When it comes to second homes for the affluent, you’re going to come across a lot of luxury homes for sale – especially small ones! But why is that? Here we’re going to talk about why smaller homes are showing up in some of the most exclusive communities and what you can do to make sure you snag one. Always remember, you really do get what you pay for, so if you see something about a timeshare or a deal that seems too good to be true, it probably is. Make sure you work with a luxury realtor that understands the area, the market and your needs as a buyer before you put down money on a home.
Less is More When it Comes to Oakville Real Estate
While most of us have gotten used to bigger and bigger homes, sometimes less is more! Many Baby Boomers are looking for homes that are more manageable, economical, and in better locations. This is like many developers to build smaller 1500 ft.² or less homes in resort areas – places where exclusivity is at a premium, but there’s just no bigger lots left to build on. They’re targeting the “spendthrift affluent”; this might seem a little bit of a misnomer, but more and more people are realizing that they have to save something if they want to be comfortable in retirement.
Built to Ease Tension
The reason that these new homes are smaller, however, isn’t just about saving money. Many resorts and exclusive communities are trying to find ways to maximize profits by selling more land, but without upsetting current residents who paid much more for their property. These may be billed as “retirement cottages”, “vacation cottages”, or vacation houses; but whatever they’re called they do pretty much the same thing: provide desirable housing in desirable locations without upsetting current owners and their property values.
Smaller Homes Don’t Bring Down Sales Prices
Imagine if you paid $1.5 million for your home: you probably wouldn’t be very happy with somebody paying $500,000 next-door, would you? By selling smaller homes near beautiful golf courses and amenities, developers are able to get the most bang for their buck without freaking people out. First-generation homes appraisal values remain high, new people get to move into the area, and the developers make more money. Everyone pretty much wins in this situation.
Cabins and Cottages the Thing to Watch
With more and more Canadians getting into the real estate game, especially the luxury real estate and luxury homes for sale market, cabins and cottages may just be the thing to watch. Baby Boomers want to maintain the current level of amenities that they’ve become accustomed to, and they’re not going to go gently into the dark night of the nursing home either. Talking with a luxury realtor or luxury real estate agent in your area can help you understand the investment opportunities locally and nationally. Make sure you do your research, understand the risks, and talk with a professional before you think about investing.
By Brad Miller of The Goodale Miller Team. Goodale Miller, located in Oakville, Ontario is the #1 team in Canada for Century 21 8 years running, specializing in Oakville luxury real estate. To learn more visit http://www.goodalemillerteam.com