In December, there was lots of buzz about hefty year-end bonuses being paid to Wall Street performers. Many were wondering how these flush folk would spend the largesse. Would it go for bonds, or bling or luxury real estate? The latter would seem a likely and comfy target.
Even though home sales slowed down overall during 2006, the ultra-luxe end of the market has flourished. Luxury home sales at $5 million-plus were up 11 pecent nationwide last year according to property sales data-tracker DataQuick. And for what its worth, 2007 appears to be even more promising with declining interest rates, weakness of the U.S. dollar (making our properties even more attractive to foreign investors), and the hedge fund industry, which has created a new class of zillionnaires. Add to this wealth pool a tight supply of trophy, super-luxury and museum-qualilty homes.
Another very interesting element is the footloose factor. Many of the worlds most afflluent people are no longer bound by geography. With todays communications infrastructure, meeting attendance, operations supervision and other tasks that once required bodily presence can now be handled from just about anywhere on this planet. Desirable and disparate areas such as San Diego, Aspen, Scottsdale, Manhattan or Milan are becoming primary, second or third home to this class of real estate œcollectors..
Also read:And Just What is a Luxury Home?