When you want to love where you live, study the real estate market and the various types of properties you can invest in. Some people want raise their families in a big home with a backyard – and this would make single-family homes their best bet.
You may also have your reasons for choosing fixer-uppers, townhomes, or duplexes. For many, the penthouse is the property to purchase once you know you’ve arrived.
The ritziest penthouse can cost as much as $30 million today. If you’d like to purchase your dream home, you need a realistic game plan. Keep reading to learn more about shopping for penthouses if you’re in the market for a new home.
What Are the Benefits of Investing in Penthouses?
If you’re going to buy a penthouse, you need to become familiar with all of the benefits it brings. But first, what is a penthouse?
It’s a luxury apartment or condominium property, typically found on the top floor of a building. Consider the benefits you’re opting into when buying a penthouse:
1. They’re the Epitome of Luxury
Most people choose to buy a penthouse because they appreciate the finer things in life. You’ll wake up and go to sleep in luxury every day of your life when you live in a penthouse.
Here are a few of the luxury features that you’ll enjoy when you live in a penthouse unit:
- Stylish architecture and open layouts from the world’s best designers
- Rooftop amenities and community gatherings
- Access to pools and hot tubs
- Fountains and other fixtures
- Direct elevator access to your home
- Butlers, dry cleaning, and concierge service
- Mail service, fitness centers, and business services
Five-star hotels will pale in comparison to the pampering you feel when you live in a penthouse.
Living in luxury of this level will help you keep your stress low, which is excellent for your mental and physical health. These benefits will keep compounding over the next several years.
2. Penthouses Are Located in Desirable Areas
Penthouses are typically located in major cities. They’re common in places like New York City, Los Angeles, Chicago, and San Francisco. Major cities aside, penthouses are also generally found in the most desirable areas of town.
Developers often place them in neighborhoods that are well-established, historic, up-and-coming, touristy, or where major business is conducted. There’s always something to do, sometimes well into the night.
Penthouses also provide an amazing view, plenty of natural lighting, and fresh air due to balconies and roof access.
3. The Property Values Remain High
But are penthouses good investments? The answer to this is a resounding yes!
They’re filled with quality features, often renovated or brand new, and are in close proximity to the best areas of town. For these reasons, you can count on penthouses retaining value. Buying a penthouse gives you a return on investment (ROI), which is essential for any home you buy.
How Can You Shop for a Penthouse?
You must know the steps before purchasing a penthouse. Going into the process informed will help you get the equity and luxury that you desire
Here are some steps you should consider:
1. Scope Out Some Penthouse Listings
Map out your vision for a dream penthouse, but make it a reality by actually visiting some properties. Scope out listings for penthouses in the area, and have some must-haves and deal-breakers in mind as you shop around.
You might consider the following:
- The number of bedrooms and bathrooms
- Square footage
- Fixtures like skylights, crown molding, and eco-friendly appliances
- Decorative fixtures and layout
- What’s included in the homeowner’s association (fee) membership
Use this site as a measuring stick to understand what you can get when you invest in a penthouse.
2. Get Your Financing and Credit in Order
Before purchasing a penthouse, you need to know where your finances stand. Calculate your income and debts to learn how much you can afford. Look into your credit score to find out what kind of rates you can expect to get.
Read through the terms of the mortgage to make sure that you’re charged fair interest rates and that you’re completely clear on the terms of the contract.
Set aside a nice down payment on the property to lock in the best deal.
3. Work With Professionals
Do your due diligence by putting some professionals to work on your penthouse purchase. You’ll need the help of professionals like certified public accountants (CPA), real estate attorneys, real estate agents, and home inspectors.
They’ll go through every contract and move the purchase timeline along. These professionals will help you through all of the major steps of purchasing your first penthouse, including:
- Make a formal offer and working through counter offers
- Handling title searches and escrow
- Going through the closing process
Verify every major detail and choose professionals that are vetted and excellent at what they do.
Investing in Penthouses 101
As you can see, investing in penthouses can be a great investment idea and upgrade your quality of life. Whether this is your first home or your upgrade to help you enjoy the fruits of your labor and expertise, these tips will get you started.
Start developing a shortlist of the best penthouses, and make sure that you visit every one of them until you find a great deal. Set a deadline for your goal and put these tips to use in earnest.
Check out some of our other articles when so that you can learn more about real estate investing.