If you want to purchase a luxury apartment, one of your major concerns may be how well the apartment will retain its value. When you purchase an apartment rather than a single-family, detached home, the value of your property isn't entirely under your control. Instead, you need to take a look at the amenities provided and the maintenance of the common spaces in order to determine whether your property will be able to retain value.
1. Take a Look at the Special Assessments
From time to time, a condominium will engage in a special assessment. Special assessments relate to the work that is being done around the property that doesn't fall under general repairs and maintenance. This can include things such as upgrading elevators, redoing landscaping work, or even painting the entirety of the building. A luxury apartment building should have a reasonable amount of special assessments over the years to show that the condo board is being proactive.
2. Get the Owner Occupancy Rating
Luxury apartments are frequently inhabited by their owners -- but not always, especially in larger cities. The higher the owner occupancy rating, the more likely it is that other owners are personally invested in the upkeep, maintenance, and community of the building. If the building has a very low owner occupancy rating, you'll be dealing with a lot of renters who won't necessarily care about the property.
3. Examine Future Plans
Condo developments are impacted by nearby developments in a way that single-family detached houses are not. If another comparable luxury condo is planned for the area within the next few years, it could mean that the apartment you're looking at is going to go down in value. But if a luxury condo is planned that will actually be more expensive, it might bolster prices in your area. Your real estate agent can give you further insights into the future of the community.
4. Look at the Neighborhood
Is your luxury apartment building about on par with the other buildings in the neighborhood? If so, that's a good thing; when you're purchasing property, you usually want to fall somewhere around the middle of the pack in terms of value. If your luxury building is the most expensive building in the area, it's going to find it very hard to increase in value. Likewise, if your luxury building is the least expensive building in the area, it may actually increase in value faster.
Luxury apartments are often the better option for young professionals and those who are just starting a family. With a luxury apartment, you can get some considerable amenities without having to invest in the maintenance that a home requires. By doing the additional research above, you can also make sure that your luxury property continues to appreciate in value. Check out a company like Miamisburg Luxury Apartments if you're interested in a luxury apartment.