If you noticed that a celebrity’s house was for sale in the Hollywood Hills or in one of the more popular real estate locations then would you buy the house even though it was over priced for what it really was. What about a beach front house that would be worth up to three million but the asking price was six million because the house was owned being Elvis Presley or Richard Simons? The fact is that if you over pay for your luxury mansion there will normally be no way that you can recuperate that loss unless you are planning to hold onto the piece of land for the next fifty or more years. The differences between prices for some houses in America is almost criminal like apartments in the Sears Towers that cost five million plus which are identical inside to the apartments a few blocks over but you are paying for the luxury of living in the Sears Towers. In this example you are still paying over priced prices but you can also pass this on to the next buyer once you decide to sell up and leave.
Luxury mansions so not make very good rentals unless they are an apartment because the majority of people that can afford to rent a luxury mansion are also the type of people that can afford to pay for their own house. You can put a lot of money into one of the older houses and by doing them up and renovating with only luxury fitting you can turn your mediocre estate into a luxury mansion which should help you to return the investment. Buying at the right time and then renovating is your best option however makes sure that the location you buy in is good otherwise the land prices may not increase at all which will include the price of your new investment. Mansions in the country do not increase in value as quickly as the ones in the cities do however they do have steady increases right throughout their lifecycles and lifespan.