Understanding the Unique Property Management Needs of the Ultra-Rich – Xerendipity Management Property Management Concierge Services
Xerendipity Property Management manager share top value-add strategies and thoughts to meet the unique real estate management needs of the wealthy clients.
With an economy winking at a recession knocking at the door and central banks continuing to threaten interest rate hikes, many Ultra-High-Net-Worth Properties Owners are turning to Xerendipity Management in search of ideas to safeguard the value of their properties.
Strategies for meet the HNW and UHNW clients needs
Over the years, Xerendipity Management has earned the nickname "when NO is not an option”.
I have been asked more than once what is a term to describe our work in Property Management, well, to use one word, the most apt one is: 'facilitators'.
That's right, Xerendipity Management is a ‘Facilitator’ but in the broadest and certainly Non-Standard sense of the term.
Because our job is not just to manage properties and related day-to-day activities on behalf of our clients.
I’m talking about 'Standard' activities such as property management, administration, budgeting, staff management, etc….
But since they are very high profile clients, they own several properties, private jets, fleets of luxury vehicles such as Rolls Royce, Ferrari, Bentley, collections of artworks worth millions...
And, of course, all this brings with it a series of daily challenges and problems, big problems, to be solved quietly and in 'Zero Time’… and NO ISN’T AN OPTION!
This is where Xerendipity Property Management comes in.
As a company specialising in Property Management and Luxury Concierge Services, we manage all this so that our HNW and UHNW clients can focus on their families and their businesses.
We all have certain qualities to 'redeem', ours is to SOLVE PROBLEMS as, for our clients... NO ISN'T AN OPTION.
Top considerations on HNW and UHNW clients needs
A key characteristic of Ultra-High-Net-Worth clients (UHNW) is that they are already wealthy.
Unlike other investors who may aim to increase wealth, these are investors who are primarily looking to preserve the wealth they have already acquired.
We know very well, our HNW and UHNW clients have taken a considerable amount of risk to get to where they are.
That is why Xerendipity Management focuses on wealth preservation while minimising risk, which is the strategy most likely to achieve results that are in line with our clients' expectations.
Another incredibly important factor is Tax Efficiency.
The need to focus on wealth preservation and Tax Efficiency is a 'MUST' for Xerendipity's strategies.
In our view, this comes down to three important variables: liquidity, cash flow and taxation.
We think these are a very significant and important asset classes for UHNW clients.
Even at 30 percent of their portfolio, that’s a relatively reasonable weighting in certain cases for this asset classes.
For this reason, Real Estate tends to be particularly popular with Ultra Wealthy clients.
These are often major Real Estate investors, developers, and owners in their own right.
A common misconception about the Real Estate market, however, is that everything that happens with houses and office buildings also occurs with luxury villas and private residences.
But these are very different asset classes, with luxury villas in particular benefiting from record short-term rents as their value continues to rise.
In our experience, luxury villas provide an attractive buffer against market volatility and offer wealthy clients the capital protection they need.
Private Real Estate can offer protection against the emotional forces of the public market, with lower volatility, low correlation with other asset classes, better returns with less downside risk, and constancy of returns.
They are also an excellent hedge against inflation.
Xerendipity Management always looking ahead
As inflation cools and interest rates approach highs, our Ultra Wealthy clients look for new opportunities as markets adjust.
In terms of our experience in the Luxury Real Estate market, this is an opportunity to take advantage of higher returns and mis-pricing in some sectors, while still maintaining a balanced approach.
For Xerendipity Management's Ultra Wealthy clients, the combined value of multiple home loans can reach hundreds of millions, with International Private Banks usually lending the money.
International Private Banks often lend more quickly than a traditional bank would, helping customers close a deal.
Xerendipity looks for Luxury Real Estate properties for our clients, and as soon as we find something they like, they buy it quickly, whether it is in Italy, London, or the south of France.
At Xerendipity Management we have experienced over the years that Business Banks offering home financing, or organising it, look for potential clients at trade shows, where very wealthy people buy Super-Yachts or Private Jets, or at events where they enjoy their pastimes.
We often attend the European Business Aviation Convention and Exhibition in Geneva and classic luxury car and supercar events, such as the UK's Salon Privé at Blenheim Palace and the Goodwood Revival, are popular meeting grounds for us, as is VIP access to the Paddock Club at Formula 1 races.
Often we organise private meetings with private banks hosting events at the World Economic Forum in Davos, because they attract current and potential clients with famous speakers.
On these occasions, the financiers make sure to keep the consultants working with the Ultra-Wealthy people updated on what they can offer.
On these events it works very well, in fact it is the only way for us at Xerendipity to be recognised as the right company for HNW and UHNW clients...
The word of mouth: One billionaire introduces us to another.
Mortgages for the Ultra-Wealthy people usually cost banks more than those for ordinary customers, not least because their incomes rarely all come from typical sources, such as a salary, and therefore take time and effort to analyse.
But if lucrative activities are envisaged in the future, the loan can often be an open door.
So, that why you must consider partnering with a Xerendipity Property Management.
Our expertise and comprehensive management solutions ensure that your property is well-maintained, legally compliant, financially sound, and strategically positioned in the market.
Preserve and enhance the value of your property… Value Your Time.
Francesco De Biase
Chairman BoD & C.E.O.
©Xerendipity Corporation Ltd.
©Xerendipity Corporation Ltd.