High net worth individuals aren’t being deterred by rising prices. Fifty-four percent of them say they plan to make an investment in real estate this year, up from 48 percent in 2014, according to a survey of the wealthiest 1.5 percent of the U.S. population by Coldwell Banker Previews International and Ipsos Connect.
High net worth individuals surveyed give the following reasons for buying real estate:
- 40% cited investment attractiveness
- 39% desired to live in a specific location
- 38% sought a safer investment than the stock market
- 31% wanted to take advantage of low interest rates
Among the group members, residential real estate comprises an average 38 percent of their net worth. What’s more, 43 percent purchased real estate in the past five years, and 57 percent paid cash for their home purchases, according to the survey.
What are the most desired home features among the wealthy? The survey found that its respondents listed as the top desires in a property:
- “Move-in” condition: 43%
- Fully automated and wired home environment: 41%
- LEED-certified green home: 36%
- Open floor plans: 36%
- Home gyms: 34%
- Home theaters: 32%
- Safe rooms: 30%
Among high net worth individuals, Generation X members tended to pay the most for their properties. On average, they spent $5.24 million on their home purchase compared to $4.96 million by millennials and $1.55 million among baby boomers.