People with money are interested in diversifying it beyond the US stock market in particular, "Peddicord stresses." A vacation or second or third home in a sunny Shangri-La is an increasingly attractive option. It is a difficult asset that works as a lifestyle enhancement and cushions the buyer from any shock that American markets may have.
While most high net worth individuals opt for a second or third residence in the country where they reside, an increasing number of people with net assets of more than $ 30 million are buying houses in other countries, according to the report. International households represent 16% of non-priority households, compared with 11% in 2010.
Mid-market buyers are spending $ 250,000 to $ 500,000 on unique properties, but wealthy people are spending $ 1 million or more in many markets, including the Caribbean and Europe. "We are seeing growing interest in Panama and countries where the US dollar is strong." These include France, Spain and Portugal.
David Forbes, head of consultant Savills, even reveals that security has become an important issue around the world and living in secure locations is increasingly an option.