The real costs of owning a luxury home

Dated: March 18 2021

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A gorgeous house set on a prime location. Amenities that rival those of top hotels and resorts. Unparalleled privacy and peace of mind. Prestige.

All these are the marks of genuine luxury living.

But to paraphrase a beloved adage from pop culture, “with great luxury comes great responsibility.” All the bells and whistles you get with a luxury home are worth every dollar you spend on it, but your responsibilities as its owner are likewise worthy of your interest.

These are four key costs to consider when owning a luxury property:

  • Upkeep
    Luxury living is all about maintaining a high standard. When applied to your home, this means ensuring regular upkeep around your property, whether by hiring permanent staff or a regular contractor.

    If you are gearing to buy a luxury home in Scottsdale or Phoenix, make sure to figure out the cost of your utilities and maintenance requirements alongside what you will need to pay for the purchase. Remember: the more space you own, the more it will cost to maintain your home.

  • Insurance
    Consult with a knowledgeable local real estate agent to find the best insurance providers in your area that can cater to your distinct insurance needs. Custom coverage policies are designed to protect unique, high-value
    assets. Depending on the insurance carrier, these may include your jewelry, cars, antiques, and even pets.

    Opting for standard insurance coverage for your luxury home will leave your property underinsured and exposed to greater financial risk in the event of a significant loss.

  • Taxes
    Like maintenance and insurance costs, your property tax obligations grow as the size and magnitude of your home increases.

    Fortunately, Phoenix luxury real estate is known for incurring some of the lowest property taxes anywhere in the country. Arizona has an effective tax rate of only 0.77 percent of the assessed home value – well below the national average of 1.21 percent – so even if you are paying a premium to own a highend home, you still save more than other luxury homeowners elsewhere in the United States.

  • Security
    Luxury homes are commonly located in exclusive, gated communities with dedicated security personnel. Condominium and townhouse complexes have in-house security staff. In other cases, owners of standalone luxury properties can hire your security staff to complement built-in provisions such as a gated perimeter.

    In addition to covering the physical security of your luxury property, look into another relevant aspect of your personal privacy: cyber-security. With the emergence of smart home appliances, the importance of protecting your home and your personal information from cyber threats is more crucial than ever before.

    Invest in reputable brands for both security hardware and software. More importantly, hire specialists who understand how these systems work and can teach you how to manage and maintain them. These steps will go a long way in protecting your home and your personal information from potential compromise in today’s digital age.

Aeris House Properties is the brokerage to trust when it comes to the finest luxury properties in the Metro Phoenix real estate market. Learn more about the best options available today, including exclusive, off-market listings. Get in touch with our team here.

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