A few times a week, I talk to people who are interested in downsizing their homes and moving to downtown Boston.
At first, it may seem like a strange move––less space for the same amount of money, more traffic, etc.? However, the coin does have another side that can make this step a very freeing decision.
You’ll make better use of all of your space, rid yourself of home maintenance responsibilities, and have all of the coolest events and activities of the city within arm’s reach.
Today, we are talking about what makes moving to one of the many Boston luxury condos a financially (and personally) stable investment:
IF YOU DON’T USE IT, LOSE IT
People wonder if they will feel cramped going from 4,000 square feet to 1,800 square feet - and while some might, at first, this feeling fades quickly. Consider how much of your home’s square footage you use on a regular basis:
For many people, once the kids have moved out and on with their lives, entire sections of the house are rarely touched. These rooms might get occasional use when your children and grandchildren come to visit, but primarily they sit empty. Rather than paying for unused space, why not invest your money in a luxury property where your will use and love every inch?
Often, when we think about getting the most our living space, we treat larger areas as offering more “bang for the buck.” However, square footage is not the only thing that makes a great home. Try thinking instead about how much “bang” you actually use. For example, will you get more use out of three extra, empty bedrooms or a convenient, on-site fitness facility and concierge service?
You may still have doubt in the back of your mind about wanting those extra rooms when guests, children or grandchildren come to visit. Keep in mind, however, that there are tens of thousands of hotels in Boston, across every price range. Instead of paying to keep an empty room available all the time, you can simply rent hotel rooms for your guests when you need them.
GROW YOUR INVESTMENT
Stability is a real and valid concern about real estate investments. Most people who choose to downsize from a large, suburban properties have lived in that home for years. Over time, they have invested in repairs, maintenance, and seen the property value appreciate significantly since their original purchase.
It makes sense to wonder about the strength of the Boston condo real estate market before making the move. Specifically, you may be concerned about whether or not the market will protect the value of your new property. If you are older and nearing retirement, these concerns become especially important. While no one makes any explicit promises about the real estate market, we have observed trends that point to likely outcomes:
In 2014, that more people are living in cities than suburbs for the first time in history. In 1950, 30% of the American population lived in cities. By 2014, the percentage had risen to 54%, and it is projected to reach 70% by 2050.
This steady trend toward urbanization indicates that demand for condo style housing will continue to increase consistently for several years.
It is definitely true that real estate values ebb and flow throughout the year and over time. Property value fluctuations tend to vary more greatly for suburban homes than urban condos and apartments. For example, during the last recession, most of Boston’s downtown neighborhoods saw little to no decline in pricing. The neighborhood of Boston suburbs, however, took bigger hits.
LIVE IN (STABLE) LUXURY
You have probably noticed that Boston is seeing unprecedented building downtown. According to an article in the Boston Globe, this boom in development is not causing condo property values to drop, however, because the new housing units are mostly rentals. Luxury developments with for-sale condos remain in high demand.
The stunning new Millennium Tower is one of the few new buildings with condos for sale, and it was over 90% sold long before it opened. While there are still a few of these ultra-luxury condos available, soon, there is a good chance that the opportunities to purchase Millennium Tower units will be few and far between. However, it is not only the new buildings that offer stability.
The Somerset is one of the most historic luxury condo developments in the Back Bay. It is not uncommon for a dozen of the 128 units to come on the market in any given year and sell quickly.
Another unique historic condo building in Boston is Lewis Wharf on the waterfront. Each one of the 95 condos is elegant and unique, with exposed brick and beam, and expansive windows affording stunning views of Boston and the Bay. These one-of-a-kind condos are always in demand.
The Bottom Line
There’s a reason more and more homeowners are investing in these beautiful Boston luxury apartments. Actually, there’s more than one reason! The stability they provide comes in the form of financial gains - and in the peace of mind you’ll have knowing you are truly using your space to its fullest potential each day.
The Boston market survived a housing market depression that much of the country struggled with, and the demand we have today proves it is only growing stronger.