The industry of real estate covers a vast spectrum of property types and nature. Commonly the real estate business is divide into three types: residential, commercial and institutional properties. Residential real estate is the most sought business, and it is divided further into two segments of properties.
In residential properties, you will find luxury real estate and a regular segment of real estate.
The features that create a distinction between two include space, design, location, market value, and bidding.
Understanding the difference between luxury and regular properties can help develop a better perspective on real estate investments. Once you understand the difference, you ask your Real Estate Agent Queens NY to look into specific investment and purchase properties.
One of the most prominent features and the difference between luxury and regular real estate segments is the location and neighborhood. The luxury real estate is established in the upscale areas of the city, suburbs and islands. You can spot the luxury real estate properties neighborhood from afar. These neighborhood are a perfect match for residence looking for a spacious and quiet area and community regulations.
Since the regular real estate properties are developed for the floating population, demanding on the neighborhood, these properties has a compact location connected to several commercial areas and main roads.
Luxury real estate in an upscale neighborhood offers excellent returns as a performing asset. Once the resident has moved in rental value of luxury properties, it can go as high as 40% premium for owners compared to the regular segment properties.
As compared to the traditional stuff, the luxury real estate segment has more volatility with prices fluctuations. On the downside renting luxury property takes longer than unless it is built in the most demanding suburbs.
On the other hand, regular real estate properties are in continuous demand by the middle and salaried class individuals for rental. The standard segment of the real estate market offers a consistent rental income. During most of the season, the regular and mid-segment real estate property has steady and attractive prices.
The closing of the property contract is slightly different when it comes to the two segments of the real estate business. The investors of luxury real estate properties are required submit several kinds of security deposits, bank statements, list of assets and income tax return etc. Basically, to buy luxury real estate you have to prove that for a minimum of six to a year the owner can afford the mortgages and down payments.
To secure a luxury real estate property, you need an agent to get every document approved and finalized through the extensive procedure. Whereas, investing in regular real estate property is much easier and faster comparatively. You will be required only a few verification documents, and voila you are the owner.
One of the reasons luxury real estate tops the market value is amenities and security that comes with the exquisite design of the property. Luxury properties often have their security system and measures in the neighborhood. These properties also come with inbuilt security systems in the house, including space for hidden cameras, in-build vaults, intercom, and other modernized technologies introduced in the market. One of the trademarks of luxury real estate properties is an extremely spacious neighborhood that allows comfortable expansion of the houses. Since you the residence has a lot of space, there are endless possibilities for amenities, including private rooftop pools, theatre room, private gym and spa, coolers, etc.
You can find most of these amenities already manufactured and maintained in the luxury real estate properties.
On the other hand, regular segment properties are compact units and offer little or no space for additional amenities. Most of these properties do not provide any neighborhood security or in-build security system. Some of the standard apartments offer mutual gym and pool amenities and an intercom at the main entrance. Manufacture and maintain any desired comfort will be your responsibility, and depending on the neighborhood, you might not receive the market value you wish even with modern amenities.
Although the luxury real estate design is exquisite, some of the primary compartments include attics, basement, servant quarters, spacious garage, etc. luxury real estate properties are recognized for their vintage appearance. Here you can find properties belonging to the 50s and 60s in right conditions, with minor or no need for the renovation. Luxury real estate properties in a manner are preserved for generations. In this segment of real estate, either you find new and modernized structures or entirely vintage.
Whereas, the standard real estate properties are similar to most properties around the block and across the state. The bestselling point of standard real estate properties that you renovate the interior with modernized look.
Another significant difference between both segments is the floor to height ceiling of the property. Ideally, the luxury real estate apartment’s floor to ceiling height is 12 feet and above, anything less than that is not considered a part of luxury real estate.
The features mentioned above are the factors that influence the market value of the properties in both segments of the real estate.