Bigger is Better
If you were to talk to one of the today’s self-made billionaires regarding what they’d like to see in a home, one word would probably sum it up – big. Why? One thought is that big, expensive houses send a message to the outside world regarding just how successful the occupant is. It’s often referred to as a Trophy Home.
Self-made millionaires and billionaires in particular are notorious for building or buying over-the-top homes. “It makes them more willing to make a statement,” says Rick Goodwin, publisher of Unique Homes magazine. “Old money tends not to like to show off as much.” Trophy homes are usually “very large, very interesting, and not necessarily resellable”.
While most of the housing market struggles, the very high end is thriving. The Institute for Luxury Home Marketing estimates that home sales at the $5 million-plus price range rose 11% in 2006, compared to a 8.4% decline in overall housing market sales. Between 1999 and 2005, sales of homes for more than $1 million skyrocketed over 500%. Today, there are seven homes on the market priced at $100 million or more. In 2005, there was just one.
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