May 17, 2008

Wealthy See Real Estate Opportunities Now

Wealthy consumers are viewing the 'down market' in real estate as a great opportunity for investment. American's Express' "Annual Survey of Affluence and Wealth in America," by The Harrison Group, reports this good news for those of us who work in the luxury market.
The survey reports that 40% of those earning $500,000+ annually plan to purchase ahome in the next year and believe that real estate is a 'real opportunity' right now.
Of those earning $100,000+ annually, 79% believe that the U.S. is in a recession, but 88% believe that property values will rebound. This group looks to capitalize on real estate opporunities as well.

The Institute for Luxury Home Marketing reports:

"This desire to purchase is consistent with Merrill Lynch and CapGemini's research showing that the world's very wealthy have been shifting more of their money into residential real estate. Last years' "World Wealth Report" showed that money millionaires (those with a million or more in investable asssets) had 12% of their total investment portfolios in residential real estate. For this group, purchasing another residence may be as much an investment portfolio strategy as a recreation/lifestyle decision. In any case, it bodes well for the luxury real estate market."

[where: 75230]

No comments: