An article by RISMedia highlights the results of a new survey by Coldwell Banker which found that the luxury real estate market is being propelled forward by wealthy younger buyers. This group of buyers is also willing to spend more on property compared to wealthy buyers aged 55 or older.
The survey covered Americans over the age of 21 living in households earning a minimum of $250,000 annually, and it found some 43% of younger buyers are considering purchasing a during the next year compared to just 21% of wealthy buyers aged 55 or older. Younger buyers are also spending much more, with the average purchase being more than $2.1 million compared to older buyers whose average purchase is a mere $1.1 million.
Not surprisingly these younger purchasers have slightly different needs than older buyers and tend to want additional amenities such as a home gym and home theater, a pool and outdoor kitchen, a wine cellar and several garages. They are also more likely to be interested in purchasing LEED certified properties or properties designed to be eco-friendly. In addition they tend to look for homes that are fully automated and which are designed to be open plan. Features such as tennis courts, staff accommodation and separate catering kitchens are less important.
The survey also found that even though many of these wealthy purchases travel internationally they tend to only buy homes in the US. Just 6% of those surveyed owned a home in another country. Most considered the properties location to be very important when considering whether or not to purchase a home. Other factors such as the condition of the property, its price, any views from the property and amenities were also considered to be of value. In spite of location being of great importance, nearly a quarter of those surveyed had the freedom to choose a property just about anywhere provided it fitted in with their lifestyle.
Apparently even the very wealthy are concerned about interest rates, as more than a third of those surveyed cited low interest rates as being the reason for considering a home purchase. Additional reasons for wanting to buy a home included viewing a property as being a good investment, and wanting to own a property in a specific location.