The New York Times reports that US millionaire home owners are having a hard time selling their homes and are turning to wealthy tenants to save the day.
Jack Cohen, a developer in suburban New York, is having a difficulty selling a house that he built and put on the market for $3.75 million. Sheldon Dubrow, who is also a builder, is finding selling his Millionaire home in Brookline Massachusetts a struggle and has not had any serious interest in his $1.99 million home for a number of months.
Both millionaire home owners have found the answer,this is to rent their luxury homes to the increasing number of wealthy tenants. Jack Cohen leased his home to the New York Knicks basketball player for $17,000 a month. Sheldon Dubrow is hoping that he can rent it his home for $8,500 a month.
So who else rents a home for $8000 plus per month? Executives with huge housing allowances, millionaire home owners who are who are having renovations on their homes , celebrities with support crews of film directors, producers are to name but a few.
Jan Eric Horn, the founder and executive director of the architectural division of Coldwell Banker in Beverly Hills, California. “There are so many people brought in by the entertainment industry for 10, 11, 12 months.”
Mr. Horn said he had noticed lately that “while the sales market has slowed the demand for leases has gotten higher,” this sometimes creates bidding wars. A house in the west side of Los Angeles that was recently listed for rent at $30,000 a month is now being leased for $50,000, because several people were interested in it. The house which is just less than 7,000 square feet has a pool and horse stables went to a businessman who paid the entire one-year lease up front.
The sale of a home which is over the million pound mark is substantially different from selling other types of real estate, with genuine luxury home buyers proving a rare breed within today's market. Agents marketing luxury homes need to consider the overseas property buyer in order to broaden the pool of potential buyers.
In response to these challenges, Nicholas Marr, CEO of Marr International, the company behind overseas property web site Homesgofast.com, explains that many millionaire home sellers are turning to the internet as a solution to the problems they face.
Mr Marr points out that his company has seen a 55 per cent increase in homes being promoted over the million pound mark and also explains that the higher the price tag, the more likely it is that your buyer will come from overseas.