Consumer Mindset in Luxury Buying
#2 Discretionary Spending Power Could be Tested Affluent consumers at all stages and mindsets are aware that their ability to spend money could be tested, and soon. This test comes in the combination of increased taxes, slower economic growth (affecting income and capital gains), and currency devaluation (as higher interest rates and lower purchasing power of money). Percent Select: Significant Concern in the Coming Year | IN THE MARKET TO BUY NEXT 3 YEARS g LUXURY BUYERS
g NON-LUXURY BUYERS
75% 77%
34% 39%
25% 33%
25% 36%
25% 27%
26% 28%
ABILITY TO SPEND (NET)
TAX INCREASE
RECESSION
PURCHASE POWER IN DECLINE
STOCK MARKET GROWTH SLOWS
INTEREST RATES
CONCERNS BY LUXURY PURCHASE MINDSET g INVESTMENT PROPERTY
g PERSONAL USE
30% 22% 31% 24% STOCK MARKET GROWTH SLOWS
INTEREST RATES RISE
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Buyer Insight: The primary issue facing governments, consumers, and the luxury real estate market — is the continued ability for private individuals to spend their wealth on the things they want. Luxury buyers of all mindsets share in this concern, especially those buying investment properties.
LUXURY SELLERS R AC E TO MEET DEM AND | 13
