Real estate and luxury: because high-net-worths prefer to rent
As we had already anticipated in one of our previous in-depth analyzes, the sales market for the Big Apple seems to be stalling. However, what we did not understand and is currently revealing is the lack of interest in sales contracts, to the advantage of renting contracts.
This phenomenon would seem completely normal, however, if reference were made to a generalized, non-specific target. What makes us think and leaves us slightly perplexed is the fact that the segment of investors examined is that of luxury, specifically that of high-net-worth. This term defines that category which enjoys a huge amount of wealth to be able to afford an investment of a certain level.
So why, even in the luxury segment, are these problems encountered?
In reality the real problem is the one limited to the purchase of a property and not to the rent. This is because new areas destined to the ‘luxury rental‘ ’are being built, more and more adherent to the needs of the individuals concerned, but, according to many, even more convenient.
According to Malin, president of City Habitats, some "high net worth" investors choose to rent, rather than buy, their own homes, as they are motivated by the high level of services offered and (above all) for flexibility deriving from the "partial" investment and not in the medium to long term.
Still the representative of the CH, continues his speech emphasizing the difference compared to previous years; periods in which people felt an urgent need to become a property owner. Today the needs have changed, and we opt for the possibility of being less constrained in the future, of being able to modify, change structure without feeling the weight of a considerable and limiting financial outlay.
Jordan Sachs, CEO of Bold New York, stressed how this situation also affected price changes.
Although the buyer market is very strong, in terms of portfolio, the increase in the price of real estate seems to further ward off the desire of the few to appropriate a property definitively.
Yes, even luxury at times seems to have hesitations, even if, as we have said before, a strong determinant is that generated by the psychological impact of the individual when he feels oppressed by such an important and capable investment. to block it for several years.
Even in real estate, therefore, the '' concerns '' and the '' necessities '' of a new society are pouring in, which is based on the flexibility, adaptability but especially on the serenity of an investment more tied to the contingency and less in the medium to long term.
What is expected? Surely this situation will not be permanent, and you will probably arrive at a historic moment in which you will be looking for greater stability, which can only be guaranteed by a sales contract.
But until then, we will continue to monitor the situation!
This phenomenon would seem completely normal, however, if reference were made to a generalized, non-specific target. What makes us think and leaves us slightly perplexed is the fact that the segment of investors examined is that of luxury, specifically that of high-net-worth. This term defines that category which enjoys a huge amount of wealth to be able to afford an investment of a certain level.
So why, even in the luxury segment, are these problems encountered?
In reality the real problem is the one limited to the purchase of a property and not to the rent. This is because new areas destined to the ‘luxury rental‘ ’are being built, more and more adherent to the needs of the individuals concerned, but, according to many, even more convenient.
According to Malin, president of City Habitats, some "high net worth" investors choose to rent, rather than buy, their own homes, as they are motivated by the high level of services offered and (above all) for flexibility deriving from the "partial" investment and not in the medium to long term.
Still the representative of the CH, continues his speech emphasizing the difference compared to previous years; periods in which people felt an urgent need to become a property owner. Today the needs have changed, and we opt for the possibility of being less constrained in the future, of being able to modify, change structure without feeling the weight of a considerable and limiting financial outlay.
Jordan Sachs, CEO of Bold New York, stressed how this situation also affected price changes.
Although the buyer market is very strong, in terms of portfolio, the increase in the price of real estate seems to further ward off the desire of the few to appropriate a property definitively.
Yes, even luxury at times seems to have hesitations, even if, as we have said before, a strong determinant is that generated by the psychological impact of the individual when he feels oppressed by such an important and capable investment. to block it for several years.
Even in real estate, therefore, the '' concerns '' and the '' necessities '' of a new society are pouring in, which is based on the flexibility, adaptability but especially on the serenity of an investment more tied to the contingency and less in the medium to long term.
What is expected? Surely this situation will not be permanent, and you will probably arrive at a historic moment in which you will be looking for greater stability, which can only be guaranteed by a sales contract.
But until then, we will continue to monitor the situation!
