With uncertainty plaguing today's markets - what with China's slow down, oil prices decreasing, conflicts in the Middle East, and the threat of rising interest rates in the U.S. - investors are once again looking to store their money in a safe market, one that might bounce back in a cyclical promise.
Luxury homes across the U.S. and most of the world are quickly being snapped up again. For example, a home in Amagansett, N.Y. sold for $4 million in just six weeks, nearly four times faster than similar homes were selling just a year ago.
There's two main attractions for the world's wealthiest to invest in high-end residential real-estate, writes Kerry Hannon for The New York Times: they want something in return for their investment and they want a tangible asset.
“People feel more comfortable investing in things they can see and touch and feel, that’s the tangible nature of real estate,” said Michael Sonnenfeldt, founder and chairman of Tiger 21, a network of over 440 members who collectively manage more than $40 billion worth of personal investable assets.
Generally speaking, buying an upscale property to use as a getaway has traditionally been viewed as a lifestyle investment. Stocks and bonds cannot give you the same satisfaction as a heated saltwater pool with a waterfall, surrounded by mahogany decking, and Amagansett ocean breezes.