Affluent Owners Snatch Up Second (And Third, And Fourth …) Homes
The world of home owning runs the gamut from the rich to the poor. While some borrowers can only focus on sub-prime mortgages in order to make their dreams come true, others aren’t satisfied with merely one mansion.
In fact, the latest consumer-trend study published by Architectural Digest (united with Sotheby’s International Realty Affiliates, Inc.) finds that affluent homeowners are planning to acquire additional residences in the near future.
The study, “Seeking a Luxury Lifestyle,” discovers that one in three Architectural Digest subscribers (36%) intend to acquire a secondary/additional home in the next two years. The study further reveals:
- Of those Architectural Digest subscribers who already own three or more homes, 49% percent plan to acquire an additional home within two years. We somehow doubt they’ll need a bad credit mortgage to accomplish this task;
- Of those who already own a second home, 35% plan to acquire a third home within two years; and
- In an indication that young affluent consumers are in the market for second homes, 44% of those under age 45 stated that they may acquire a second home in the near future.
Although geography is the primary driver when it comes to searching for a secondary residence, lifestyle amenities are becoming increasingly critical. Approximately one in three (32%) of the Architectural Digest subscribers polled know the characteristics and amenities they desire and would search in a number of geographic locations to find the home that matches what they want, rather than looking purely by location.
Subscribers with household incomes under $400,000 (38%) are more likely than their wealthier counterparts to indicate they would search in a number of locations to find the house that meets their amenity checklist.
For these home buyers, the issue is NOT when to purchase; but rather where to look and what to include in the residence.
The study finds that waterfront property (75%) is the most sought-after amenity when buying a secondary residence. Surprisingly, gourmet kitchens (10%) and swimming pool (5%) were among the least significant amenities. Here’s a rundown:
Oceanfront/waterfront: 75%
On/near golf courses: 48%
Near aquatic activities: 45%
In-home fitness center: 34%
Media room/home theater: 32%
On/near ski slopes: 28%
Wine cellar: 18%
Gourmet/large kitchen: 10%
Large backyard: 5%
Pool: 5%
Of course, those that can afford to even consider these features are in the minority of potential owners. Many of them may not even need to finance the purchase with the use of any mortgage loans.
But don’t worry if you don’t fall into this category. There is plenty of assistance available for those interested in taking out a loan.