The Boston luxury real estate market is linked to the national and even global economy. It has it’s up and down cycles, just like the financial market. However, once the Boston luxury homes market goes through its down cycle, the prices soar two or three-fold during the recovery cycle, as we have experienced locally.
Based on real estate trends, savvy buyers of high priced Boston luxury homes or condominiums are wise enough to buy their home for their future move. There are many families who are not ready to leave their suburban homes either due to children still in school or a variety of other reasons. However, they know that at some point in the relatively near future, they would make the move into the city.
We are seeing many such buyers investing in high end luxury properties and renting them out for a couple of years before they are ready to move. Rent doesn’t always cover the cost of carrying such Boston luxury homes, but looking at rising real estate prices and shortage of supply, this is a smart move. These investors have the foresight to buy something they like now rather than paying higher prices later for the same Boston luxury real estate in the future. Their motto is “buy what you like now and move in later.”
The annual price hike in Boston proper for luxury homes is higher than the increasing rate in the suburbs. Luxury homes cost 15-20% more today that they did two years ago, so the buyers who bought then are already ahead. It’s a question of simple math.
This scenario may not work for everyone financially, but if it does, it is a smart approach to acquire a property that is ideal for you and your family. Planning ahead is a great decision.