Luxury Insights

Findings from the Future Wealth Report

The world’s future wealthy are optimistic, sensible, family-focused

Scorpio Partnership is a London-based strategic consulting firm which took on the task of going out and finding the world’s future wealthy and asking what makes them tick.  They identified the usual suspects – professionals, business owners, early-stage entrepreneurs, and used some “creative profiling techniques” to broaden their search.  The study's findings were published this month in the The Future Wealth Report (PDF 400k).

Those contacted were asked, “Do you plan to be wealthy one day?”  The average wealth of those who responded was $2 million USD. They aspire to a total wealth goal of about $7.4 million. Achieving four times what they are worth today is how most future wealthy define “making it.”

Of the group surveyed, the future wealthy in North America reported having taken the biggest financial hit during the last 12 months. 

• 40% said their net worth had decreased
• 24% said their wealth had stayed the same
• 36% reported a wealth increase. 

They are optimistic about their ability to maintain their assets.

• A full 80% of the North Americans do not expect to lose any money in the next 12 months.
• Only 4% thought their wealth might decline in that period.

The world’s aspiring wealthy are contributing to their coffers as a result of these “very important” income sources (they could identify three):

•     Jobs (83%)
•     My business (25%)
•     Listed investments (21%)
•     Marriage/partner (19%)
•     Sale of real estate (17%)

Here is a broad brush list of a few other key findings from "The Future Wealth Report (PDF 400k)," published this month.  The world's aspiring wealthy:

• Focus on brands that deliver quality experiences with a hint of understated luxury
• Simple pleasures, rather than up-market brands, appeal to this group
• Want to be known as generous and hospitable more than known for professional and financial acumen
• Are willing to talk about money openly with their friends
• Prefer to make donations anonymously
• Choose a car that feels great to drive over one with a Wow factor
• View money as a means to an end
• A majority view being a good person as the top priority for how they want to be remembered
• Home life is the source of greatest happiness and fulfillment
• Measure success in terms of achieving specific personal and professional ambitions
• Ethical, moral and family values matter

Asked what they’d spend their money on if their income doubled, the report says the “only lavish glint in the eyes of the future wealthy is the desire for a second or perhaps third home.  Only property moves seriously up the list of spending whims when buying power is boosted.”  Good news for those in real estate. 

New Wealth Report features interview with Laurie Moore-Moore

The independent ratings and research organization the Luxury Institute has published the September issue of The Wealth Report Newsletter.  It features an "Excellence In Luxury Leadership Interview" with our founder and CEO, Laurie Moore-Moore.

Here's what you'll find in the September 2009 issue:

Summaries of Recent Research by the Luxury Institute

• Luxury Retail – Customer Experience Excellence
• Wealthy U.S. Consumers - Wine and Liquor Preferences
• Wealthy Chinese Consumers – Luxury Brand Status

Excellence In Luxury Leadership Interview

• Real Estate: Q&A with Laurie Moore-Moore, Institute for Luxury Home Marketing (ILHM)

Industry Insights

• The Rise Of The Legacy Brand In "The New Economy" By Mathew L. Evins, Evins Communications
• A Culture Of Service: Becoming A Client's Trusted Advisor By Robert C. Elliott, Bessemer Trust
• Camper & Nicholsons – The (Super) Yachting Index

Luxury Institute Research Listings 

Members can download this issue, and past issues on the Document Downloads page of our website.

Annual Gathering: Special Short Sale Summit

Members have been asking us,“Can you help? We’re losing luxury listings to short sale agents who don’t understand how to market luxury homes.” 

So… although Leaders in Luxury will be back in 2010, this year (in response to member requests) we’ll host a special meeting through our new ILHM Center for Asset Preservation division: 

Short Sale Summit 2009
October 7 - 8
Houston, Texas
Hilton Post Oak Hotel

Even if you are experienced with short sales or have already earned a short sale or distressed property designation, you'll want to attend this event.  This is the industry’s first Short Sale training covering government’s new Making Home Affordable Program, which totally changes the rules for short sales (and the whole foreclosure/foreclosure avoidance process).

With jumbo loans defaulting at twice the rate of conforming loans and almost half of residential sales falling into the distressed category, understanding how to make short sales successful at all price points is more important than ever.

Just to give you an idea how different the new standard MHA process is:

• There is now only ONE point between default and foreclosure when a short sale will even be considered.
• The loss mitigator approves the short sale attempt in advance.
• The loss mitigator sets the list price. 
• Whoa!  Those are big change and that's just the start!  There's good news about the commission...

This two day meeting will:

• Provide the Institute’s usual great networking.
• Give you the information you must have about the government’s New Making Home Affordable program which covers 9 out of 10 loans, totally reinvents short sales, and is mandatory.
• Arm you with the checklists, forms, web links and other required tools for successful short sales, regardless of price (there will be special info on luxury short sales).
• Provide you with first hand advice from servicers’ loss mitigators.
• Give you essential information on luxury short sales, to help ensure that you don’t lose luxury listings to “short sale" agents!
• Reward you with a Short Sale Achievement Certificate
• Texas agents receive 15 hours of continuing education credit

On both days, you'll hear from speakers and panels of officials, loss mitigators, and other agents.  You'll have the opportunity to network and will leave having earned a Short Sale Achievement Certificate from the ILHM Center for Asset Preservation, indicating you have received Making Home Affordable training.

This event is open to both Members and non-Members, so bring your whole team.

More info on the CAP Short Sale Summit 2009

Register now and save!  "Early Bird" discounts end the 17th.

• Registration for Institute Members
• Public Registration
  

Great new benefits for Members from UNIQUE HOMES Magazine

Our friends at UNIQUE HOMES MAGAZINE have always been a great resource for and supportive of our members.  

We're happy to announce that they are extending some great new benefits to Institute Members.  You can find all the details here in the Members Only section of our website (login required, members only).