Connecting our Clients to the Lifestyle of their Dreams – ALLURE OF THE SECOND HOME: WHY AFFLUENT BUYERS ARE DISPLAYING CONFIDENCE IN RESORT MARKETS

The potential market for luxury property has never been bigger.

In our most recent research report, The Allure of the Second Home: Why Affluent Buyers are Displaying Confidence in Resort Markets, we explore the current state of the second home market, as it relates to the affluent consumer, focusing on the top 10% and above income earners in 26 countries, who are in the market to buy or sell a second or vacation home in the next three years.

Who is Considering Buying and Selling?

Buyers, age 40 and younger, are taking over the luxury second home market, but lack the experience of Gen X and Boomers

Luxury second home buyers and sellers have similar demographic profiles in terms of age, geography, education and professional status. As a result, their financial profiles are similar, with the only noticeable difference being that sellers have slightly higher asset levels.

Interestingly, this group has notably high assets for their age. About half of the qualified consumer market is under the age of 40, yet their aspirations for purchase are in the millions of dollars.

For most, this is not their first time purchasing a second home—the average number of residences is over three and 14% own at least five residences currently. Driven not by the Millennial group, but rather by Gen X and Boomers. Of Gen X luxury second home buyers, 17% have more than five homes, along with 19% of Boomers in this buyer group.

Current State of the Resort and Second Home Market

Affluent consumers are in acquisition mode

Those who are in the market to purchase a luxury second home are adding to their portfolio and unlikely to sell their existing second home at the moment—thus there are more buyers than sellers. Interestingly too, this means that sellers are also buyers, but buyers are not necessarily sellers.

LPI_AllureOfTheSecondHome_TotalGlobalAffluent

Buyers show more confidence in the market than sellers. More than half of buyers believe that now is a good time to purchase a second home, while relatively few think it is a good time to sell. As noted previously, these consumers are quite savvy when it comes to homeownership; 76% own two or more properties currently.

LPI_AllureOfTheSecondHome_GlobalWealthTrend

What are Second-Home Buyers Looking for?

Wellness is the New Luxury

Affluent consumers have begun living with wellness in mind and this also influences the second home market. In fact, 96% take at least one aspect of wellness seriously as part of their daily routine. Beyond physical and emotional wellness, which most affluent consumers focus on, luxury buyers are keen to improve their intellectual, social and even spiritual wellness.

Amenities that address these needs are sought by buyers and especially resort and second home buyers because of a growing demand for communities that take a holistic approach to overall wellness.

The Bottom Line

With more buyers than sellers, the demand for second homes is keeping home values high for luxury properties. Younger buyers are becoming more prominent, currently making up nearly half of the market, however, older generations have more experience buying second homes. Multiple residences, as well as customized experiences, including wellness amenities becoming a priority.

Would you like more information – just reach out and let’s chat:  214.769.2142

Advertisements

Connecting our Clients to the Lifestyle of their Dreams – OUTDOOR ENTERTAINING TRENDS 2019

As warmer weather approaches, party planners start buzzing about outdoor entertaining. For many people, nothing can beat a springtime garden party, mid-summer poolside gathering, or early fall bonfire. With good planning and vision, your outdoor gathering can boast just as much luxury and style as any indoor soiree.

In general, the trend for outdoor entertaining in 2019 will be a blend of comfort and elegance, with well-designed outdoor spaces, thoughtful food and drink, and bursts of creative flair like unique flower arrangements or craft cocktails.

If you’re interested in incorporating some upcoming trends into your outdoor entertainment plans, here are some ideas to get you started:

JUST ADD FIRE

Attractive and functional fire pits are a popular choice for those who frequently entertain outdoors. Safer and more elegant than an open fire, the right fire pit can enhance your patio decor while providing a cozy spot for guests to gather. Outdoor dining tables with built-in fire pits combine functionality with comfort and fun, and fire pits can be found in many styles to match your taste. Toasting marshmallows can be a luxurious activity with specialty flavored marshmallows and whimsical skewers.


ECO-FRIENDLY ENTERTAINING

Sustainability is a trend across the board, and for outdoor entertaining that means sustainable decor and tableware. With more and more companies offering eco-friendly products, hosting a sustainable party can still be both elegant and tasteful. Melamine dishes come in a spectrum of colors and patterns and are perfect for outdoor dining. Try fun patterned paper straws instead of plastic ones. As a bonus, these alternatives feel much more luxurious than plastic.

Local food is a big part of the sustainability trend, and it fits right into the atmosphere of an eco-friendly outdoor gathering. Find a high-end catering company that sources local ingredients, and let your guests know where the food is coming from. From quality grass-fed steaks and locally caught fish on the grill to seasonal fruits blended into cocktails, sustainable food can elevate your festivities.


CAPTIVATING CORAL

Adding color to outdoor spaces is an exciting trend for 2019 (no more greige!), and what better way to embrace this concept than using Pantone’s Color of the Year? This year, the color is Living Coral, a mellow, uplifting shade. Try incorporating coral into your outdoor design with throw pillows, blankets, outdoor rugs, and tablecloths. You could even work it into your flower arrangements or cocktail recipes. Bold color choices are also trendy, so don’t be afraid to use colors that pop for your outdoor entertaining.


CREATIVE LIGHTING AND FLOWERS

Now that more extravagant lighting solutions are available and accessible, expect creative hosts to ramp up their lighting style when planning outdoor gatherings. Layered lighting, projections, and strong lighting statements are all ways to create an impressive atmosphere for outdoor entertaining.

Floral arrangements have moved beyond simple tabletop centerpieces and are often a striking piece of design in and of themselves. Monochromatic floral designs, flower ceilings, and unique plants like succulents will be gracing patios and gardens in 2019. If floral design is beyond your own comfort level as a host, hire a good local florist to help prepare for your outdoor parties.


INNOVATIVE COCKTAILS

Nothing enhances an outdoor gathering like the perfect cocktail. For outdoor entertaining in 2019, cocktails will have surprising ingredients – think turmeric or mushrooms. Locally-produced spirits (especially gin) will be a hot ingredient and educating guests with tastings and flights will be a highlight. Even mocktails will be elevated beyond the standard Shirley Temple as more sophisticated nonalcoholic mixers and recipes are available.

Whether you follow some of these trends or bring your own creative touches to your outdoor parties, this entertainment season is sure to be full of fun, comfort, and luxury.

Looking for more entertaining inspiration? Check out our tips on how to Pamper Your Party Guests with The Finest Offerings.

For more information on outdoor entertaining, just connect with us by calling or texting 214.769.2142.