Why Wealthy Individuals Invest in Real Estate with a Unique Story

When wealthy people purchase real estate, what they are looking for is more than just an "address. It is the "story" that enriches the owner's life.

In this article, INA&Associates, Inc. provides an expert's perspective on why high-net-worth individuals value the story that a property tells, and how that "story" affects the value of the property.

What is the "story" that HNWIs seek in real estate?

For the wealthy, real estate is more than just a place to live or an investment; it is a form of self-expression and a symbol of their lifestyle itself. What exactly is the "story" that they value and what elements does it consist of?

Value that goes beyond mere location and specifications

In the past, real estate value was generally measured in terms of specifications such as distance from train stations, area, and age of the building. In addition to these factors, however, wealthy people place importance on the unique story of the property.

For example, a mansion renovated from a historical building, a designer apartment by a famous architect, or an area where a specific community has been formed.

▼Comparison of conventional standards of value and those sought by wealthy individuals

Real estate as a vessel that reflects one's lifestyle

Wealthy individuals express their lifestyles through the "vessel" of real estate.

For example, they want a gallery space to display their art collection, a cellar for wine lovers, or a spacious living room or terrace to host intimate parties.

The Impact of "Narrative" on Property Value

The "story" of a property has a significant impact not only on its emotional value, but also on its economic asset value.

Rarity and resale value

Properties with a "story" are difficult to replace in the market due to their rarity, and are less susceptible to fluctuations in the economy. As a result, they are more likely to maintain stable asset values over the long term and can be expected to fetch higher prices when sold.

Rather than a uniform condominium, a property with a unique story will retain its value over time without fading away.

Real Estate as Branding

The type of real estate one owns speaks eloquently of one's social status, credibility, and even personal brand image.

For example, the fact that you live in a historic building or own a residence by a prominent architect can be a powerful weapon to positively influence business and social interactions.

Finding a Property with a "Story

So what can you do to find real estate with a "story" that matches your own values?

The Importance of Partnerships with Professionals

Many properties for high-net-worth individuals are closed and not available on the general market. Therefore, it is essential to partner with a reliable real estate agent who has deep knowledge of the industry and a broad network.

Our mission at INA&Associates is to gain a deep understanding of each client's lifestyle and values, and to propose properties with the best "story" for them.

The Art of Information Gathering and Site Visits

It is important to visit the property and feel the property with all five senses, rather than making judgments based solely on the Internet or other materials.

The atmosphere of the surrounding environment, the appearance of the building, the light streaming into the rooms, the view from the windows, and other information that can only be obtained on site are essential to understanding the "story" of the property. Also, researching the history and culture of the area in advance will provide deeper insight.

Conclusion

This article has explained the importance of the "story" that wealthy people look for in real estate and its impact on property values. For them, purchasing real estate is not just an act of acquiring physical space, but an investment in a "story" that will enrich their own lives.

Organizing points

• Shift in value criteria: Affluent people value not only the specifications but also the unique "story" of the property.
• Reflection of lifestyle: Real estate serves as a "vessel" for expressing hobbies and values.
• Impact on asset value: "Stories" create scarcity and contribute to the maintenance and improvement of asset value over the long term.
• Use of experts: Access to closed information and finding the right property, together with trusted partners, is the key to success.

The future of real estate selection will shift from "where to live" to "what kind of story to live with. We hope this article will help you in your real estate selection process.

Please let INA&Associates Inc. consult with you about real estate and help you find the right property for your "story". We will work closely with each and every one of our clients to provide you with the best possible solution.

Frequently asked questions (Q&A)

Q1:Are properties with "stories" more expensive than regular properties?

A1:It is not generally true. Certainly, properties that are the work of famous architects or have historical value tend to be more expensive, but it is important to consider not only the price, but also whether the unique value of the property matches your own sense of value. In many cases, considering the long-term asset value, it can be a rather inexpensive investment.

Q2:Are there properties with "stories" in rural areas?

A2:Yes, there are. Not only in central Tokyo, but also in rural areas with rich natural environments and unique cultures, there are many properties with fascinating "stories" to tell. INA&Associates can introduce properties that meet your needs through our nationwide network.

Q3:Is real estate with a "story" effective as an inheritance tax measure?

A3:Yes, it is an effective option. Real estate tends to have a lower assessed value for inheritance tax purposes than cash or securities, but scarce properties with a "story" may be advantageous for passing on to the next generation while preventing a diminishing value of the asset, since their value is less likely to decline. However, since the taxation system is complex, we recommend that you consult with a specialist.