Crypto has caught the attention of affluent and high net worth investors
CHICAGO, September 28, 2021 / PRNewswire / – Finances of a luxury home buyer, the latest report from International Luxury Wallet (LPI), discovered that the cryptocurrency, of which Bitcoin is the most recognized, is becoming an increasingly popular commodity for wealthy households around the world, now just three points behind gold in a survey of more than 3,000 people surveyed around the world.
Fifty-seven percent (57%) of luxury home buyers, and the entire affluent population, surveyed believe now is the time to invest in a safety net – with 41% citing gold and 38 % cryptocurrency as their preference. In fact, the likelihood of the two being considered tandem âBuyâ exceeds gold alone (78% vs. 41% likelihood of buying sentiment).
The wave of positive âBuyâ opinions around cryptocurrency is coming mainly from consumers of United States and the UK, although earlier this month El Salvador became the first country to make it legal.
Interest in cryptocurrency was among a number of interesting discoveries, including the following:
Luxury home buyers are willing to outbid other buyers for beautiful properties and residences, thanks in large part to huge cash reserves and record returns on investment over the past 18 months. As a group, they are extremely confident in their financial situation despite the uncertainty surrounding the new strains of the COVID-19 coronavirus.
Very wealthy individuals ($ 50 million or more in equity) have increased in number by 73% since 2015 and are conservatively estimated to have consolidated another $ 4.5 trillion in assets to the class. The number of very high net worth people added in just one year is 47,000, based on data from Credit Suisse Global Wealth Report 2021.
There is a 94% probability that a buyer of a luxury home already owns a luxury home (the primary residence has an estimated value of USD $ 1 million or more), which means that current ownership of a luxury home is a more accurate indicator of future luxury home purchase than equity alone (the median net worth of luxury home buyers is estimated at USD $ 4.5 million).
Cash is still king, as nearly six in ten (58%) finance the purchase of a luxury home with cash, of which 25% plan to make offers entirely in cash.
The resale of luxury goods continues at a breakneck pace in 2021 and Luxury Home Buyers participate in an unusual way. The study found that by returning their excess products, shoppers planned to use the product to outfit their home gyms, recreational equipment, and even artwork for display. Further in this field, the researchers met the experts of TheRealReal.com, the online luxury retailer platform, which noted in its 2020 resale report a 26% increase in quarter-over-quarter spending on home goods versus clothing, and the category at the fastest growing is the consignment of works of art.
There is a tendency to reduce consumption to compensate for the large purchase of luxury real estate. One in five buyers plan to delay buying in other discretionary categories to free up their cash flow. These buyers have two main outlets: their work and their passions. To that end, finding properties that combine their access to restorative activities with their demanding working life is a godsend.
The study found that the combination of increased wealth during the pandemic through prudent investment, coupled with reduced spending on dining, travel, and clothing, created a large cash reserve and as a result , pent-up demand for products and services.
Mickey alam khan, President of LPI commented, âThe booming and prosperous economy continues to impress and amaze, as the volume of very high net worth individuals continues to increase. These individuals are leaders and innovators in all facets of the financial arena, among them the concept of cryptocurrencies such as Bitcoin, the study found. While blockchain and smart currency are still in their infancy in the real estate world, there are cases of developers and sellers accepting cryptocurrencies for payment, but of course it’s a niche by the hour. current That said, forward-looking and technologically advanced economies such as Dubai (in which there is extraordinary wealth) are leading the charge and can indeed help set standards in the future. Although real estate brokers and developers working with such new technology are far from becoming the norm when it comes to real estate acquisition, the die is still cast, even in this area. “
To access the report, go to: https://www.luxuryportfolio.com/reports
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SOURCE International luxury wallet