The Mega-Rich Love Real Estate
The Home Buying Habits Of The Very Wealthy
Wealth-X and Sotheby’s International Realty compiled data on the mega-rich and their real estate habits. In this case, mega-rich is defined as someone who has at least $30 million in assets (homes included). What they discovered is that not only did the mega-rich have multiple properties—2.9 on average—their properties totaled an average $12.9 million.
Unsurprisingly, billionaires had more properties, averaging four with two of them designated as vacation properties. The average cost of property assets each billionaire carries is $94 million.
The mega-rich are buying up more property, too. The value of the properties owned by the people in that category rose by an average of 8 percent in 2014. Most mega-rich opt for more valuable second residences, choosing a second residence worth 45 percent more than their first residence. Generally, the second residence is twice the size of the first and sits on 10 acres of land.
These homes are usually purchased in hobby-driven areas, such as near a ski resort or beach. New York City has the highest number of properties owned by the mega-rich.
Fortunately for the domestic real estate market, international mega-rich look for properties in the United States and American mega-rich buy the majority of their properties on domestic soil. The U.K., France, and Switzerland topped the charts of international buyers, even as less than one third of American mega-rich made the international leap. When they do buy abroad, though, they most commonly purchase in France, Switzerland, Australia, and the U.K.
Whether you fall in the mega-rich category or are looking to buy your first home, you deserve to work with a San Ramon Valley real estate team who is committed and knowledgeable. Contact the Zwahlen Team for all of your Danville area real estate needs. We are here to help you with all of your real estate needs in Northern California!