Higher-end property segment is more recession-resistant

Higher-end property segment is more recession-resistant

While no one is entirely recession-proof, it is generally accepted that those with more disposable income are, by definition, less likely to suffer a significant change of lifestyle due to the cyclical economic oscillations that can affect the rest of us so profoundly

Properly defined, disposable income is exactly that: income you can afford to lose without it affecting your lifestyle.

Where the poor are always involved in a battle for survival, and the moderately affluent fluctuate between opulence and belt-tightening according to economic up- and down swings, there the wealthy have a more consistent ability to consume at a high level. Many might in fact prefer to invest in bad times, knowing they can ride the storm and get good value for money. The latter really reflects the saying that money makes money, but just as Porsche suffers less from economic cycles than its mother company Volkswagen, so specialist agents in luxury real estate are involved in a more recession-resistant segment than their colleagues in the mass market. It all means that for many this is an excellent time to buy property.

Read the “The Times” full featured story: “Luxury keeps its cool”

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New post on at Friday, 28 September, 2007, 1:00 am and is archived in International News, Luxury. Subscribe to answers with RSS 2.0 feed. You can post a comment, or make a trackback from your web.