What You Need to Know About the Long-Term Value of Luxury Real Estate

What You Need to Know About the Long-Term Value of Luxury Real Estate

During the past few years, the U.S. and other global economies have experienced unprecedented ups and downs. As investors attempt to regroup after these recent economic disturbances, many asset seekers wonder if luxury real estate remains a solid investment. Fortunately, there's excellent news to report. Luxury real estate continues to be a strong force amid today's recovering economic times.

Why upscale real estate is a buy

Investors typically share the same goal when they invest in real estate. The shared goal, of course, centers around increasing their net worth. While they may share the same aim, their approach to achieving it often varies, mainly due to their circumstances. It's a good thing that people have several different approaches available to help them achieve their financial objectives since flexibility is usually a plus in any financial endeavor.

A luxury home as a primary residence

Sometimes a recent seller may wonder if reaching higher in the real estate market is the best strategy, or perhaps they should remain conservative and make a lateral move. Beyond the extra joy they would receive from moving into a larger, more stately home, if another economic downturn should occur, a high-end real estate property is much more likely to hold its value than a lower-end option. As long as a buyer doesn't overextend themselves with their luxury property and can weather any possible economic low points in the future, the decision to move upward rather than horizontally should eventually pay off in the long term.

Renting a luxury property

Just as a single homeowner needs a roof over their head, so do others who aren't quite ready to own a home. It's well known that a housing shortage remains in many parts of the country. People who buy into a lucrative real estate opportunity and then work with a company to find good-quality tenants or vacationing tourists will then secure a regular source of income to make the payments on their second house. In addition, their portfolio will benefit from the increase in value of the additional property over time.

Buy now, move in later

Some people may buy a second property to use it as a retirement home eventually, or they may set a goal to eventually turn the property over to a close family member. In the meantime, the estate can be used as a weekend getaway while earning income as a vacation rental unit. Once again, this arrangement provides the owners with a regular source of income to help pay for expenses associated with owning the property. Additionally, they can enjoy the bonus of either eventually living in the home permanently or gifting it to someone.

A common thread for all stakeholders

While, at least in the short term, the dollar seems stronger than other world currencies, it has faced challenging circumstances in recent years, namely due to inflation and the interest costs associated with borrowing. Even so, real estate, especially luxury real estate, tends to hold its value, thus offering a good hedge against challenges to the dollar. During challenging times, hard assets such as valuable real estate properties have proven winners, whereas more volatile investments, including crypto, stocks, and bonds, have faltered.

Potential issues

As with other investments, even high-end real estate has the potential to experience financial challenges.

Neighborhood changes

Over a long period of time, sometimes a neighborhood that was once "up and coming" will plateau. Perhaps other nearby homes are starting to show their age. Even a well-maintained, awe-inspiring home can be adversely affected by these changes. For stakeholders, the potential for these situations to occur reveals why staying abreast of local changes and their impact on a property is important.


Luxury properties, even more so than other forms of real estate, require significant maintenance and periodic updating to preserve their exceptional appearance. Stakeholders must be willing to uphold high standards when performing all the necessary tasks to keep their investment property beautiful and well-maintained. Cutting corners here and there on the quality of updates or maintenance projects will only lower the property's value.

Partnering with a real estate professional

When it comes to locating the ideal property to use as an investment, it's important to select a top real estate agent to assist you in your search. Julie Gilbert of Copper West Real Estate is one of the top Hood River real estate agents in the area. In addition to being a licensed real estate agent in Oregon, Julie is also a licensed agent in the neighboring state of Washington.

Throughout the region, Julie has assisted with purchasing and selling some of the most exceptional properties available. With Julie as a guide, investors can rest assured they will have access to some of the top luxury homes for sale in Hood River, Ore., and the surrounding region. If you're ready to improve the outlook of your portfolio with a luxury real estate opportunity, contact Julie today.
*Header photo courtesy of Julie Gilbert


Work With Julie

Julie believes in the relationships developed as Realtors, and knows that a successful transaction starts with understanding her client's interests and needs. She looks forward to hearing from you.

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