Buying luxury real estate: rational or emotional?
When buying a luxury real estate is in question, getting "a good deal" does not play a major role in making decision to purchase. Even buying a real estate worth several hundred thousand euros sounds like a lot, the question is why someone would pay such a huge amount?
Sea view, terrace and pool are just a part of what is called luxury. And while one buyer of luxury real estate search modern architectural and design solutions, others will look for a property that has historical and traditional values. Such property will carry a touch of historical authenticity of the site on which it is located.
How to think rationally when buying real estate? Buyers of luxury properties often think globally, not locally. It is important to think about what is happening in the world and what is the economic situation and weather the real estate market is resistant to economic and political trends. Customers will invest in luxury real estates even in another country, if they think that there is a stable economy. Buying luxury real estate is often an investment, because today purchased real estate tomorrow may be worth more. Wealthy buyers did not earn their money without thinking about goodinvestments.
In the real estate market, as well as all the other kind of markets, the price of sometimes really comes down to the price that customers think the product is worth and the price he is willing to pay. However, the luxury real estate is not just a place to "live somewhere," it's a piece of the collection, and customer portfolio. It is part of the property, which carries a value, both financial and emotional. (Zillow)