Increase in interest rates. Natural disasters. There are a multitude of reasons not to buy a house on the current real estate market – especially in certain areas. But ultra-rich are not imperturbable.
As most of the market is recovered of his pandemic wooden mouth cocvid-19Megamans in certain cities have been sheltered from the slowdown. Across the country, billionaires are still spending tens of millions of dollars over homes, despite the traditional logic telling them to park their money elsewhere.
A new report From Realtor.com says that six cities have become the favorites of the elite this year, and two of them are in California. The summits of the fat crew are Malibu, San Francisco, Aspen, New York, Miami and Palm Beach, Florida.
The six experienced sales north of $ 50 million in 2024, and a handful experienced much higher sales.
In May, A compound of private island In Palm Beach reported $ 152 million, establishing the price record of all time in the state of Sunshine. California saw a record a month later when the founder of Oakley James Jannard Sold its propagation of Malibu For $ 210 million.
For each excuse not to buy, billionaires find a bypass solution, according to the report.
For example, climate change and its training effects – floods, fires and storms – threaten houses in the coastal communities of California and Florida. But federal regulations on emergency management agencies and insurers have increased standards for home manufacturers and promoters, requiring an increase in wind protection and floods. Buyers are well wealthy in Florida, for example, see many new houses, particularly expensive, as well as the Hurric down.
Home preacted by storms can be too expensive for some, but not for those who have a budget of $ 50 million or more.
The same logic applies to other environmental disasters, according to the report. The rich hunters of beach houses can minimize the effects of coastal erosion by buying a house with a concrete foundation and a brand new dike, which protects against the waves crash and the narrowing beaches much better than the older and cheaper houses built on wooden stilts in the 1950s and 60s.
For residences in fire zones, billionaires have held areas with fire suppression systems and even hiring Private firefighters To protect their houses from the flames.
The other factor prohibits certain potential buyers in the housing market? Flowing interest rates.
Unlike the pandemic, when rates have dropped to 2% or less, rates on the modern market oscillate approximately 7%.
Mortgage payment with a rate of 7% can cost thousands of dollars more per month – or even tens of thousands of others for the properties of several million dollars. But billionaires are not at the mercy of interest rates for several reasons, depending on the report.
Some wealthy buyers can pay in cash for luxury ownership, completely avoiding interest.
Others are able to negotiate special agreements with banks due to their longtime relations and massive assets. In other words, the more zero you have in your account, the better you will get a bank rate.
