining restaurants, museums, etc. The view and environment are factors also. Sometimes, people want views of beautiful landscapes like the lakes, oceans, rivers, and mountains. 

Another key factor that defines luxury properties is their features. Luxury homes contain the same features other homes do, but they do it on a much larger scale. Tighter security to the point of exclusion, custom architecture, interior design, foreign furniture, chef’s kitchen, and many more unique features.

All of these traits are what makes a luxury property luxurious, and it’s all of these too that makes their value skyrocket. The aesthetic of looking rich, of course, comes with a price. That being said, here are the benefits of buying a luxury home:

  1. Involves Less Risk

A luxury property type of investment does not carry as much risk as paper investments especially when investing in the long term. Equity and home prices increase over time because they’re physical assets which is unlike stocks that’s held up by a nebulous force and are prone to dropping its value anytime. 

  1. Assured Capital Growth 

Land and property never decreases in value. Instead there is a steady increase called capital growth. You’re always guaranteed that in real estate. That’s because space is becoming more scarce in the physical world, thus real estate prices rise due to the rarity of land area. 

  1. Rental Opportunities

Luxury investment properties are a prime asset to become luxury rentals. If you own a property with several of the characteristics above, then you’re qualified to liquidate your assets as a rental. There’s a huge market for luxury rentals for lease or for a couple day stays.  

Not only that, your property can also be event venues if it qualifies in that category.

  1. Tax Benefits

Tax benefits for luxury properties could exist in the form of deductions on property taxes, lower mortgage payments and interest rates, and depreciation benefits. 

  1. High Resale Value 

If your home has high-value features such as a desirable location, exclusivity, proximity to entertainment and dining areas, or has an interesting history, you’re going to have a better chance of ROI than other forms of assets. 

  1. Effective Inflation Hedge 

We already know that the value of an investment property increases overtime, and can better keep up with inflation. If your money is tied up with an investment property, your funds are going to grow along with it. It’s only going to continue to rise. This helps investors because their property will never be behind inflation. As the cost of living rises, the value of investment property does, also. 

To put it simply, inflation is a benefit or will not harm luxury property investments.

This striking 1924 Spanish home with an income-producing duplex that’s surrounded by lush and landscaped greens. This property serves as your home and a passive source of income if that’s what you’re aiming for. The garage has also been converted to a guest studio with a kitchenette and bathroom.

Exceptional proximity to prime Melrose Avenue; Urth Caffe, Restoration Hardware, Alfred Coffee, Melrose Place and La Cienega Blvd.

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This 4 beds, 4 baths, 2,927 sqft penthouse condo unit is for sale at $3,295,000

Reach out to us if you’re interested in this property or want to know if you’re qualified to purchase! 

Photo and listing courtesy of Jacob Zacuto | DRE #01377441 | Zacuto Group

And Jane Schore | DRE# 00980877 | Coldwell Banker Realty

To get in contact with us, click here.

To this property’s listing page, click here.

Check out this one-of-a-kind dynamic 2-story top-floor North/East corner penthouse condo with soaring ceilings and private rooftop deck in West Hollywood’s premier neighborhood.

This unique flex-space is currently being used as a 1 bedroom with an extra den/TV Media Room, a separate office, & a loft with its own bathroom. It could easily be converted to a 2 or 3-bedroom condo depending on the buyer’s needs.

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This 2 beds, 3 baths, 1,529 sqft penthouse condo unit is for sale at $1,299,000

Reach out to us if you’re interested in this property or want to know if you’re qualified to purchase! 

Photo and listing courtesy of Allie Joel Riley | DRE #01398467 | Compass

And Michael Collins | DRE# 00963037 | Coldwell Banker Realty

To get in contact with us, click here.

To this property’s listing page, click here.

Landon Pacific’s listing spotlight for this week is this condominium at the Pendry Residences, which is a collection of homes designed to meet discerning eyes and high standards. This unit welcomes you with your own private vestibule as you step out of the elevator. High ceilings and white oak floors lead you to the great room and a gracious size terrace to take in the mesmerizing view of the DTLA skyline and city lights.

The seller loves the building/staff/amenities and hotel access to the Britely, Sun Rose, live music and performance venue, spa, restaurants, and rooftop pool, as well as the proximity to other upscale restaurants and bars.

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This 2 beds, 3 baths, 2,393 sqft home is priced at $4,525,000.

Reach out to us if you’re interested in this property or want to know if you’re qualified to purchase! 

Photo and listing courtesy of Lytel Young  | DRE #01710150 | Corcoran Global Living 

To get in contact with us, click here.

To this property’s listing page, click here.

Landon Pacific’s listing spotlight is this Hover House 3 situated on the historic Venice Canals of Los Angeles. This was built in 2008, representing the third in architect Glen Irani’s series of Hover Houses which focuses on maximizing outdoor living environments. This is possible by structurally “hovering” the building envelope above the land to create space for outdoor living environments.

This 3 bedroom, 4 bathroom, 2 office, and 3 story home features ground-to-roof canal-facing glass flooding the living space with light and offering show-stopping canal, mountain, and city views from the living areas and secluded rooftop deck.

A property just steps away from the beach, moments from Abbot Kinney, great restaurants, shops, and all the Venice has to offer!

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This single-family home is priced at $4,195,000.

Reach out to us if you’re interested in this property or want to know if you’re qualified to purchase!

Photo and listing courtesy of  Jesse Weinberg  | DRE #01435805 | Jesse Weinberg 

To get in contact with us, click here.

To this property’s listing page, click here.

Landon Pacific’s listing spotlight is this magnificently remodeled mid-century modern in the famed Bird Streets. This home underwent a meticulous and thoughtful renovation maintaining the architectural integrity of this gem that floats above the Sunset Strip in one of the most desirable locations in the world.

The idyllic atmosphere covered in the most beautiful stones, roman clay covered rooms, herringbone floors and soaring angled ceilings is the ultimate Los Angeles dream home. This home boasts a world of opportunity for the right buyer.

Keep scrolling for a tour of this property!

This single-family estate is priced at $5,690,000.

Reach out to us if you’re interested in this property or want to know if you’re qualified to purchase!

Photo and listing courtesy of  Stefani Schmacker ‘Stolper’ & Kevin Stolper | DRE #01957452 & #02006447 | The Beverly Hills Estates

To get in contact with us, click here.

To this property’s listing page, click here.

Landon Pacific’s listing spotlight for this week is this beautiful two-story colonial home, situated in the sought-after San Rafael neighborhood, in a tree-lined street. This home featured 3 bedrooms and 2 bathrooms, spacious living spaces, a luxurious kitchen, and a beautiful backyard.

This picturesque Colonial home is perfect for enjoying premium indoor & outdoor living & taking in the Southern California sunshine! 

Keep scrolling to see more of this property!

This single-family estate is priced at $1,999,000.

Reach out to us if you’re interested in this property or want to know if you’re qualified to purchase!

Photo and listing courtesy of  Jason Berns & Laura Berns | DRE #01787757 & #01407023 | Keller Williams Realty

To get in contact with us, click here.

To this property’s listing page, click here.

Get this striking, extensively remodeled, hedged and gated 1960’s single story Contemporary in prime, North of Sunset, Brentwood location. 

Completed for the current owner by award-winning architects DESIGNARC with open floor plan, clean lines, airy, sun-filled spaces, vaulted ceilings, wood floors, rich wood paneling, walls of glass & French doors throughout.

Keep scrolling for a tour of this property!

This single-family estate is priced at $7,995,000. They’re having an Open House this July 14, Thursday, 11 AM to 2 PM

Reach out to us if you’re interested in this property or want to know if you’re qualified to purchase!

Photo and listing courtesy of  David Offer | DRE #01150357 | Berkshire Hathaway HomeServices California

To get in contact with us, click here

To view this property’s listing page, click here.

Get this this stunning, newly remodeled top-floor loft is an entertainer’s dream located in the coveted Marina Arts District. With sophisticated design throughout, this home features custom cabinetry and doors, walk-in primary closet, upgraded lighting, along with custom motorized statement drapes for the 17-foot-tall floor-to-ceiling window.

The custom speakeasy bar is the perfect place for relaxing after a long day or entertaining guests before a night out on Abbot Kinney.

Keep scrolling for a tour of this magnificent estate!

This loft-type masterpiece of a condo unit is priced at $1,350,000. You DO NOT want to miss this opportunity to own this Rustic-Industrial style unit inside Marina Arts District. 

Reach out to us if you’re interested in this property or want to know if you’re qualified to purchase!

Photo and listing courtesy of Jennifer Castaneda | DRE #01996563 | The Oppenheim Group

To get in contact with us, click here

Get this thoroughly modernized 1920s Spanish revival is located in prime Beverly Grove. Offering three bedrooms and three baths, the sensible floor plan features bright interiors and wood accents.

Gated and hedged for privacy, this retreat like home is exactly what you’ve been searching for.

Keep scrolling for a tour of this a beguiling estate. By the end of the thread, you’ll surely be in love!

This exquisite listing is priced at $2,895,000. You DO NOT want to miss this opportunity to own this Spanish-style home inside one of the most desirable areas in Los Angeles.

Reach out to your favorite Landon Pacific realtor if you’re interested in this property or want to know if you’re qualified to purchase!

Photo and listing courtesy of  Hilary Markus | DRE #01827945 | Douglas Elliman

To view more of this property, click here

To choose a Landon Pacific realtor to work with, click here

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