The Rise of the Super Rich

By
Real Estate Agent with Elite Pacific Properties Maui R(S)54097

The Rise of the Super Rich.

  

I was watching a special on TV about the rise of the super rich.  It is a new bread of young wealthy people.  Who are these people that slip under the radar.  They are Hedge Fund Traders.  Real Estate investors and players in the Hi-Tech world.  What is different about this new generation of wealth is that they spend big.  This group is the $30Million and up.  They interviewed a woman that started her own internet business and her worth was $10 million.  She was sharing that she did not consider her self rich.  She was saving that she did not have the luxury of living the life style of the rich and famous.

Back to the $30Million and over group.  Buying private jets went up 30% from 2001 even with fuel prices what they are.  They vacation big to and there is actually a lack of vacation destination to care for this growing group.  It is not uncommon to purchase $26 million dollar homes then in two years have the need to find something bigger and grander.  Are there any real estate agents out there that can take care of these people?

On this program they were interviewing stores clerks and owners on Fifth Ave in New York City.  According to sale people in these fashion hot spots there is no recession.  Women are buying name brand designer bags at $18,000 a bag.  How about $2,500 for a pair of shoes, pretty crazy.  So the good news is there is still money out there and the Super Rich are still out there buying 2nd and 3rd homes and taking expensive vacation in a lot of our back yards.  As for me I am going back to work and to my humble home sweet home.  I will have my eye open for that perfect $25 million beachfront home, how sweet it is. www.nickensmaui.com or www.nickensmaui.com/wailea_condos.htm

  

Aloha,

  

Steven Nickels R(S) GRI

The Wailea Group LLC.

Wailea Maui, Hawaii 96753

www.nickensmaui.com

Email: nickens@maui.net

  

  

Posted by

 Maui Realtor

Steven C. Nickens RS-54097  GRI ABR

Elite Pacific Properties

34 Wailea Gateway, suite A-204

Wailea, Maui, Hi 96753

www.nickensmaui.com

Cell: 808-280-2208

Email:nickensmaui@gmail.com

24 Years Selling Maui Real Estate

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Rainer
69,000
Sandra Carlisle (Ayers)
Berkshire Hathaway California Properties - Newport Beach, CA
Real Estate Marketing & Sales

There hasn't been much of a slowdown in our 10+ million market out here. 

Aug 04, 2008 04:54 PM #1
Ambassador
2,009,902
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

I agree with Sandra that those with a lot of money don't seem to be experiencing much pain.

Aug 04, 2008 04:58 PM #2
Rainmaker
503,956
Steven Nickens
Elite Pacific Properties Maui - Wailea, HI
R(S)GRI ABR, Maui Real Estate Hawaii

I have heard the same in San Francisco and Seattle to.

Steve

Aug 04, 2008 04:58 PM #3
Rainmaker
56,681
Kevin Pierce
Cascade Builder Services - Tacoma, WA
New Construction Warranty Management

I'm amazed that someone can sustain a real estate career on Maui.  How many transactions occur per month?  I've been there a few times and it doesn't seem like there's a significant amount of residential around.  I'm sure I'm just ignorant on this matter but I'm very curious.

Aug 04, 2008 04:59 PM #4
Rainmaker
56,681
Kevin Pierce
Cascade Builder Services - Tacoma, WA
New Construction Warranty Management
Rainmaker
503,956
Steven Nickens
Elite Pacific Properties Maui - Wailea, HI
R(S)GRI ABR, Maui Real Estate Hawaii

Hi Kevin,

Most of the homes are in the jungle.  You can get a tree house for first time home buyers pretty cheap. Just kidding.  Actually we have a pretty diversified market between resort and residential.

Steve

Aug 04, 2008 05:05 PM #6
Rainmaker
262,105
Paula Swayne
Dunnigan, Realtors, Sacramento (916) 425-9715 - Sacramento, CA
Realtor-Land Park, East Sac & Curtis Park -Dunniga

Okay...what I want to know is where are these buyers...I want one! Maybe Sacramento isn't the destination that they are looking for...oh well!

Aug 04, 2008 05:05 PM #7
Rainer
57,817
Lori Franks
Real Estate Consultant - Brookings, OR
Brookings, Oregon

Steven- Sounds like a John Grisham novel I'm reading right now...King of Torts!

Aug 04, 2008 05:18 PM #8
Rainer
43,037
Thomas Hargreaves
TriStar Financial Services - Eugene, OR

I just found a way to get contact information for the 400 Billionaires in the U.S.  I will let you know how it turns out..

Aug 04, 2008 05:26 PM #9
Rainmaker
254,432
Robert Machado
HomePointe Property Management, CRMC - Sacramento, CA
CPM MPM - Property Manager and Property Management

There is no pain at the pump if you fill your tank with pocket change.  More power to them for making it big.

Aug 04, 2008 05:30 PM #10
Rainer
10,724
PJ S
Home Inspection Specialist - Los Angeles, CA

yeah.......money...alot of money.....is good! =)

Aug 04, 2008 05:32 PM #11
Rainer
33,124
John Ford
Security National Properties - Eureka, CA

There hasn't been muvh of a sloowdown here either. You can still get an ocean view property for less than $900k!

Aug 04, 2008 05:43 PM #12
Rainmaker
503,956
Steven Nickens
Elite Pacific Properties Maui - Wailea, HI
R(S)GRI ABR, Maui Real Estate Hawaii

So John,

Where is your real estate market at.  It seems there are pockets in the market that are doing really well. In Hawaii with losing Aloha and ATA airlines it left a void and ticket prices went up. The good news is there are starting to be a few deals showing up. I just booked a ticket for my daughter from L.A. to Maui for $550 not bad. Our high end market is the stronger market in the islands.  People with money are still moving on with there lives traveling and buying. It keeps the ecomony moving.

Aug 05, 2008 06:55 AM #13
Rainmaker
756,680
Kimo Stowell
HI Pro Realty LLC RB-21531 - Honolulu, HI
REALTOR Associate® RS-76763 - Honolulu Hawai'i

Aloha Steven,

The super rich like to go and do things where other super rich folks hangout. The old guard frequented Aspen, Newport, Palm Beach, Bermuda, and the French Riviera. The new money want properties in Telluride, The Hamptons, New York, Kona, and the Italian Riviera.

I've seen what 40 million will buy you on Kona, but it's not the home, it's who owns the jet parked next to yours at Kona Airport. If you want this caliber of client you have to be in thier social network you have to know names and the bigger the better. Getting on the guest list to exclusive parties and events is one way of meeting the right people.

These new super rich, in general, aren't as class conscience as their predecessors so for the most part they are approachable, affable and interesting people with expensive hobbies.

Peace,

Aug 05, 2008 08:15 AM #14
Rainer
478,183
Not a real person
San Diego, CA

Several years ago I used to believe that one home inspection fit the needs of all people in all circumstances, and they could either buy it at my price or go elsewhere. Then one day when I followed up with a Client and asked her if she had any comments, she said that she was extremely disappointed in my home inspection report. Believing that a complaint is a gift, I engaged her in conversation to find out why. It turns out that she was a property investor/renovater/flipper and didn't care if the old wooden single-hung windows were cracked and damaged and didn't open. She didn't care that none of the kitchen appliances didn't work. She didn't care about the damaged vinyl flooring that probably contained asbestos, not to mention the popcorn ceiling. She was going to G&R.

Since I have spent a good part of my business career renovating properties, I understood exactly where she was coming from, so I developed a BASIC inspection to go with my STANDARD inspection. In realizing that such a niche market existed, I decided to color outside of the lines and see if I could identify other niche markets. That's when I remembered the super rich, the overly wealthy, and the uber wealthy.

One of my consultant clients many years ago was worth about half a billion dollars. I had the opportunity to visit with him at an upscale hotel outside of Salt Lake City. I've always been a Holiday Inn guy, functional without being excessive. I asked him why he stayed at such a place when Holiday Inn was $2,000 a night less expensive and was right down the road. His response was, "Because I can. I don't like carrying luggage and this place carries it for me, from the car to the room and back. I don't like parking my car and this place will park my car for me and retrieve it when I need it. I don't like sitting in restaurants waiting for someone to wait on me. This place calls me to inquire what I want for breakfast, lunch, and supper."

Thinking about that made me realize that with Rancho Santa Fe and other high-priced zip codes here, and with many sports, movie, television, and recording stars having homes or second homes here, there probably was a niche market to provide extraordinary customer service to them when they bought a home. I was right.

They are definitely approachable as long as one steps up to their level.

Aug 05, 2008 06:41 PM #15
Rainmaker
503,956
Steven Nickens
Elite Pacific Properties Maui - Wailea, HI
R(S)GRI ABR, Maui Real Estate Hawaii

Hi Kimo,

You sound like you speak from experience.  I do agree with you and mixing it up with these folks is key. So Kimo I do detect a little bit of a jet setter your self.  Travels to China and who knows where else, am I on the money. We do have our fair share of private jets on Maui. We just had a visiting Sheik at one our our Wailea Hotels

Aug 06, 2008 04:49 AM #16
Rainmaker
503,956
Steven Nickens
Elite Pacific Properties Maui - Wailea, HI
R(S)GRI ABR, Maui Real Estate Hawaii

Aloha Ray,

Sounds like you are mixing it up in the right neighborhoods.

Steve

Aug 06, 2008 04:50 AM #17
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