PARSIPPANY, N.J., June 5 /PRNewswire/ -- Do you ever wonder who is
living within the walls of the luxury homes that dot so many communities?
According to the 2006 Coldwell Banker Previews International(R) Luxury
Survey, today's million-dollar homeowners live in nice homes complete with
entertainment rooms, designer kitchens and wine cellars, and have very
diversified investment portfolios. They are typically younger Baby Boomers
who work for a corporation, and many have a household income of less than
$500,000.
The Coldwell Banker Previews International Luxury Survey is a survey of
300 U.S. homeowners whose primary residence is valued at over $1 million
($2 million for California residents*). The survey was conducted via a
series of phone interviews by independent market research firm
International Communications Research (ICR) based in Media, Pa., in March
and April of 2006 and commissioned by Coldwell Banker Previews
International, the exclusive Coldwell Banker(R) service dedicated to luxury
real estate. In 2005, Coldwell Banker sold $55.9 billion worth of homes
valued at $1 million or more.
"Key findings from the 2006 Luxury Survey indicate that the typical
million-dollar homeowner likes to live well, but they are not living an
ultra- lavish lifestyle," says Jim Gillespie, president and CEO, Coldwell
Banker Real Estate Corporation. "We did not find huge numbers of these
consumers having amenities like heated floors (14 percent), tennis courts
(4 percent), or backyard putting greens (5 percent)."
More than one-third (35 percent) surveyed own second homes. Another 35
percent of respondents indicated that they are considering buying an
investment property, and/or a secondary residence for family use. "What
that tells us is that they understand that real estate remains a solid,
long-term investment, and one that they can enjoy," Gillespie continues.
The Primary Residence - A Comfortable Nest
Eating well and high tech entertainment are important to the million-
dollar homeowner. Sixty-five (65) percent of respondents already have a
designer kitchen, and 37 percent already have, or are considering adding, a
wine cellar to their homes. The results suggest that the comforts of home
are very important. Fifty-nine (59) percent noted they have a room in their
homes devoted exclusively to entertainment. And in those rooms, 89 percent
said that they can accommodate more than six people, with 84 percent
indicating that they have either a big screen HDTV (50+ inches) or media
systems such as DVD players and surround sound system. Fifty-seven (57)
percent have a wet bar and 24 percent have movie-theater style seating in
their entertainment rooms. Also, fifty-four (54) percent of respondents
already own, or plan to buy, original artwork.
The following represent popular amenities found in million-dollar homes:
Luxury Item Response
Security system 86 %
Professional landscaping 67 %
Designer kitchen 65 %
In-ground swimming pool 37 %
Hot tub 35 %
The Second Property - An Escape
For those who own second homes, and even those considering purchasing
second homes, the preferred locales suggest these homebuyers are interested
in rest and relaxation. Of the 35 percent of respondents who own a second
home, 55 percent of them are in recreation areas, including the beach /
oceanfront (32 percent), lake front (11 percent) or in ski resorts /
mountain areas (11 percent). The same is true for those who would consider
buying a second home. Forty-two (42) percent would select beach /
oceanfront locations, with 14 percent opting for ski areas / mountains, and
12 percent on the lake.
"Interestingly, these consumers are not necessarily looking to retire
to these second properties just yet, as 32 percent of those polled do not
plan to retire until they are 65 or older, and 14 percent saying they plan
to retire between the ages of 60 and 64," Gillespie continues. When that
time comes, respondents look forward to traveling domestically (42 percent)
and internationally (46 percent).
Enjoying Leisure Time
While the Federal Reserve has raised interest rates recently, 70
percent indicated that the hikes will have no impact on their planned
luxury purchases. A telling example comes when looking at the high-end
activities the respondents enjoyed in the past 12 months. Sixty-two (62)
percent visited a high-end resort/spa; 43 percent went on an active
vacation such as a ski trip, bike or hiking trip; 28 percent traveled for
more than three weeks internationally, with another 25 percent spending the
same amount of time traveling domestically. Eighteen (18) percent of those
surveyed have flown on a private plane over the last year and 9 percent
went on an extreme vacation or adventure vacation, such as an African
safari.
A Penny Saved Is A Penny Earned
"In reality, the million-dollar homeowner lifestyle is not what you see
in the movies," adds Gillespie. Only 5 percent of those surveyed employ a
personal assistant, 4 percent have a live-in housekeeper and 1 percent have
a driver.
"To me, one of the most interesting findings of our survey is how these
million-dollar homeowners approach investing. When it comes to planning for
retirement, 84 percent described themselves as moderate- to low-risk
investors," Gillespie notes. When asked where the majority of their
retirement holdings are, the responses were:
Item Response
Individual stocks 29 %
Mutual funds 23 %
Real estate 19 %
Mixed portfolio (including real estate) 14 %
Bonds 11 %
Mixed portfolio (excluding real estate) 11 %
401k 7 %
CDs 2 %
Annuities 2 %
IRA 2 %
Pension funds 1 %
The responses align with what the 33 percent of respondents who expect
a tax refund plan to do with their money. Of those, this year, 39 percent
plan to invest their tax refunds in their homes. Twenty-nine (29) percent
plan to save it, and 12 percent plan to invest it in stocks, bonds or
mutual funds.
Gillespie also pointed out that, according to the study, 43 percent of
luxury homeowners made more than $500,000. "We also found that 41 percent
cited their household income as between $200,000 - $500,000. Because of
smart investments, equity in their homes, and, in some cases, inheritances,
luxury properties have become attainable for many Americans."
As to where they shop, along with such expected names as Nordstrom (34
percent), Neiman Marcus (17 percent) and Saks Fifth Avenue (10 percent),
such mall staples as Macy's, Lord & Taylor, Talbots and Pottery Barn also
made the list.
* The survey questioned owners of homes valued at $2 million and up in the
state of California. This was done because, according to the California
Association of Realtors, the median home price in the state is $562,380,
compared with the national median home price of $223,000 (as of April
2006, according to the National Association of Realtors. The Joint
Center for Housing Studies, Harvard University, "Million-Dollar" Homes
and Wealth in the United States study in January 2004 reported from the
2000 Census that 2.3 percent of single-family owner occupied housing
stock worth $1 million or more, representing over 40 percent of all the
units in the state, falls into this "million-dollar" housing category.
All trademarks, company names or logos used in this news release are
the property of their respective owners.
About Coldwell Banker Previews International(R)
The Coldwell Banker Previews International(R) program has been
marketing luxury homes since 1933. This luxury home marketing program has
been exclusive to Coldwell Banker(R) affiliates since 1980. The exclusive
group of certified Previews(R) Sales Associates make up only seven percent
of the more than 126,400 Coldwell Banker sales associates worldwide.
Coldwell Banker became one of the first national residential real estate
brands to launch a second Web site totally dedicated to the luxury real
estate market. The Web site http://www.coldwellbankerpreviews.com features more
than 10,000 luxury properties with an average listing price of over $1.7
Million.
About Coldwell Banker(R)
Since 1906, the Coldwell Banker(R) organization has been a premier
provider of full-service real estate. In 2005, Franchise Times magazine's
prestigious Top 200 issue ranked the Coldwell Banker system number one in
real estate and number nine among all franchisors. The Coldwell Banker
System has more than 4,000 residential and commercial real estate offices
and 126,600 Sales Associates in 29 countries and territories. The Coldwell
Banker System is a leader in the industry in residential real estate, and
in niche markets such as resort, new homes and luxury properties through
its Coldwell Banker Previews International(R) division. It is a pioneer in
consumer services with its Coldwell Banker Concierge(R) Service Program and
award-winning Web site, http://www.coldwellbanker.com. Coldwell Banker Mortgage is
one of the largest telephone/web based lenders in the country and the
Coldwell Banker Commercial(R) network is an industry leader in providing
commercial real estate solutions that serve the needs of tenants,
landlords, sellers and buyers in the leasing, acquisition, disposition and
management of all property types. Coldwell Banker Real Estate Corporation
is a subsidiary of Cendant Corporation (NYSE: CD). Coldwell Banker(R) is a
registered trademark licensed to Coldwell Banker Real Estate Corporation.
Each office is independently owned and operated except for offices owned
and operated by NRT Incorporated.
SOURCE Coldwell Banker
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Related links:
http://www.coldwellbanker.com
http://www.coldwellbankerpreviews.com
CONTACT:
David Siroty, Coldwell Banker,
+1-973-496-7199, David.Siroty@cendant.com; Catherine Sullivan,
Publicis Dialog, +1-212-279-6345,
Catherine.Sullivan@publicis-usa.com
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