Amid economic and political uncertainty, high-end buyers want to put their money into tangible properties
A second or third high-end residence has several upsides. The wealthy buy luxury properties to diversify their portfolios, and price appreciation and rental possibilities turn the assets into money makers.
Most of all, though, is that owning an extravagant second house is simply really, really cool.
The New York Times reports that many high-net-worth investors are purchasing second or third high-end residences as safety nets. Economic and political factors, such as rising interest rates in the U.S., China’s slowdown, and low oil prices, make other forms of investing seem risky compared to buying tangible properties. Buyers are spending $1 million or more for homes in Panama, France, Spain, Portugal, and the Caribbean.
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.