TOP 7 HOTTEST PLACES IN THE U.S. TO MOVE TO - AND BUY A HOME

Forbes magazine recently answered two important real estate questions:

Where are people moving to?

And where are people investing in homes?

At the end of this article, we’ll answer our own question: What are the most attractive cities for movers and for homebuyers?

To determine where people are moving to, Forbes examined the population growth (or decrease) in major cities throughout the U.S. They focused on a variety of factors — specifically, economic opportunities, affordable housing, and cost of living.

The cities that the most people are moving to are:

  1. Austin
  2. Raleigh
  3. San Antonio
  4. Denver
  5. Nashville
  6. Charlotte
  7. Orlando
  8. Houston
  9. Oklahoma City
  10. Dallas-Fort Worth

 

Austin and the other Texas cities owe much of their success to the state’s excellence in job creation and overall business growth — thanks in part to corporate-friendly laws and taxes that have supported new companies and attracted existing companies looking to relocate.

Elsewhere in the southern states, Raleigh and Nashville continue to grow thanks to the technology, manufacturing and business services strengthening their respective economies. And many movers are also heading to the Mountain States and the Pacific Northwest, taking advantage of the mostly strong economic growth and affordable housing costs.

It’s one thing to move, but it’s another thing to get a mortgage and purchase a home. The top 20 cities where people are buying homes are:

  1. Grand Rapids
  2. Orlando
  3. San Antonio
  4. Charlotte
  5. Salt Lake City
  6. Dallas
  7. Austin
  8. Fort Lauderdale
  9. Seattle
  10. Cape Coral/Fort Myers
  11. Indianapolis
  12. North Port/Bradenton/Sarasota
  13. Nashville
  14. Tampa
  15. Charleston
  16. Denver
  17. Madison
  18. Jacksonville
  19. West Palm Beach
  20. Boise

 

This list considered factors including job growth, population increases and expected home price appreciation. Although nationwide housing prices are on the rise, overall wages are unchanging — so many 2016 homebuyers are finding it difficult to afford a new residence. For investors buying rental properties, these conditions can be beneficial for their strategies.

Geographically, more than half the list includes cities located in Southern states — a good thing for the movers in the first list above. These cities include seven Florida locations and three Texas markets — indicating that movers and investors alike are finding these states to be appealing places.

Florida can attribute its success to lower housing prices, thanks to the recession which had retirees and vacationers staying at home — driving down demand. And Texas, shielded from much of the economic downturn, features affordable housing and a diverse economy that make its major cities a strong choice for investors.

By cross-referencing the 1st and 3rd lists in this article, we can identify the seven cities that are most attractive to movers and homebuyers (by appearing in the top 20 on both lists):

  • Austin
    • #1 on the movers list, #7 on the homebuyers list
  • San Antonio
    • #3 on the movers list, #3 on the homebuyers list
  • Denver
    • #4 on the movers list, #16 on the homebuyers list
  • Nashville
    • #5 on the movers list, #13 on the homebuyers list
  • Charlotte
    • #6 on the movers list, #4 on the homebuyers list
  • Orlando
    • #7 on the movers list, #2 on the homebuyers list
  • Dallas
    • #10 on the movers list, #6 on the homebuyers list

 

So, the answer to our question above — “What are the most attractive cities for movers and for home-buyers?” — appears to be a simple one: Cities in the South! (And Colorado, too.)

 

Sources:

http://www.forbes.com/sites/joelkotkin/2015/10/06/the-cities-americans-are-thronging-to-and-fleeing/#7664bf37139a

http://www.forbes.com/sites/erincarlyle/2016/01/27/best-buy-cities-where-to-invest-in-housing-in-2016/#6cd71be12429


Trendingwatch: High-Fashion with Designer Names

Today’s luxury homes feature dozens of amenities never seen before, or even dreamed of. One of the fastest-growing concepts in the luxury residential market is the “branded property” — a residence associated with luxury brands and high-end designers.

Among the big names working to develop these beautiful properties are Armani, Versace and Bottega Veneta, among others. These designers are each bringing their own unique styles and sensibilities to projects around the world.

Armani’s upcoming projects include the Smart Hero-Central Park Plaza complex in Beijing — the renowned designer will be creating the residential units, shared areas and various amenities, to be completed by the end of 2017 — as well as the Century Spire residential tower in one of the Philippines’ top luxury districts, due to be completed by the end of 2018.  

In addition, Versace has begun work on its AYKON Nine Elms project in London (scheduled to be completed in 2020), and is nearly done with projects in Beirut and Jeddah. Bottega Veneta recently started developing its initial residential design work. And Eisenzahn 1 — a major property in Berlin — will feature design work by creative director Tomas Maier and furnishings from the luxury brand’s home collections.

While a famous name on the side of the building is a major selling point, this trend is more about what each designer/fashion brand brings to the actual properties. Homebuyers and investors alike are looking for aesthetics, comfort, amenities and lifestyle when it comes to a luxury residence — and a world-famous designer’s creativity can give a property a decided advantage over other luxury homes.

There are varying levels of brand association per property — some projects and brands are limited to the design of the common spaces and individual units in a building or complex. Others have brand associations incorporated into the amenities and additional features of the property.

But some owners may pay for the privilege of having the brand’s interior design team on the project give them personal consultations to add an even higher level of customization to the residence — or a complete branded design with furniture at an exclusive price.

Overall, these branded residences are often priced 30% to 50% more than unbranded properties. Not that a larger price point deters luxury homebuyers; many of these projects sell out quickly.

This is likely due to one of the basic tenets of the fashion industry — reinvention can revitalize an entire product line. In this case, the reinvention is the concept of residential development, which is now incorporating a new level of branding and design into these projects to attract luxury homebuyers.

Because these branded residences are currently located around the world, they may be some investors’ first experience with an international purchase. This means dealing with a different country’s real estate laws, as well as the unique issues of owning a property halfway around the world. But having a world-famous brand associated with the home can boost an investor’s confidence and provide a sense of security.

While this trend has already taken hold in hospitality — many hotels have established associations with luxury brands — the enjoyment of high-end accommodations, amenities and conversation-starters is taken to a new, longer-lasting level with branded residences.

And while this trend creates substantial opportunities for investors, it’s also an appealing option for home-buyers to have a unique property created by world-class designers.

 

Sources:

http://www.scmp.com/magazines/style/article/1873767/luxury-brands-are-branching-out-real-estate-collaborating-exclusive

http://www.architecturaldigest.com/story/armani-casa-smart-hero-group-beijing

http://centuryspire.com/century-spire.html


Millennials: The Next Generation of Luxury Spenders

You’ve heard all the complaints about Millennials. Spoiled, lazy, entitled kids who think the world revolves around them.

But stereotypes are just that — stereotypes. And it’s foolish to think that this generation — which will be larger than the huge “Baby Boomers” demographic — is nothing but overindulged, smartphone-addicted brats.

In actuality, there are plenty of hard-working, successful young professionals among Millennials, who are emerging as “the next big market.” Just like every generation, they include ultra-high-net-worth individuals (UHNWIs) whom real estate professionals should work to understand — since they’re your potential clients.

According to MarketWatch.com, a UBS study shows that Millennials have unique spending habits. They usually prefer travel and entertainment over material goods, and they exhibit more brand loyalty than previous generations.

However, the Millennial UHNWIs do appreciate high-end accessories and upscale fashion brands, especially European luxury brands. And probably because they feel optimistic about their personal financial futures, many spend more money on luxury items than consumers over 35.

Because of their large numbers, the Millennials are already affecting the real estate markets. According to a study on LuxuryDaily.com, this generation actually has more UHNWIs among them for two main reasons: inheritances (as with most generations), and early professional successes in the technology industry.

That’s one reason that, on average, Millennial UHNWIs who recently purchased a home spent about $5 million — which was triple the amount of the Baby Boomers, and almost as much as “Generation Xers.”

This Millennial influence is evident in the changing home search requirements. About 33% of UHNWIs want a home gym (this percentage was lower just three years ago), and they also want a “green” or LEED-certified property.

And as for “location, location, location,” Millennials aren’t as limited. Because they can work remotely or their business is location-agnostic, tech-driven cities (Bellevue, WA; Bend, OR; Boulder, CO) are appealing to younger UHNWIs.


Who Really Owns Old London's Largest Private House?

In northwest London, a tony suburb called Highgate is the site of London’s largest private house — estimated to be worth more than 100 million pounds (approximately $142.3 million).

Witanhurst — an eleven-acre property with an expansive, multi-level mansion — has been the subject of rumors for many years, because no one has been definitively named as the owner. And with massive renovations taking place for nearly a decade, rumors and complaints are common among the Highgate community.

These changes have included: demolishing the old service wing and replacing it with a 3-story, Georgian villa called the “Orangery”; a new, connected basement measuring more than 40,000 square feet and including a 70-foot swimming pool, movie theater and parking for 25 cars; a second connected basement beneath the gatehouse, and more.

Once the renovations are complete, the home will have about 90,000 square feet of interior space — making it the second-largest mansion in London, after Buckingham Palace.

While the original estate dates back to the 1770s, the current “Queen Anne style” house was built between 1913 and 1920 for Sir Arthur Crosfield, a wealthy soap merchant. It’s currently “Grade-II” listed, which is an important historic and architectural designation.

With 25 bedrooms, a 70-foot-long ballroom and views over nearby Hampstead Heath and London itself, Witanhurst (“Parliament on the Hill” in Old English) has had several owners since Crosfield.

But as of 2008, no family had lived in the home regularly for decades. However, it had been used as a location for filming movies and TV shows, including The Lost Prince, Tipping the Velvet and Fame Academy.

The ownership of the home was the subject of much debate for years. Public records were unclear. Real estate agents, architects, contractors and attorneys kept quiet and even claimed to have signed confidentiality agreements. Recent rumors claimed that the home belonged to a family from Russia, but their identity remained a mystery.

In the last decade alone, the property exchanged hands several times. It was put on the market in 2005, then bought by a developer for 32 million pounds in 2007. The local council demanded that repairs be made, and after they were completed, it was again put up for sale — with an asking price of 75 million pounds.

And then, Witanhurst was sold for 50 million pounds in 2008. The buyer was an offshore company in the British Virgin Islands, said to be owned by the family of Andrey Guryev.

A Russian businessman and legislator, Guryev is one of Russia’s 30 richest people. According to Forbes, his personal fortune is approximately four billion dollars. But like the property that his holding company purchased, Guryev is a quiet man who remained so even during his career in politics and public service — rarely taking the floor to speak.

Why has Witanhurst maintained such public — even international — interest? A huge, luxury mansion that rivals a nearby royal castle, with a unique and mysterious history of ownership — it makes for quite an intriguing story.

Imagine having Witanhurst as YOUR listing!

Sources: Wikipedia, New Yorker magazine (http://www.newyorker.com/magazine/2015/06/01/house-of-secrets)


A Luxury Home — On The High Seas!

For some, a dream home is a gorgeous mansion with acres of beautiful greenery. For others, it’s a elegant penthouse in an urban skyscraper. For Florida widow Lee Wachtstetter, it’s a 1,070-passenger luxury cruise ship — the Crystal Serenity.

During her 50-year marriage, “Mama Lee” (as she’s known aboard the ship) went on nearly 90 cruises with her husband. And during her eight-year stay aboard the Crystal Serenity, she’s done nearly a hundred more, plus 15 world cruises. After her husband passed away, Wachstetter decided to sell their five-bedroom, 10-acre home in Fort Lauderdale and make her new home in a “location” that she had grown to love — the ocean.

Although she admits that her single-occupancy, seventh-deck stateroom has “limited” space, Wachstetter enjoys all of the amenities of the Serenity, which set sail on its maiden voyage in 2003. Approximately $164,000 a year covers her cabin, regular and specialty restaurant meals (with beverages available at lunch and dinner), gratuities, nightly ballroom dancing with hosts, and Broadway-type entertainment. In addition, there are the captain’s frequent cocktail parties, movies, lectures and other scheduled daily activities.

And this isn’t Mama Lee’s first “home” aboard a cruise ship — she previously lived for three years on a Holland America ship. But when they discontinued their dance host program — she’s loved to dance her whole life — she decided to “move” to the Crystal Serenity. After all, the Crystal Cruise Line is always rated among the world’s best, and the Serenity is their newest ship.

And Wachtstetter enjoys the communal dining experience of a cruise ship, regularly sitting at a table for eight and making new friends. Of course, with all of the delicious culinary options on the menu, she confides that she’s working on losing a few extra pounds that she gained since coming on board.

Most days, Mama Lee can be found doing needlepoint in the Palm Court lounge — it’s “her second love.” Everything that she makes, she gives to staff members of the 655-person crew; in turn, they have become like family to her, providing a near-concierge-level of service. 

She’s able to keep in touch with her three sons and seven grandchildren via her laptop computer. And whenever the Serenity docks in Miami — as many as five times a year — she visits with the family members that live nearby.

Mama Lee isn’t the only full-time resident on a Crystal cruise ship — there are three others living a similar lifestyle. But Wachtstetter has been doing it the longest. She credits her late husband, who told her “Don’t stop cruising” before he passed away. Today, Mama Lee claims that she’s living a “stress-free, fairy-tale life.”

 

Sources: Wikipedia, USA Today http://www.usatoday.com/story/travel/cruises/2015/01/19/woman-pays-164k-per-year-to-live-on-luxury-cruise-ship/22030011/


7 "Uber"-Like Companies for the Jet Set

Thanks to technology, taxis and limousines no longer have a monopoly on on-demand automobile travel. Companies like Uber, Lyft and others have harnessed mobile app technology — and a ready workforce of freelance drivers — to change the way people get from Point A to Point B without even buying one car.

So it only makes sense that this concept is changing air travel for people who use private jets for business or pleasure. Here are seven of the most popular companies who are making private air travel more accessible and convenient for the jet-set:

Blade 

A crowd-sourced, short-distance air travel provider that focuses on flights between New York City, the Hamptons, Mohegan Sun Casino and major surrounding airports. Launched in 2014 by co-founders Rob Wiesenthal (a former music executive) and Steve Martocci (GroupMe co-founder), travelers use a mobile app to instantly book seats on helicopters and seaplanes.

Ticket prices range from $395 to $695, although for a higher price travelers can do a custom charter flight to a destination of their choice — or even fly on a faster aircraft.

Jet Smarter 

Founded in 2012, this company enables private jet charter around the world via a mobile marketplace. Travelers use the app to connect to chartered flights, including more than 3,000 aircraft of all makes and models.

To offer this convenience, JetSmarter takes advantage of the “empty legs” of the aviation industry — which means the vacant 1.5-million-plus hours of flight time spent en route to pick up other passengers. The company buys about 35,000 hours of reservations on those flights ahead of time, which are then available exclusively via the app.

Members pay a $3,000 initiation fee and $9,000 a year for unlimited access to private flights. On the flip side, carriers can use the app to manage their inventory in real-time to fill their flights instantly.

Magellan Jets 

One of the earliest of these innovators in the air travel space — becoming the first private jet company to have an app on iTunes, as well as the first to guarantee in-flight WiFi. The company was launched in 2008, and is renowned for its personalization options — even down to the snacks and magazines — providing customers with all the benefits of owning a plane without actually owning it.

Travelers can book flights based on origin, destination and type of aircraft they prefer, and it will arrive anywhere in the U.S. in eight hours. 

NetJets 

In 1986, the NetJets program was created as the first fractional aircraft ownership program. After enjoying the NetJets service for three years, Berkshire Hathaway Chairman & CEO Warren Buffett acquired NetJets Inc. for $725 million in 1998. While other companies allow users to buy seats on existing flight routes, NetJets actually has its own fleet of planes — selling fractional ownership to corporations or wealthy individuals in exchange for flying time on the largest private jet fleet in the world (more than 650 aircraft worldwide).

NetJets offers several different programs, but the basic offering is guaranteed access to an aircraft with as little as four hours notice. Users pay a monthly maintenance fee and an “occupied” hourly operating fee — which is only charged when an owner or guest is on board, not when the aircraft is going to pick up a passenger or flying to another destination after completing a flight.

SurfAir 

Created for business executives who needed to travel between Los Angeles and Silicon Valley, SurfAir offers “all-you-can-fly” unlimited flights for a fixed monthly fee of $1,950 a month (plus a $1,000 signup fee).

Since 2013, the airline has provided West Coast flights that now include Burbank, Carlsbad, Hawthorne, Monterey, Oakland, Napa, Palm Springs and Santa Barbara, among others. Travelers can book a seat “on demand,” but need to choose from already-scheduled flights. They can make reservations up to a month in advance or as close as 15 minutes before a flight leaves, if seats are still available.

Wheels Up 

This company offers membership programs that greatly reduce the cost of flying privately, enabling travelers to use their app to book flights, arrange a ride-share, and even plan a luxury experience at their destination.

The company, founded in 2013, is unique in that joining the “club” requires no up-front financial or long-term commitment. Members pay an initiation fee and low annual dues to have access to flights at a reduced rate with guaranteed availability; pricing is set on a “pay-as-you-fly” basis, so travelers pay only for hours flown.

In addition, membership includes enrollment in the exclusive “Wheels Down” program, which is billed as “the ultimate lifestyle, events, concierge and partner benefits program.”

XOJET 

Established in 2006, the company provides fixed-price, one-way private charters between major U.S. cities. Customers can buy a set number of flight hours to use per year.

With 40+ super mid-size business jets, XOJET’s private jet charters and flight programs enable travelers to choose their arrival and departure locations, then book if the flight is available — or use a fixed-price charter on predetermined routes when available. Depending on their preferences, members can pay a deposit of $100,000 or $200,000 for the ability to charter a jet whenever they want. The company also offers specially designed VIP experiences, such as rainforest excursions to Costa Rica, wine-tasting vacations to Napa, and deluxe skiing trips to Whistler.

All in all, travelers who can afford the extra cost — and prefer flying without airport hassles and more-cramped-than-ever cabins inside commercial airplanes — have plenty of new options for private air travel. With the advent of innovative, easy-to-use technology, it’s more convenient and personalized than ever!

 


LUXURY AND SAFETY — DEEP UNDERGROUND?

So if you’re one of the few people left on Earth, can you still live in luxury? What if you’re stuck in an underground bunker? Survivalists are already answering these questions — with incredible survival bunkers built with the luxury lifestyle in mind.

There’s one luxury bunker in Tifton, GA, built more than 40 feet underground. It features seven apartments, a 15-seat movie theater for residents, and even has working internet access. For practical purposes, it includes decontamination showers and an outdoor firing range. And of course, it can withstand a nuclear blast. But none of this comes cheap — the price tag is about $17.5 million.

Underground Bunker

About 687 miles northwest of Tifton, there’s an underground bunker (at an undisclosed location) called Vivos Indiana. Originally a government communications facility, it’s now been repurposed as a luxurious hangout for survivors of any type of catastrophe.

With 12-and-a-half-foot ceilings in the living area, plush carpets and rows of reclining chairs, the living area is a great place to spend some quality time. 60 varieties of freeze-dried and canned foods fill the cupboards, complemented by the fresh bounty of a hydroponic garden. Units designed for four to six residents feature double-queen bunks with gorgeous bedding — the kind you’d find at a Ritz-Carlton!

Pet kennels. A gun safe. Exercise and medical facilities. Powerful generators and high-grade filters built to keep the residents warm and safe. And just a $35,000 entry fee.

Built by a former real estate entrepreneur — who sold shares of villas in luxury destinations such as Aspen and the south of France — these kinds of facilities are attracting the interest of many affluent Americans. (In the last several years, the U.S. has added more than 1.5 million new millionaires.)

And this isn’t a uniquely American phenomenon. The Vivos franchise extends to europe, where a similar-but-larger facility was built in a former munitions storage facility in Germany. This billion-dollar property can house 34 families for a full year, with swimming pools, a wine cellar and more — priced in the $3 to $5 million range.

Clearly, if you have a few million dollars to spend — and you’re a bit worried about war or meteors or nuclear plant meltdowns — you have options.

The folks at SurvivalCondo.com can help you build your own luxury bunker, with half-floor, one-level units at about 920 sq. ft. starting at $1.5 million. Full-floor units are about twice that size and price, while “penthouse” units of about 3,200 sq. ft. on two levels start at $4.5 million.

As is always the case with luxury real estate, the bigger the budget, the more options you have. Luxury survival bunkers are a growth market — and while there is a natural limit to how big it will get, there’s definitely a need.

So if you have a client who’s a bit paranoid about world-changing events — but also a predilection for the finer things — now you know what kinds of showings to schedule!


6 Things to Know from the 2016 Wealth Report

There are a variety of challenges facing today’s ultra-high-net-worth-individuals (UHNWIs), according to the 10th edition of “The Wealth Report” — published by global real estate consulting company Knight Frank.

The 2016 Attitudes Survey is based on responses from approximately 400 of the world’s leading private bankers and wealth advisors who were surveyed in the 4th quarter of 2015. Their answers — concerning the UHNWIs in their client base — tell a story of growth slowdown, changes in family and succession dynamics, increased scrutiny and economic pressures.

Here are six of the most interesting findings from the report (in our opinion):

  1. Two-thirds of respondents believe that their clients’ wealth will increase at a slower rate over the next 10 years than it did over the previous decade.
    While a positive trend has lasted nearly a decade, the forecast for the next decade is slightly bearish, with growth expected to slow down. The main issues creating a challenge for wealth creation then — and now — include succession and inheritance considerations, increasing taxes, and the worldwide economy. Other important concerns include the fact that more families have members spreading out around the world, personal security and safety, and personal and family health.
  1. Threat to future growth #1: Succession and inheritance issues.
    More than 85% of respondents agree that their clients are more active in managing their wealth — so 92% believe that they need to work harder to earn their clients’ trust. These advisors also have to take a look at how they engage with clients, since nearly 80% of them see women taking a more prominent role in managing their family’s wealth — and UHNWIs are getting their children more involved in the family business at an earlier age.

    Also, UHNWIs traditionally have been concerned that future generations would not be successful in maintaining the family’s wealth — almost expecting the third generation to waste much of it. Recently, however, the attitude has been that the second generation is more likely to fail at growing the family’s fortunes. When asked, 62% worried that their children would be encouraged to earn their own wealth, and nearly 50% felt that they wouldn’t know how to handle the family’s investments.
  1. Threat to future growth #2: Wealth taxes.
    Nearly 70% of respondents agreed that their clients feel that they are under increased scrutiny by the public and authorities, so they are more aware of displaying their wealth publicly. One example of this increased attention is in the U.S., where “the 1%” are being criticized for currently favorable tax rates, as well as corporate tax benefits.
  1. Threat to future growth #3: The global economy.
    Many respondents felt that UHNWIs are being scapegoated by governments who are failing to address wealth-inequality issues.
  1. The majority of respondents said that their clients will be increasing their philanthropic activities.
    As always, philanthropy is an important part of the UHNWI agenda — perhaps more so than ever before. According to the survey respondents, most of them noted indicated that their clients would be expanding their philanthropic activities, which continues the trend over the past decade.

    Approximately 67% of UHNWIs had already been growing their philanthropic efforts over the past 10 years, while nearly 80% noted that they would continue that growth over the next 10. The main reason cited was “a sense of personal fulfillment,” although religious beliefs were also mentioned as an important reason (specifically in the Middle East).
  1. 30% of UHNWIs are considering a residential purchase in 2016.
    Another important part of the Wealth Report is the coverage of the current attitudes of wealthy individuals with regard to property — whether as a place to live and/or as an investment.

    Over the past decade, more than half of respondents noted that their clients were allocating more of their investable wealth to residential property, while more than 40% expected that to increase over the next decade — with 30% of them being likely to think about a residential purchase this year.

    According to the report, UHNWIs have designated about a quarter of their investable wealth for residential properties, and another 11% on commercial real estate. The major motivators for this expected growth in residential real estate purchases? The most popular reason (55%) was as a re-sellable investment, while other key factors include as a safe haven for funds (47%) and investment diversification (46%).

    In addition, commercial real estate interest is growing. Nearly half of wealth advisors foresee increases in their clients’ portfolio allocations in the next 10 years. Their most likely targets include offices and hotels (the standard investments of choice), although warehousing and logistics are increasingly popular.

While new challenges are out there, 2016 should be a year of opportunity. Even with a variety of issues facing UHNWIs and the professionals who work with them — from slowing growth and changes in family/succession planning to increased public and media scrutiny and economic pressures — these challenges should be viewed as opportunities for advisors to develop creative solutions and prove their value.

 Source: The Wealth Report 2016 Attitudes Survey


Luxury Garages Become A Swanky Social Space

Along with clothes, watches, and wine, high-end and vintage cars are a favorite collector’s item for high-net-worth individuals. And—just as many luxury homes have custom wine cellars and walk-in closets—luxury homeowners with treasured car collections are likely to want a special space for their high-end vehicles.

Luxury Garage

Top end luxury garages have little in common with the dusty cement rooms that immediately come to mind and they’re about much more than car storage. For individuals with prized vehicles—whether 1 or 100—the ideal luxury garage might be used for:

  • Entertaining. A high-end car enthusiast wants to be able to spend time socializing amidst their car collection, so luxury garages can boast an entertainment system, seating area, wet bar, and card table or billiard table to widen the space’s utility.
  • Showcasing. For car collectors, each vehicle is a work of art, and so a luxury garage acts as the gallery. Custom lighting and rotating turntable displays can enhance the presentation of a homeowner’s favorite vehicles.
  • Maintenance. Many car collectors like to get under the hood of their cars and a well-equipped maintenance bay is the perfect space to tinker.
  • Preservation. Finally, a collector will want their high-end vehicles to be cared for and protected from the elements, so climate control is a must in humid climates where weather can speed deterioration and encourage rusting.

If the luxury home is in an area without space restrictions, then an added garage can span thousands of square feet and accommodate dozens of vehicles without issue. For city dwellers, however, a car storage space can prove more elusive. One popular solution for wealthy collectors is a car elevator such as the PhantomPark, which starts at about $40,000, is custom built to fit the homeowner’s needs, and stores cars below ground. It is important to note, however, that while a lack of garage may diminish a home’s value and desirability, luxury garage renovations see a mere 52% return on investment in resale.


Global Wealth Forecast: New Money, Same Tastes

The next decade and beyond will see many changes in who holds the world’s wealth, how they acquire it, and what they do with it.

Old Money

Individuals who have inherited their wealth favor investing their money in luxury residential real estate. According to the recent Decades of Wealth report by Wealth-X, ultra-high-net-worth individuals with inherited wealth hold 17% of their wealth in high-end residential real estate. This figure is only 9% for self-made UHNWIs. This trend is likely to continue as Baby Boomers age and pass their wealth on to younger generations. In the next decade alone, global UHNW individuals will bequeath $4.1 trillion in wealth to the next generation. An estimated 30% of this projected wealth transfer will be in liquid assets.

The number and nationality of individuals with inherited wealth is shifting. In North America and Western Europe, for example, the past decade has seen a decline in the number of wealthy individuals with “old money.” The opposite trend can be observed in developing nations where most of the wealth is brand new: the first big wave of new wealth is being passed down to the next generation.

New Money

According to the World Wealth Report, the global HNWI population grew by 6.7% in 2014 and the group’s total wealth grew by 7.2%, resulting in an estimated HNWI population of 14.6 million.

  • The HNWI population in China grew by 17% in 2014. China continues to experience economic prosperity and a growing upper economic class, the older generation of which is now passing its wealth on to the next generation and investing in foreign economies.
  • Over the past year, the number of millionaires in India grew by 27% and their HNWI population grew by 26% in 2014. According to Wealth-X, “Aligned to this wealth growth is an equally substantial increase in luxury consumption.”
  • African nations. As entrepreneurial and tech-centric countries such as South Africa, Kenya, Nigeria, and Uganda continue to experience increased economic prosperity and innovation, they are catching the attention of foreign investors—particularly wealthy Chinese nationals. Wealth-X projects that Africa’s UHNW population will quadruple by 2040.

AprilBlog

Globalized Taste

In their Decades of Wealth report, Wealth-X wrote, “China is often cited as a market that has surprised observers with the speed of its move from conspicuous consumption to careful, tasteful purchasing.” With the globalization of media and entertainment—and, as a result, trends and lifestyles—the world’s new wealthy are expected to follow in China’s footsteps by becoming discerning consumers with refined tastes—including a taste for luxury residential real estate. Roughly 80% of the world’s UHNW population own 2 or more residences, and it is becoming increasingly popular for UHNW individuals to invest in unique and exotic luxury homes outside of their home country. The United States remains the most popular destination for wealthy individuals seeking a place to invest in real estate