9 Things That Are So Expensive Now Even the Rich Stopped Buying Them
You might think that truly wealthy people have no qualms when it comes to spending money, but that’s not necessarily true. Like anyone else, rich people make their buying decisions based on a combination of factors. What they want, what they need and what they view as being valuable or worth their time — these are all important considerations when spending money.
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Oftentimes, it does come down to a simple matter or rising costs and the desire to be conscious about their spending. In some cases, people with the means might still say no to a certain purchase because of more complex — often ethical or other personal — reasons.
In any case, if you’ve ever wondered what types of things even the rich aren’t buying as much as they used to, or at all, here are some of the big ones.
Ultra-Luxury or Collectible Cars
“The cost of cars, in general, has increased by 30% since before COVID-19, and some luxury cars exceed that increase,” said Melanie Musson, a finance expert with Clearsurance.com. “But they’re depreciating as fast as they ever have. So, wealthy people see luxury cars as a poor investment and stick to solid, reputable options instead.”
Many luxury vehicles easily cost $100,000 to $300,000, not accounting for maintenance, gas, insurance and the like. And while the price tag itself might not be enough to sway those with money from making the purchase, the hassle of maintaining them might be.
Collectible vehicles have also become extremely expensive over the years. Not to mention, people’s tastes have changed and the number of wealthy collectors is diminishing.
“My experience has shown that collectible cars, though less costly initially (ranging from $1 million to $20 million for the rarest models), entail high maintenance, storage, and restoration costs,” said Misty Spittler, a licensed public insurance adjuster and policyholder advocate consultant who regularly works with wealthy clients at Insurance Claim Academy. “The market for such items is extremely niche, adding a layer of risk due to potential difficulties in liquidation.”
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Mega-Mansions
Housing prices rose by nearly 18% in 2021, but that’s not necessarily accounting for those mega-mansions you see tucked away into quiet, out-of-the-way neighborhoods. These properties — and the cost of maintaining them — have also skyrocketed.
Everything from the cost of renovations to insurance to property taxes has risen in cost over the years, so it’s something the rich are being more cautious about.
Some rich people will also avoid purchasing luxury real estate in ultra-prime markets like London or New York City.
“Although owning property in these locations is highly desirable, the immense ongoing costs including taxes, maintenance, and the current market stagnation with declining rental yields deter even the well-off,” Spittler said. “Properties in these areas can range from $10 million to $100 million.”
Private Islands
Once upon a time, it seemed like every superstar or high-net-worth individual was buying a private island. But now, with even small private islands costing millions of dollars, this is becoming less common.
“While it might seem like the ultimate luxury purchase, the upkeep alone can run into millions annually, depending on the island’s location and size,” said Scott Friedson, a public adjuster and CEO of Insurance Claim Recovery Support. “There are also logistical issues — everything from waste management to infrastructure needs to be created from scratch, often leading to a ballooning of initial budgets.”
Super Yachts
Like private islands, super yachts are also such a high-cost purchase that even those with the means tend to avoid buying them.
“Apart from the initial price, which can range from $10 million to over $300 million, the annual maintenance — which includes crew salaries, docking fees, and repairs — can be about 10% of the yacht’s original cost,” Friedson said. “This does not even consider the fuel and the complexities involved in international maritime laws.”
Longevity Treatments
While there might still be some appeal, some of those longevity treatments that claim to keep you looking young and healthy far beyond what’s natural are just not worth the cost.
“Controversial anti-aging clinics promise life extensions for prices in the millions,” said Alex Kellzi, CPA at IRS Extension Online. “Some facilities can be booked for over $1 million per year for intensive experimental treatments like stem cell therapies.”
Private Jets
If you think every ultra-wealthy person is flying around the world on private jets, think again. Many of them are much more economical with their money than that.
“Owning a private jet, while a symbol of ultimate wealth, involves expenses that go beyond just purchasing the aircraft — which itself can cost between $3 million to over $90 million,” Friedson said. “Operating costs include fuel, crew training, maintenance, and hangar fees, easily running into hundreds of thousands annually.”
Ivy League Education
There are always going to be those families where the dream is to get into an Ivy League or similarly prestigious school. But for many, the high cost is hard to justify.
“Getting into elite universities like Harvard or Stanford is exorbitantly expensive even for upper-class families,” Kellzi said. “Total costs can exceed $300,000 for an undergraduate degree at the priciest schools.”
High-End Artwork
Of course, everyone is different and has their own — sometimes expensive — tastes. But many wealthy people have stopped buying blue-chip art pieces that go for millions of dollars at the auction.
“Pieces can fetch upwards of $50 million,” Spittler said. “Despite the prestige, the art market’s volatility often makes it a less attractive option, as fluctuations can be substantial and unpredictable, leading to potential major losses.”
Space Travel
This is a newer one that’s been expensive since the beginning, but only a select few can afford space travel.
“Companies like Axiom Space offer expensive voyages that are inaccessible to all but select billionaires,” Kellzi said. “Axiom is developing an amateur spacewalk experience that could run $50 million or more per person, on top of the already exorbitant ticket price for a trip to the International Space Station.”
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This article originally appeared on GOBankingRates.com: 9 Things That Are So Expensive Now Even the Rich Stopped Buying Them
