A Mansion Glut–or a Grand Opportunity?

 

A recent Wall Street Journal article reveals a trend in real estate that might actually be a boon to investors who choose luxury second home partnerships via a one-of-a kind model from innovative Lifestyle Asset Group (LAG).

The article, A Growing Problem in Real Estate: Too Many Too Big Houses, highlights several key factors behind the abundance of large properties on the market. Empty nest sellers are aging out of their homes with high maintenance costs and expansive grounds to cover. What’s more, 1st home buyers are tending away from larger properties and looking for something altogether different.

Lifestyle Asset Group offers something altogether different…gorgeous second homes that are also sound real estate investments. With Lifestyle Asset Group’s luxury real estate partnerships, buyers get to own and enjoy multi-million-dollar homes that they will not need to occupy 52 weeks a year, nor have to maintain.

It’s time for brokers and their sellers to look at multi-tiered solutions that Lifestyle Asset Group offers. Lifestyle Asset Group is a leading luxury real estate investment company, utilizes a unique partnership ownership model to add real-time value for buyers, sellers and real estate agents – making profound sense in today’s luxury and ultra-luxury markets.

From a seller’s perspective, Lifestyle Asset Group’s clientele become compelling prospective buyers. From a buyer’s perspective, partnership with Lifestyle Asset Group opens a whole new world of luxury second home ownership with minimal investment and life-changing returns. This extra inventory at the top also allows Lifestyle Asset Group to be extremely selective in its acquisitions, targeting only cream-of-the-crop real estate in the finest, most desirable locations.

 

Luxury home at a fraction of the cost

Being able to afford a gorgeous luxury home at a fraction of the cost was a big draw for Charles Salcetti of Bethesda, MD. This is what he says about his investment in a Lifestyle Asset Group luxury second home.

“I recognize that we are interested in a high quality second home for our ever growing family, but without the cost and hassles of outright ownership. So the ability to own such a property with a handful of other like-minded owners is very appealing.”
 

Flexible travel and length of stay

One of the biggest issues with sole ownership of a second home is being tied down to one location and all the maintenance of that property. With Lifestyle Asset Group, Salcetti enjoys the perks of owning a luxury second home with much greater flexibility and a low-maintenance, more realistic approach to luxury living.

“Our objective is to have access to a second home for +/- 60 days a year, which is still twice what the average owner of a second home uses their home. The fact that we can pay 1/6th of the purchase price, as well as 1/6th of the ongoing maintenance costs, have access through a pre-established reservation system, as well as a defined exit in seven years, accomplishes these objectives. Further, we have the ability to exchange time at our second home for other homes throughout the world through the Elite Alliance exchange program, which allows us the further flexibility to travel the world,” Salcetti added.

 

Big home with low maintenance

By partnering with Lifestyle Asset Group, you can actually own an exquisite second home without worrying about all the upkeep and maintenance. What is one of the key contributors to the glut in larger homes? These big homes are simply too much to handle for aging and retiring owners even if they can outsource some of the labor.

George and Diana Hambleton shared this sentiment in the Wall Street Journal report. Only four years after finishing their custom build, the couple is selling their $3 million home and 3-acre property in Wadmalaw Island, SC. They said they want somewhere smaller where someone’s taking care of everything.

Lifestyle Asset Group takes care of everything for you, and you don’t need to downsize. We handle maintenance, upkeep, cleaning, lawn and garden care, interior decorating and furnishings, and much more. Any major maintenance expense, which is rare, gets shared by the six to eight co-owners of the property.

 

Safe investment with clear exit plan

The Hambleton’s, who put their home on the market in 2016 for $2.99 million, are now asking $1.975 million, according to the Wall Street Journal. While there’s no guarantee in real estate, Lifestyle Asset Group partners begin their investment with the end game in mind.

Even with a second home intended to be a vacation home, the ability to sell the property and avoid loss is critical. That’s why Lifestyle Asset Group’s luxury real estate ownership model gives you an exit plan and an opportunity to potentially make money.

Lifestyle Asset Group’s properties are sold as LLCs with a pre-determined length of ownership and sale of the property. Depending on the LLC, the term is 6-8 years from the closing date, which mirrors the average time most people hold on to a second home. At the completion of the term, the property is sold, and the shareholders will first receive back their original capital contribution plus an equal share of any gains in the value of the property that may have accrued over the years.

After reading the Wall Street Journal article, you might question whether the glut will continue and you too will have difficulty selling at the end of the term? While we can’t predict the future, we do know that real estate is cyclical and Lifestyle Asset Group has solutions for all scenarios. We encourage you to contact us, ask the tough questions and research your luxury second home investment.

 

Lifestyle Asset Group investors Tommy and Sally Davis of Nashville, TN, did their research.

“I have looked at many joint ownership alternatives and this is the first one that gave me security, a guaranteed exit plan based on market conditions allowing for potential profit, low cost of ownership because of shared ownership in the single asset LLC and the ability to purchase as much time as I wanted,” Tommy said.

 

Yes, there are more luxury homes on the market right now. But, partnering with Lifestyle Asset Group allows you to own a percentage of a sizeable estate. More importantly, it opens the door to luxury home ownership for those who are seeking a second home which perfectly fits their family’s needs without any of the upkeep…. And all of the room!

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