Huge Recession Ahead?
Details on the 11:00 PM News
According to the news media, the past 18 months have seen the nation’s economy declining. Nevertheless, to appreciate what is reported in newspapers and nightly broadcasts, you have to come to a higher understanding of to whom the news media touts their messages. The target audience: mass America. However, there is a small minority of the market that the news does not cater to as well.
Mass America Doesn’t Want to Hear About the Rich Staying Rich
The affluent market marches to the tune of a different drummer and while everybody knows someone who says “I don’t watch the news because of all the negative media,” there are those who not only watch the news, but also absorb its message daily in order to profit from the market’s ups and downs. The affluent consumers in this country have always utilized the uncertainty of the mass consumer to take advantage of unmet consumer wants and needs. This astute mentality was embraced by the late Sir John Templeton, whose empire was built on a few simple founding principles. One such principle he advocated was that when the market was selling, he did everyone a favor and bought. Likewise, when the market was buying, Templeton did them a favor once again and he sold all that he had. Savvy investors today are quietly demonstrating the same mindset.
Realistic Expectations of the Affluent
According to the 2008 Coldwell Banker Previews International® Luxury Survey, 85% of high-end home owners expect home prices to increase over the next five years. The top locations which the affluent will gravitate towards include island and/or rural country living, (data supported by approximately 49% of respondents). The outlook held by the affluent is one totally different than is being touted in the news media today. Just to give you an example, the 85% surveyed expecting prices to increase over the next five years represents a sharp increase from the 66% tallied in just 2007. More importantly, 4 out of 5 of these homeowners surveyed believed the increase in value will be a “significant” to “moderate” 81%. They see these as long term gains coming from their real estate investments.
Dream Homes in the Allure of Warmer Weather
Interestingly enough, the allure for warmer weather and being close to the water ranked as some of the highest percentages for respondents – a whopping 45% said they want to be near a beach and another 23% said they want to be near a lake or a river. The survey also revealed some of the must-haves for the luxury amenities, which included designer kitchens, custom home centers, and indoor gyms and fitness centers. Also rounding out the surveys were boat docks and golf courses. It appears that this market will move more towards well designed communities located on the outskirts of cities with good airport access and the ability to be in the city with just a short drive. Properties with these amenities and locations will see the most dramatic increases in the next few years as affluent buyers are quietly stacking their portfolios for the future.
Bottoms Up!
The bottom line is that most affluent buyers seem to go in the direction which is a little different than the mass market catered to by the news media. While the market may indicate that there are tough times at the present, the more affluent market thinks ahead with great prudence about the future of the market instead of where the market is today. While the Coldwell Banker Luxury Survey does not expose any revelations, it does indicate that America’s affluent think differently, invest differently, and achieve more simply by looking at the world with a different, more futuristic, set of eyes.
The Luxury Survey was conducted by an independent research firm and commissioned by Coldwell Banker Previews International®.
About the Author:
Author, speaker and financial expert, John A. Palumbo will take you “Where Wall Street Can’t”. As one of the nation’s leading authorities on unique investing strategies. John has been tagged by the press as the “Donald Trump of the South” and the “Ripley’s Believe It or Not” of the real estate industry. For over 2 decades, he has developed his maverick investing tactics, which has earned the title of “America’s Investment Gambler”. As a regular guest on Jacksonville’s WJXT Channel 4’s The Morning Show and radio broadcasts nationwide, he continually provides myth-shattering strategies and thought provoking insights on alternative means of getting the most out of your money. You can contact John directly at PalumboJ@aol.com or (904) 641-2043.
