The Wealthy Aren’t Reluctant to Spend
Here’s a quick recap of a couple of interesting recent articles in The New York Times:
The first was about the spending largesse of the ultra-wealthy. Despite tough financial times, the very rich continue — happily– to spend. For many, this means investment in high-end luxury housing — especially in New York. In fact, not only are apartments of between $4-$25 million still selling at a brisk clip in Manhattan, but the high-end rental market is doing quite well too. The Times reports:
“In just the three weeks since it arrived on the market, a four-bedroom apartment at 15 Central Park West, advertised for $55,000 a month, has gone to contract. The broker, Roberta Golubock with Sotheby’s International Realty, said she showed the apartment to eight financially qualified prospects.”
The ultra-wealthy say that the financial woes in the economic market have yet to effect their portfolios, and many are prepared to ride tough times out. Anecdotally, I have heard much the same thing from realtors in Boston who work with high-end clients, and even among art dealers who work with the wealthy.
The second regards the international housing market. According to the Times, the American housing woes have spread around the globe, to Ireland, Spain, Britain and India, all of which have seen housing prices drop significantly in recent months. In New Delhi, housing prices have dropped 20 percent over the last year. In Britain, housing prices have recently dropped by 2.5 percent. Houses in Spain are estimated to be overvalued by 15 percent.
What does it all mean? Maybe simply a few more investment options for international buyers who can afford it.
Image: freedigitalphotos.net
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