As the number of Super Rich expand, so do the research reports attempting to give us more insight into what Ultra High Net Worth households are up to. Among the notable tomes is The Wealth Report at 72 pages, put out by real estate advisor Knight Frank. While naturally this one has a property investment bent, it covers a wide range of topics of interest to the very rich, those that envy them and all the folks who make their living selling goods and services to the plutocrats.
Here are 10 things to know about the Super Rich lifestyle:
- Eighty-one percent of advisors said their clients are worried about tax hikes and 80 percent said they are concerned about increased government scrutiny of their wealth. Yet the biggest concern of UHNWs was within the mansion walls: Eighty-five percent said they were concerned about succession issues in the family business. Only about half of respondents were concerned about happenings in Russia, the Middle East or China.
- One million dollars doesn’t go far in Monaco. It will buy you about 190 square feet of home, not even the size of a tiniest cruise ship cabins. Put another way, at 2,600 square feet the average new American home would cost about $13.7 million.
- Despite President Obama’s taxation rhetoric against the rich, only seven percent of UHNW Americans were considering emigrating. Russia/CIS was tops at 33 percent.
- More folks will be getting Super Rich (net worth exceeding $30 million) in the next decade as Knight Frank projects 34 percent growth. However, its current UHNW population figure of 172,850 individuals trails the Wealth-X estimate of 211,000.
- Looking at the entire wealth food chain there are 17,808,831 mere millionaires out of the nearly 7.3 billion-person world population. It’s worth noting that when Oxfam crows about the one percent taking over the joint, that equates to 73 million people. In other words, over three-quarters of the fabled one percent are worth less than one million dollars.
- If you are looking to get ahead of the pack in terms of future hot spots for the rich, check out Belgrade, Serbia; Panama City, Panama; Addis Ababa, Ethiopia, and Yangon, Myanmar. While none of the aforementioned can even boast a single billionaire in residence, Knight Frank predicts fast growing millionaire and UHNW populations as signs of profit making opportunities.
- Nine of the top 10 private jet routes for NetJets include either the United States or United Kingdom. Moscow to Nice was the exception. Nice to New York showed the fastest growth. Pittsburgh-New York had the fourth highest growth. What’s up in Pittsburgh?
- If you are a tech elite, forget the Harvard Club or the golf club. The Silicon Valley UHNWs are moving up the peninsula into San Francisco, buying up gobs of property and starting their own social and networking clubs such as The Battery, a bricks-and-mortar Facebook of sorts. Entrepreneurs and programmers hang out, network and plot the next Facebook or something even better.
- A diamond may be forever, but it is no longer enough. Naturally colored diamonds are the rage with the Super Rich. They are beautiful. They are rare. And, while the average price has increased 167 percent since 2005, blue diamonds performed the best gaining 360 percent. By the way guys, treat yourself while you’re at it: Classic cars increased in value by 487 percent in the past decade.
- Oh, and since Knight Frank does the report to help promote the sale of expensive real estate to people who have the money to buy it, here is a plug: They expect just over 25 percent of the Super Rich to buy a new home in 2015. If that comes true, there will be just over 43,000 very happy real estate agents, insurance brokers, interior designers and landscape artists this year.