Let's face it, to buy a second or third home on Maui of more than $1-2 million probably requires a net worth approaching $10 million or an income level that over time gets the buyer to that level. So the more we know about that universe, the better we can be as Realtors serving owners of Maui real estate. In today's Wall Street Journal, an article discusses recent IRS filings and what they show us. Here are some key findings and their likely impact on Maui real estate:

 About 47,000 people had a net worth of $20 million or more in 2004, the latest available year, according to new estimates by the Internal Revenue Service. While that was up only slightly from 46,000 in 2001, it was up 62% from 29,000 in 1998. The IRS also reported increases in the number of people with a net worth between $10 million and $20 million: 79,000 people qualified for this group in 2004, up from 77,000 in 2001 and 51,000 in 1998..The total net worth of the 47,000 people in the $20 million-or-more category totaled $2.591 trillion in 2004. That was down from $2.756 trillion held by the top group in 2001 but up sharply from the approximately $1.5 trillion held by those in the top group in 1998. About 231,000 people had a net worth between $5 million and $10 million in 2004. That was down slightly from 243,000 in 2001.

Where do most of these people create their wealth?

Of the total income for the $20 million or more group, the biggest single asset category by far was publicly traded stock ($719.28 billion). In second place was closely held stock.

What this means is that the potential buyers of upper end Maui real estate are sophisticated about value and understand a disciplined approach to investing. It is the kind of buyer who gravitates to the Leading Edge Marketing System.