Profit From Renting a Boston Luxury Condo or Single Family HomeOctober 4, 2014
Given the level of activity in the Boston luxury real estate market, buyers have more options. I advise my clients who intend to purchase a property, but aren’t quite ready to move, to make a handsome profit by buying now and leasing to tenants until they are ready to move in. It is a very lucrative proposition and the return on the investment is huge, thanks to high rents.
Which Boston Luxury Homes Have the Most ROI?
The properties that rent well and fast are the ones in Boston luxury real estate buildings, recently renovated with top of the line amenities. Demand for single family home rental is also on the rise. Families, or professionals, relocating from other areas that are unfamiliar with the Boston area, generally opt to rent. They pay exorbitant amounts in order to familiarize themselves with different Boston neighborhoods and find out exactly where they would like to ultimately settle. Or, they are in the midst of construction and remodeling, needing a place to live and rent a suitable place regardless of the rent amount. I have seen large families renting luxury apartments in full service buildings or single family homes to house their large family during renovation / construction of their Boston luxury homes and paying in excess of $50,000 a month.
Depending on the location and the property, it is a good investment to think about buying a Boston luxury home now, knowing the prices will only go up with all new products coming on the market. Many foreign buyers are just doing that, buying to rent and capitalizing on the rising market.
However, if you’re buying a property purely for investment and not for future move-in purposes, be smart about the property and the location in order to be able to maximize your investment and rate of return.