Luxury Trends

High-End Security Systems: Really, Really Safe

In luxury homes, security often goes beyond a simple alarm system (and sometimes beyond the bounds of imagination). For luxury real estate professionals, it’s important to be in touch with the particular security concerns of high-end clientele, and the most popular and effective luxury home security systems available. Also, be aware that it’s commonplace for sellers to ask real estate professionals and prospective buyers to sign non-disclosure agreements covering their safe room or bunker.

Home security systems favored by high-income homeowners all share the same central goal: fast and secure isolation from potential intruders.

CreativeHomeEngineering

  • Safe rooms – The most popular luxury security option is the safe room, or panic room, which is typically centrally located so that it can be quickly and easily accessed in an emergency. There are dozens of companies that specialize in designing and installing bulletproof, entry-resistant rooms, which vary in size and comfort. To add an extra layer of security, many luxury homeowners ask that their safe room’s entrance be disguised. Companies like Creative Home Engineering specialize in customized and secure secret passageways, hiding safe room entrances behind bookshelves, mirrors, or even movable staircases. These security features could also be used to securely store your wealthy clientele’s art, valuables or guns.
  • Bunkers – Another less common security option is the bunker. Bunkers are hugely expensive and meant to withstand not only home invasion, but also natural disasters and even bombs. Bunkers are (of course) underground and typically designed to allow people to survive there for weeks or months. Check out this Forbes article about the trend of millionaire’s in-home bunkers.

There are a plethora of security solutions for luxury homeowners, but the best of today’s high-end security companies are offering all-in-one smart home technology that allows the homeowner to control things like climate, energy consumption, lighting, entertainment, and security, remotely and with ease.


Golden Visas - Real Estate Investment, Residency & Citizenship

There is an interesting article on WealthX today looking at the current trends in countries offering residency or citizenship to “immigrant investors” and in particular the shift among the Chinese from the US to the EU. The full article is worth a read. Here are some highlights:

  • In recent years 80%-90% of foreign investment visas in the US, Portugal, Canada and Australia are taken up by People’s Republic of China (PRC) nationals, but this is starting to change.
  • The US, UK, Australia and Canada are limiting some of their programs while they deal with the backlog of applications, or make them more expensive.
  • The US’ EB-5 visa requires investment of between US$500,000 and US$1 million in return for a conditional green card. There are just 10,000 of these visas issued annually and a cap on each nationality.
  • This year Canada stopped accepting applications for its immigrant investor program and the federal entrepreneur program, of which around 90 percent of applications were from China.
  • Investor programs for residence, like in Portugal, Spain, Greece, Hungary, UK, Canada, US, Australia, where the investor receives only Permanent Resident (PR) Status, are more popular in China. Under these programs it is legal for them to invest abroad and obtain PR, while applying for immediate citizenship is against the law in China.

Just for fun, here are the details on the Greek program that affords residency to real estate investors: 

Greece


Living the Multinational Lifestyle

RiseThe number of high net worth individuals in the world is increasing. Fewer of them have inherited wealth and more of them are entrepreneurs and business owners. The world has "shrunk." They are increasingly mobile, increasingly multinational, and they're looking for more than just tax shelters.

If you'd like to better understand who's buying where and why, Barclay's recent research report Wealth Insights: The Rise of the Global Citizen? (PDF) provides some interesting insights into the increasingly multinational lifestyles of the affluent.

As Barclay's puts it, "The Rise of the Global Citizen? report aims to explore the mobility of today’s wealthiest individuals, and to assess whether their choices of where to live, work, study, retire, invest and donate wealth are indicative of an increasingly international group. It also looks at key trends in the make-up of high net worth individuals, and how these are impacting mobility, financial planning, identity and philanthropic behaviour."

Check it out. It's worth a read.


OPP Reports: Chinese Sales ‘Surging’ in the US

Based on recent data from NAR, OPP News reports a spike in US real estate purcheses by Chinese buyers.

 Chinese spending on US property sold by Realtors almost doubled in the year to March 2014, jumping from US$12.8billion to US$22 billion, according to the NAR.

The sales, which were boosted by the appreciation of the Chinese Yuan, accounted for almost one-quarter of dollar overseas sales, the NAR’s 2014 Profile of International Home Buying Activity states.

Although Canadians bought more US homes, Chinese buyers spent more than double on each home, with the average Canadian median value at US$212,500 compared with US$523,148 spent by the Chinese.

NAR-China[1]

One of the authors of the NAR report, Senior Vice President, Lawrence Yun, goes further, saying, “It’s just the beginning of a tidal wave."


Millionaire Households Shop Where?

If your first guess about the three favorite shopping locations for U.S. households with a $1 million or more in net worth includes high-end retailers, guess again. A new report by The Shullman Research Center reveals that an overwhelming 62% of millionaires say their favorite place to shop is Amazon. Coming in at second place, with a hearty 54% “approval rating,” is Walmart. Clocking in at third, with some 49% of the vote is Target.

TopShop

If you look at the information more closely, you’ll see that shopping preferences differ based on the generation. And although the Silent Generation (those 68 or older) represent about 7% of millionaires, the report is, well, silent on this group.

This information reflects the fact that millionaire households may have accumulated high net worth, but they are still frugal shoppers.

GenShop

*Top 10 of 100 shopping locations researched by The Shullman Research Center


Skyscraper Residences Woo the Ultra-Rich

sky's the limit

Developers who are targeting the ultra-wealthy in top city centers around the world are offering flagship skyscraper units created by world class architects and interior designers. Residences come with high-end building amenities such as spas, wellness facilities, helipads, and restaurants. Did I mention the units are turn-key and zero maintenance? Plus, if you want to offset your costs, chances are there’s an experienced management team to coordinate rentals when you’re not using your property. Price per square foot averages from US$1,100 to US$10,640. Have a prospect?

Five U.S. properties made the list of the World’s 10 Most Luxurious Residential Buildings, as reported by Wealthx.


Trend Watch: Growing Importantce of Transportation

Traffic Jam

With Baby Boomers and even more so with Millenials, transportation seems to be a growing factor in the classic "Location, location, location" value equation for real estate.   

This article on The Atlantic Cities site highlights a couple of new studies that look at where Millenials want to live and what they value when it comes to picking a place to call home.  It is interesting to see just how much the reported values differ from previous generations, and how little the traditional "suburbia" of the last 60 years appeals to this new and very large cohort.  

In the first study, here is what the Millenials said:

  • 54% would consider moving to another city if it had more or better options for getting around.
  • 66% said access to high-quality transportation is one of the top three criteria for deciding where to live.
  • Nearly half of those who owned a car said they would consider giving it up if they could count on public transportation options.
  • 86% said it was important for their city to offer opportunities to live and work without relying on a car.

Michael Myers, Managing Director at the Rockefeller Foundation sums it up like this:

"This survey reinforces that cities that don't invest in effective transportation options stand to lose out in the long-run. As we move from a car-centric model of mobility to a nation that embraces more equitable and sustainable transportation options, Millennials are leading the way."

The second studyqueried both Millenials and Baby Boomers and found that both group want many of the same things:

  • Better transportation options
  • Walkable communities
  • Technology-enabled cities
  • Housing that would allow “aging in place.”

The study also found that...

68% of respondents believe the U.S. economy is fundamentally flawed, and that the path to prosperity lies in building up local communities—not through recruiting companies but by concentrating on these same basic elements of desirable places to live.

Interesting trends to watch.


Are Your Listing Photos Swipeable?

If you don't have professional quality photos that tell the lifestyle story of every home you are marketing, you are doing yourself and your sellers a disservice.  End of story.

Have you looked at the key role that GOOD photographs play in connecting with buyers on Realtor.com/Move's new Doorsteps Swipe app?  You should.  Especially if you are looking to connect with Gen X, Gen Y, or Millennial buyers. 

Doorsteps Swipe is a good example of the changing ways in which buyers and sellers are being exposed to and interacting with your marketing information. 

Doorsteps


What’s up in Manhattan? Number of sales and prices!

800px-Manhattan_from_top_of_the_rock[1]

According to the just released EllimanReport: Quarterly Survey of Co-op and Condo Sales, the Manhattan market is going strong.

Highlights:

Most first quarter sales in seven years as listing inventory stabilized.
There were 3,307 sales, 34.6% above the same period last year, marking the highest first quarter total in years. Listing inventory was essentially unchanged at 4,968 after three years of declines.

Average price per square foot set a 25-year record.
The average price per square foot of a Manhattan apartment reached a record $1,363, 23.6% above the prior year level. Median sales price increased 18.5% to $972,428 from the prior year level, but remained 5.1% below the record set in the second quarter of 2008.

Days on market and listing discount tightened. 
The time to market a property was 17 days faster than the same period last year, falling to 115 days.  Listing discount decreased 2.6% from 4.3% in the same period last year.

For more information on the city’s real estate market, check out the EllimanReport and a recent article in The New York Times.