The rising price of real estate isn't deterring those who can afford to buy the best of the best. According to a new survey of high net worth individuals (the wealthiest 1.5 percent of the population) by Coldwell Banker Previews International and Ipsos Connect, 54 percent of them are planning to invest in real estate this year.
Survey respondents gave a good endorsement of the U.S. real estate market, reporting that on average, 38 percent of their net worth lies in residential real estate. Moreover, 43 percent of high net worth individuals have bought property in the last five years, and some 57 percent paid for these properties in cash.
The most interesting part of the survey digs in to what home features the wealthy find to be most desirable. The survey found that being “ready to move-in” was the most desirable aspect, according to 43 percent of respondents. Other features include a fully automated and wired home environment (41 percent); LEED-certified green home (36 percent); Open floor plans (36 percent); home gyms (34 percent); home theaters (32 percent); and safe rooms (30 percent).
Looking at the demographics of high net worth individuals, the survey found that Generation X members paid the most for their real estate, at an average of $5.24 million per property. This compared to $4.96 million for millenials and just $1.55 million for baby boomers.