Tag Archives: luxury real estate news

WSJ article – Luxury Market Trends/Buyers

Interesting article by Candace Jackson in the Wall Street Journal.

The New Global City
Russians in London, Brazilians in Miami—and Chinese almost everywhere. The biggest players in the residential-real-estate scene today often come from halfway around the world.

She looks at New York, Miami, London, Paris and Hong Kong.
Read the full article here: http://online.wsj.com/article/SB10001424052748703730804576317150261940990.html

Enjoy,
George

Affluent Not Participating in Social Media?

While most of us are using social media networks on a regular basis, a recent survey suggests that our market, the luxury resort real estate market, may have a different opinion of social media.

Here’s the article I read via Luxury Insights -

Half the affluent opting-out of social media

Posted: 26 Apr 2011 01:45 PM PDT

Anti-social or just busy with other things, half of the affluent say they do not participate in any type of social media according to the Spring 2011 Affluent Market Tracking Study conducted by The American Affluence Research Center.  

Some highlights from the study:

§In contrast to the March general Consumer Confidence Index of The Conference Board, which fell over 10% to the low levels last seen in Fall 2010, the affluent, who account for about half of all consumer spending, report a better outlook for the economy and their personal spending plans.

§Spending plans for all 17 products and services tracked by these surveys are much stronger than in the Fall 2010 survey. 

§There is also improvement in the plans to make major expenditures such as for a new auto, a cruise, and a vacation home.

§While 65% of the affluent own a smart phone or a tablet (or both), the remainder have regular access to a computer. Half of the affluent say they do not participate in any type of social media.

§Among those that do participate in social media, only a quarter say they use social media to receive regular communications about product and related information from a manufacturer or retailer.  In other words, only 12.5% of the affluent say they are using social media to receive regular product information from a manufacturer or retailer. This relatively low number (12.5% of the affluent) may be surprising given all the amazing statistics being circulated by various research and traffic tracking companies about the volume and growth of e-commerce, the ubiquitous mobile devices, and the urgent emphasis to invest time and money into various forms of mobile apps and promotional activities online through proprietary sites and social media. It is important to understand who will actually be reached through mobile devices and social media (and whether the ROI is reasonable), what technology is needed to be compatible with the various different mobile and other receiving devices, and who might be missed if communications are limited exclusively to these channels.

§About 59% of the affluent say they are not familiar with the concepts of private residence or destination clubs. Concept familiarity, which is essentially the same as in 2007, is strongest among the younger (59 and under), higher income, and higher net worth groups.

§About 10% of the affluent say they will seriously consider acquiring access to a vacation home during the next 12 months. Plans to make an acquisition increase as age declines, income increases, and net worth increases. About 2.9% are considering two types of vacation home acquisition. Wholly-owned homes are the most favored type of vacation home access. Wholly-owned homes used primarily on a seasonal basis are more popular than those used frequently throughout the year. The only exceptions are the 50 to 59 age group, the under $200K income group, and the lowest net worth group.

Overall, this is good news.  Among the successful, outlooks are more positive and spending plans are up.  

Remember that insights based on good research and data can help you identify opportunities and threats and adjust your marketing strategies and plans accordingly.

New Look for Luxury Resort Broker Blog

This year Spring cleaning has inspired me to build a new look (and format) for my Luxury Resort Brokers blog!

You can still feast your eyes on my older posts by clicking here.  These archived posts go back to 2009, but a lot of the information is still relevant.

The Canadians are Coming – article

Here’s another Luxury Insights read I thought you might like to read.

The Canadians are Coming, eh?
Posted March 28, 2011

Motivated by a strong Canadian dollar and what they perceive as bargain U.S. home prices, as many as 1 in 5 Canadians say they’d consider purchasing property in the U.S.

A new survey for BMO Bank of Montreal and conducted by Leger Marketing reveals that as home prices have dropped in the regions of the U.S. which are traditional destinations for Canadian snowbirds, interest in purchasing U.S. property has risen.

Want to know which Canadians to target?  Regionally, those in Alberta (31 percent), British Columbia (28 per cent), and the Prairie Provinces (27 per cent) are most interested buying property in the U.S.

Bank of Montreal suggests that Canadians wanting to purchase in the United States should consider the questions shown below.  While some of these are lifestyle questions which the prospects will have to answer for themselves, to answer other questions, a REALTOR’s input will be valuable.  If you want to tap into this market, make sure you are knowledgeable and can refer prospects to tax advisors and others as needed.

Questions for Canadians Considering Purchasing in the United States:

- What states and neighborhoods fit your needs?
Since you are responsible for property maintenance, consider how easily you can access your property from your Canadian home throughout the purchasing process and after acquisition.
Consider flights and airlines, if you can fly there direct, and the cost.
Research and even ask locals about the community to ensure it suits your needs.

- What to consider when financing the purchase with a U.S. based financial institution?
It is important to be aware of the differences in mortgage financing and how interest is charged in the U.S.
What mortgage money is available to international buyers?
Furthermore, understand the impact of penalties and withholding taxes if and when you decide to sell your home in the U.S.

- Do you understand the status of the property?
Understand the terms of the property. For instance, is it labeled as short-sale or on foreclosure?
The status of the property can have a variety of implications. Be sure to consult an expert before making any buying decisions.

- How will you use your property?
Is your purchase for investment or lifestyle purposes? This will affect where you buy and how you hold the property. Also, understand the options available and what will benefit you in the long run.
If your purchase is for income purposes, keep in mind that renting your property means added responsibility. Research the possibilities of increased utility usage, property management needs and the vacancy rate in the area to ensure you’re prepared. Investment properties can be subject to taxation in two countries, so make sure you speak to a taxation specialist.

- How much time will you spend south of the border?
Consider how many months of the year you’ll be living there so that your purchase reflects your lifestyle.
Be aware that there are rules regarding the amount of time you can spend in the U.S. before being considered a U.S. resident and subject to paying income tax.