Although most homebuyers enjoy a whimsical look at multi million dollar homes in Calgary's MLS listings, a small group of buyers is taking them a lot more seriously. These properties could be their new home, or they might just be a key investment. Are million dollar homes a good investment? Yes.
The luxury home buyer is more emotional and hard headed than homebuyers looking for homes in the lower price ranges. Wealthy buyers expect much more from a home, from lot size, to rooms to views and luxury amenities. They might want big lots with mountain views, huge pools, gourmet kitchens, huge floor space, the latest high technology, wine cellars, luxury master bathrooms, hot tubs/whirlpools, entertainment centers, multicar garages, waterfront location, and unique features such as timber architecture, living rooms with panoramic windows, enormous fireplaces, or waterfalls. High on many luxury home buyers is entertaining business associates and friends. Their home is a business asset and the right home can mean a lot to them financially.
They're looking for a superb home that offers an experience. They're looking for a home with presence, and one where they can do it all and relax as well. It must match their lifestyle.
Typically the most expensive homes in Calgary are well above 10 million. Take a look at the current homes for sale above $6 million and those $2 million - $5.9 million. The upside appreciation on luxury homes is much higher than regular homes and in a place like Calgary, the downside risk isn't as great. These homes usually get sold near their asking price or sometimes for a lot more. Although some Calgarians have sold their home for a $300,000 profit, these homes can be bought and sold for millions in profit. That kind of money draws a lot of interest from investors.
This is a big money investment therefore it's not uncommon to see financial advisors and other consultants brought in to assess the situation. These buyers are particular about what they want and know that they might get most of what they're looking for. Many will work with a realtor for sometime before finally getting the right property and negotiating a purchase. At these prices, negotiation and the paperwork have to be done flawlessly and they expect complete confidentiality.
The number of million dollar home listings in Calgary have gone from a handful two decades ago to where there are now over 600+ luxury homes selling for more than $1,000,000. That's a positive for wealthy buyers. It means they won't have to find a lot and build their own which is a relief for anyone over 50 years of age. Few people have the patience to endure a home build and many current million dollar luxury homes have everything they want including neighbours in an established community.
Where do you find Calgary's million dollar homes? Surprisingly, they're all over the city. The neighbourhoods with a good number include: Mount Royal, Elbow Park Glencoe, Pump Hill, Springbank Hill, Aspen Woods, The Slopes, and Bear's Paw.
How does the 2013 Calgary housing outlook appear? Hardly a bubble market. With stable interest rates, prices reasonable, positive employment and economic reports, the Calgary market is poised to perform well for buyers and sellers. October's market report is solid. Next spring should bring a banner year for sales and a rise in home prices.