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Nine Expensive Fads That Even the Rich Can't Afford Anymore

'17.05.2024'

ForumDaily New York

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You might think that truly rich people don't think about their spending, but this is far from true. Like everyone else, they make purchasing decisions based on a combination of factors. What things have now become so expensive that even the rich have stopped buying them, he says Yahoo.

What rich people want, what they need, and what they consider valuable or worthwhile are all important considerations when spending money.

Often it comes down to increasing costs and the desire to be conscious of your expenses. In some cases, people with the means may still decide against a particular purchase for more complex, often ethical or other personal reasons. Next, we will tell you what luxury things even the rich don’t want to spend money on.

Ultra-luxury or collector cars

“Car values ​​overall are up 30% compared to pre-COVID-19, and some luxury vehicles have surpassed that,” said Melanie Musson, financial expert at Clearsurance.com. “But now they depreciate quite quickly, so rich people view luxury cars as a bad investment and instead prefer reliable options.”

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Many luxury cars cost between $100 and $000, not including gas, insurance and other things. In addition, difficulties may arise with their maintenance.

Collector cars also become extremely expensive over the years. Not to mention that people's tastes have changed and the number of wealthy collectors is decreasing.

“My experience has been that collector cars, while not very expensive to begin with ($1 million to $20 million for the rarest models), come with high maintenance, storage and restoration costs,” said Misty Spittler, a licensed professional at Insurance Claim Academy. . – The market for such goods is extremely niche. This creates an additional level of risk due to potential difficulties in liquidation.”

Megamansions

Home prices are up nearly 2021% in 18. But the prices of the mega-mansions you see tucked away in quiet, outlying areas have risen even more. The prices for these properties and the cost of maintaining them have skyrocketed.


Everything from the cost of renovations to insurance and property taxes have increased in price over the years, so the wealthy are more cautious about such purchases.

Some wealthy individuals will, among other things, avoid buying luxury properties in ultra-premium markets such as London or New York.

“While home ownership in these locations is highly desirable, the huge ongoing costs, including taxes, maintenance, and the current stagnation of the market with declining rental yields are putting off even the rich,” Spittler said. “Real estate in these areas can range from $10 million to $100 million.”

Private Islands

In the old days, it seemed like every superstar and wealthy person had their own private island. But now that even small private islands cost millions of dollars, this is becoming less common.

“While this may seem like a luxury purchase, the maintenance costs alone run into the millions per year depending on the location and size of the island,” stated Scott Friedson, CEO of Insurance Claim Recovery Support. – There are problems with logistics. Everything from waste management to infrastructure needs to be built from scratch, which often results in inflated initial budgets.”

Superyachts

Like private islands, superyachts are a very expensive purchase. Those who have funds tend not to spend them on such acquisitions.

“In addition to the initial price, which ranges from $10 million to more than $300 million, annual maintenance, including crew salaries, mooring costs and repairs, can be about 10% of the original cost of the yacht,” Friedson explained. “This doesn’t even take into account fuel and the complexities associated with international maritime law.”

Procedures to increase life expectancy

Some of those longevity treatments that claim to make you look young and healthy are simply not worth the exorbitant cost.

“Controversial anti-aging clinics promise to extend life at great expense,” commented Alex Kellzy, financial accounting specialist at IRS Extension Online. “Some treatments cost more than $1 million a year, such as stem cell therapy.”

Private Jets

If you think that every super-rich person flies around the world on a private jet, that's not true. Many of them spend their money much more economically.

“Owning a private jet, although a symbol of wealth, involves expenses that go beyond a simple purchase. The cost of the aircraft is from $3 to more than $90 million,” Fridson said. – Operating costs include fuel, crew training, maintenance and hangar fees. They easily number in the hundreds of thousands per year.”

Education at Ivy League universities

There will always be families who dream of their child attending one of the eight Ivy League universities or a similar prestigious educational institution. But for many, the cost of training is unreasonably high.

“Getting into elite universities like Harvard or Stanford is prohibitively expensive, even for upper-class families,” Kellsey admitted. “The total cost of obtaining a bachelor's degree at the most expensive universities sometimes exceeds $300.”

Works of art

Of course, all people are different and have their own, sometimes expensive, tastes. But many rich people have stopped buying luxury works of art, which sell for millions of dollars at auction.

“Works often cost more than $50 million,” Spittler argued. – Despite its prestige, the volatility of the art market often makes it a less attractive option. Fluctuations can be significant and unpredictable, resulting in potentially large losses.”

Journey into space

This new product was not very cheap from the very beginning. Only a select few can afford space travel.

“Companies like Axiom Space offer expensive travel experiences that are only available to a select few billionaires,” Kellzey said. “Axiom is developing a recreational spacewalk experience that costs at least $50 million per person for the already exorbitant cost of a ticket to the International Space Station.”

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