Buying luxury real estate can be a dream come true, but like any other major financial decision, there are of course pros and cons. Venice luxury homes are comfortable and spacious so that residents can enjoy the lavish lifestyle of Florida’s eastern coast. These properties can be profitable investments. Whether this is your first luxury home or you are a seasoned luxury real estate buyer, there are some unspoken rules that an experienced realtor can help you navigate when exploring Venice luxury homes.
Maintenance costs
When buying a luxury home, a realtor can help you consider likely future maintenance costs to ensure that the purchase is a sustainable and sound investment. Venice luxury homes are equipped with the highest quality amenities and equipment. While these aspects make the houses appealing to potential buyers, maintenance for high-end amenities can be costly. For instance, a home with a gorgeous pool or extravagant landscaping will require some extra care that can be costly. Since luxury homes are often on large properties, maintenance costs are generally high. Some luxury homes may be a part of associations that aid in maintenance through membership fees. Expected maintenance costs will vary from property to property, but a realtor can help you understand what to anticipate.
Consider property taxes
A luxury house comes with a high price and in turn potential for hefty property taxes. Property tax is an unavoidable reality for property owners, but proper planning and preparation can help lessen the burden. Venice luxury homes are subject to Sarasota County property taxes. The county collects on average 0.89% of a property’s fair market value in annual property taxes.
While Sarasota County does have a high median property tax rate, it is significantly lower than Miami-Dade County, which has the highest property tax in Florida, with property taxes amounting to more than 1% of the median home value. In general, Florida has a lower property tax rate when compared to the national average of 1.1%. Florida maintains a lower property tax rate than other parts of the United States as the state attracts many tourists. The state brings in tax revenue through higher-than-average state and local sales taxes. Since property tax is determined by a complex formula and an assessor, the amount paid in property tax will vary from property to property but the high sales tax rates in Florida can serve to benefit property owners.
Association and community commitments
Many luxury homes are located in private communities that are a part of gated neighborhoods or homeowners associations. These communities can offer several benefits to residents, but there are many factors to take into consideration when determining if a private community is the right fit for you and your family.
Some people may be drawn to a gated community due to the additional security measures. Many gated communities have a sense of safety with gates staffed by security guards, or operated by pin codes only known by residents. The traffic coming in and out of the community is carefully monitored. While this does contribute to community safety, it can be inconvenient to navigate the gates just to get into your home. Research has found that the value of homes located in gated communities was around $30,000 more than their ungated counterparts. The security and added value of a gated community could be why around 10 million people live in these neighborhoods across the United States.
Many luxury homes are located in areas governed by homeowners associations. These organizations are made up of homeowners in the neighborhood. Homeowners associations are dedicated to maintaining the neighborhood and keeping a uniform and cohesive aesthetic across properties in the community. Some associations maintain community amenities like a pool or tennis courts.
While there are benefits to being a member of a homeowners association, some get a less-than-favorable reputation, with costly membership fees, restrictive regulations, and other bothersome terms. Buying a house in an area governed by a homeowner association makes the owner a member of the group. As a member, homeowners are subject to the association's covenants, conditions, and restrictions. These rules are legally binding, meaning the homeowner association could place a lien, impose fines, or even foreclose on the homes of residents who do not follow the rules. The specifics of the covenants, conditions, and restrictions are unique to each association but some common rules may include siding and roofing guidelines, parking regulations, and fence heights, among other things. Ultimately, experiences with homeowners associations vary from person to person and it is important to work with a realtor to confirm that the community is the right fit for you and your lifestyle.
Resale prospects
Some may consider buying luxury property as a profitable investment. While this is often the case, it is important to consider how your luxury home will do when reselling. Since luxury homes are expensive, the pool of prospective buyers is limited to those with the means to support the lavish lifestyle. Those selling a luxury home are often at the mercy of the state of the economy when the house is put on the real estate market. For example, sales of luxury homes decreased by 45% from November 2022 to January 2023 in comparison to the same three-month period the previous year. An experienced realtor can help you understand the local market and navigate the difficulties that accompany selling a luxury home.
Ready to explore the world of Venice luxury homes?
Our experienced team at The Dinan Group is ready to help you find the perfect luxury home in the Sarasota area. Contact us today to set up a meeting to get started.
