Especially since I haven't even started in RE yet, I imagine the luxury of a wider margin of error would be beneficial.

Meanwhile new construction luxury homes have exteriors that are rotting. http://6abc.com/home/troubleshooters-uncovering-co...

I just redid the floor in a rental with Allure luxury vinyl plank from Home Depot.

Make sure you take "Ultra Platinum Diamond Jubilee" training where you learn insider secrets... the ones "they" don't want you to know. 

What are the pros and cons of developing luxury townhomes?

Another example, popular in mnay areas is historic retail or industrial properties to luxury apts/condos.The key to profit is identifying under utilized properties and changing them to thier highest use.

I am in no doubt which of the two evils I would prefer, but we may not have the luxury of choosing our own destiny.

[LINK REMOVED] are also cautious in their approach after the slowness in the [LINK REMOVED] which has seen rates for the luxurious property fallen down quite significantly recently.

Once I went into bankruptcy to retain our house, I was amazed to find that the one thing I could not liquidate was my timeshare: a luxury item which should be the first thing to go.

As far as the huge apparent profits on the low-luxury segment you describe, I can be a bit skeptical I admit, but do you have any addresses of properties that could be (or were) purchased at 300k, cosmetically rehabbed, and sold for 450k.