Is anyone else interested in the luxury homes market?

Question

As you may already know, the luxury home market isn't as greatly effected with the sub-prime mortgage meltdown, as most of the buyers of luxury homes have the necessary capital to purchase.

In addition, with the strength of the euro and the pound against the US dollar, now is a great time for the British and others from abroad to invest in US luxury homes.

There are many other reasons to explore opportunities in this market too! I'm looking to work with others who have the desire to learn and will pay it forward. I'd love to hear some thoughts on this and see what we can do together.

I'm expecting success and looking forward to meeting you! :roll:

Account Closed · Answer

The truly wealthy aren't much affected by th economic troubles of us peons.

The people who are paying 10 million dollars for a house aren't worried about ARMS adjusting.

However, nobody gets rich by squandering their money, and people with money are value shoppers. They won't pay 10 million for just any fancy big house.

I would say the really expensive real estate is going to do just fine in really desirable areas to live or vacation.

Jenny F. · Answer

our luxury home market is suffering quite a bit.  million$ + homes are sitting for years when they used to sit for days.

Many of the builders that have started buildng the luxury homes are just getting the shell of the home built until it sells and those are sitting even longer.

Racquel Murphy · Answer

Sherri,
Sent you a pm!
thks,
-Racquel Murphy
New Home Locators

Timothy W. · Answer

Toby,
I understand your position as a realtor looking at mls properties but we're talking about a piece of property well beyond the means of most people.  She didn't get this through a realtor.  A porn film producer was going through a divorce and she knew a contact through the bank who knew she had the cash to get it done.

Toby Munk · Answer

Tim,

if FMV is fair market value then I have to strongly disagree. The Aspen market has never seen a down market and the last stable period after 2001 is now 7 years back. It is hard to buy things at 100% fair market value in Aspen, let alone below that.

Chateaus are not very common around here even though we have as few condominium developments that are called Chateau Aspen, Chateau Chaumont, Chateau Dumont etc...

We are indeed seeing more and more international investors. So far mostly British and latin american buyers. A few eastern European sprinkled in with the odd German etc.

Will Barnett · Answer

In Dallas there is a lot of speculation whether their new development project to make the Trinity River kind of like the Riverwalk in San Antonio will increase local market values.  I've been thinking maybe I should get in the game with luxury townhomes and even commercial property.

There is a lot more risk involved than I am normally used to.  The market around there right now is really depressed, almost ghetto-like.  If one had the money to play with, however, it could be something really big.

Timothy W. · Answer

Toby - I saw that from an Italian friend who lives in New Zealand and bought a Chateau in Aspen.  Bought it at about 40% FMV and with the currency conversion, she made a killing on it.  The US economy may be screwed temporarily, but apparently international investors are smelling a rebound coming.

Toby Munk · Answer

The high end second home market is somewhat shielded from the trouble. People always had to put more down (20%) and people that are in the second home market are at least moderately successful to even be thinking about a vacation property.

I think in a moderate economic down turn, the wealthy will actually diversify out of stocks and into real estate, into markets where they feel their money is safe.

Richard F. · Answer

As a PM, I manage a few oceanfront and luxury homes and penthouse condos, furnished and unfurnished.

Timothy W. · Answer

Funny - I'm working 2 seperate markets right now - rental property where the banks got screwed by the subprime default and I'm getting them for pennies.....and beachfront mansions in Belize.  Two ends of the spectrum here that's for sure.  I haven't got a close in Belize yet - buncha leads.  Working on it though - wouldn't mind picking up some euros outside the US and keeping it outside the US tax system.  :-)