Speculators Disappear as Luxury Investments Lose Their Luster
Focus: ALTERNATIVE INVESTMENTS
What effect does any of this activity or lack of activity, for that matter, in luxury markets have outside the rarefied circles of the super-rich?
It’s hard to see a direct effect on the middle class, though in a seeming paradox, luxury real estate’s decline, instead of spreading a contagion of lower prices to the non-luxury spectrum, may actually increase the price of properties below the luxury class.
The reason being that would-be luxury buyers are now seeking greater value at lower prices, increasing demand for sub-luxury property.
With all of this activity, whether it’s luxury or sub-luxury, there are jobs at stake as well. These include profits and losses for luxury goods makers and the myriad of other business directly or indirectly to the real estate market.
On the positive side, if you happen to win the lottery or inherit a boatload of money in the next few years, you may be able to pick up a high-rise condo in South Beach, a vintage Ferrari, or a Picasso painting for a steal in the next couple of years.
To find out more, go to www.stevepomeranz.com