Alternative Investment of Ultra-Wealthy in 2023
Keep reading if you want to know how to get real estate investment return as high as 100% and more!
Alternative Investment of Ultra-Wealthy in 2023 remains investing in unique and conceptual real estate, whether private villas or resorts. Creating uniqueness requires experience and talent, and most significantly great creativity, which is so rare in life. It is not for nothing they say that the Firebirds do not fly in flocks, and there are not many palaces. It directly relates to the content of this article, which was specially written to show potential investors in detail what they should pay attention to in this market. Although, it all applies to any other market. A successful investment is always a choice of location and the uniqueness of the project itself. It is reached in different ways. We discuss them here.
Stereotypes in the marketplace and advertisement
Obviously, you've already noticed, while wandering the Internet, how many companies do their best to publish articles about the same things, relentlessly offering services, giving advices to the potential buyer. Don't they all seem the same? It seems to be all right, all the advice could have a place. But which of those companies really can offer something unique to the market, asking entirely different money for. In other words, all those numerous guidelines about real estate investment are nothing more than a declaration. Why?
1. The market is subject of stereotypes about the way real estate should be. The market imposes modern "Boxes" style architecture where minimalism, glass and concrete dominate. With few exceptions, it's all the same. The difference is the location and the size of the property. Therefore, the price.
2. All investment projects, even when choosing a good location have a standard rate of return. It is unlikely to go above 20%. This is the industry standard.
3. All real estate valued over 500,000 Euros is classified by the market in the luxury category. Look at the ads. All the ads scream only about luxury and exclusive property.
These are all stereotypes. Why reinvent the wheel, when it has already been invented. After all, the statistics in Marbella market speak for themselves. Here are just a few catchwords.
Real estate market has a proven reputation for being consistent.
According to Idealista, prices were already rising by 2015. And by 2018, they went up by 12.5%, taking them ahead of 2011 values. Covid had little effect on prices, which rose by 2.8% in 2020. Last year saw a slightly higher uptick (3.8%) and they now stand at 17.5% higher than a decade ago.
Foreigners constitute more than 25% of Marbella population..
Because of its excellent weather and vitality, Marbella’s population grows every day. It is important to notice that the city has a great number of retired people and most of them come to the Costa del Sol to live their retirement.
Therefore, the real estate market has become an industry to build and sell on the terms this market has devised and dictates to the consumer.
High-Yield Real Estate Investing In Marbella
All the above would not interest to us, because we look at the market and real estate out of the box and follow the way Einstein once spoke of. He was talking about the ignoramus who didn't know there was no other way, even though everyone was stopping him. He goes his own way and makes discoveries.
We have chosen our way and certainty it is the right one is not an unsubstantiated statement. I guess if my experience had been shaped only in Europe, my mentality would have been different. But I spent 25 years working in Asia, where the mentality is fundamentally different from the Old World. They demand uniqueness and are willing to pay for it. Paying a lot of money, Asians do not want to get real estate like everyone else, but to make it special. The more unique the offer, the higher willingness to pay for it. The experience gained in the luxury industry in Asia allows us to make a breakthrough in Europe. We need a new way of looking at real estate and a new way of investing in it.
Not a single real estate investment project in Asia is considered profitable in the luxury industry if the investor's rate of return is below 50%. Unique investment projects reach as high as 100 and 200%.
Here is just one example. That is one of the most expensive houses in China. The most expensive home in China is a "Utopian castle".
This villa is priced at $154 million U.S. dollars. It is located on a small private island on the lake. 32 bedrooms and bathrooms. It also comes with a mist-covered pond as well as as luxury staples such as a wine cellar and swimming pool
The total area of the house is 6,690 sq.m.
Let's calculate how much it costs to be built. 6,690 x 500 = USD3,345,000
Interior design: 6,690 x 1,500 = USD 10,035,000
Such a huge piece of land costs USD67 million.
What do we have in the output? USD 80 million cost and the sales price of USD 154 million, or almost 100% profit.
What does this example say? Yes, of course, the main cost is the cost of the land, but nevertheless, this is a spectacular case of creating a unique property.
It is this kind of approach of investing in real estate and it is fundamental to the Investment Club, one of the tasks of which is exactly the development of such projects. When can you ask for a high price when selling real estate? It can only be asked for in one case: if the property is in a highly liquid location and looks more expensive than it is being asked for.
That's how real estate investments in Asia work.
Marbella is a well-established market, a world resort, gathering rich people with large capital. Why couldn't we have a similar approach to this market in real estate? Why doesn't it?
One day when I talked to Night Frank's staff about one of those projects, specifically the Villa on the Lake , where the sales price could be closer to USD 350 million, the reaction of the realtors was unforeseen. They responded that Marbella needed such projects, it would boost the market, make it ultra-luxurious and attract the interest of the entire Europe to such properties.
Of course, the project "House on the Lake" is an extremely expensive project, but nevertheless, there is a demand for development projects of a different level.
Our Ultimate Guide to investing in Marbella Real Estate
In order to invest in real estate, the rate of return of at least 50% and even more, and if we want to make a 100% profit or even higher, we must have a really unique project, radically different from all that exists on the market. In that case, such that project must have high liquidity.
To do this it is necessary:
1. A Unique and Conceptual Architecture. One example is our project "Villa Don Quixote". All market trends are preserved, but the design of architecture is improved to uncompromised level of luxury.
2. Prime land
3. Visual effects
We need to create such a visual effect of the property that visually it seems to us much larger than it actually is. The visual effect partially justifies the proposed sale price. This is achieved by many things. It's our know-how.
4.WOW Effect.
The most important part of the price is as we call it, the WOW effect. This is the emotional state that the buyer feels when he looks at the property. Only talented people have the ability to cause such a state. If the first impression is the tour around the property, when the customer drives up to the villa and starts to see the volume, and it certainly exceeds the amount of square meters advertised in the brochure, the next player must be the interior.
5. Outstanding Interior Design
Interior is our passion. 25 years of designing luxurious interiors and unique pieces of decor have not been in vain. Today we are able to design masterpieces without regard to their cost. Yes, that's right, and there's no provocation here.
The reason is that we manufacture everything we need for décor, and not manufacture in Europe, but supply from our Asian factories. Do not think we buy consumer goods from China. This is not the way to design luxury. We produce goods that are consumed by Asian billionaires and that they prefer to manufacture locally rather than buying in Italy and France.
6. Property as Art Object
Read our articles Build a Villa in Marbella where we open all of the secrets how to transform the villa into Art Object and therefore to increase sales price.
Comments