This San Diego article discusses buyers of luxury homes and says 96 percent of multimillion-dollar home buyers are self-made millionaires with new money.
Luxury home buyers typically put a 20 percent to 30 percent down payment on a million-dollar-plus home, and 25 percent are putting down 30 percent to 50 percent, according to the study.
” To put it in perspective, some of these buyers are putting down between $400,000 and $600,000 cash on a $2 million property,” said Hoffman. ” Clearly these home buyers have worked hard to earn their money and are willing to spend it to live well.”
He said home buyers are putting more of their income into houses as an investment.
” It is not like the stock market, which rises and falls. Where one day you can be very well off and the next day you can have nothing.
” When you are buying a house and using it as your primary residence, it has utility value. So even if it doesn’t go up in value, it certainly pays you handsomely in tax advantages and you have a roof over your head if it rains,” he said.