by Scott Murphy
Many top executives at large investment banking firms will be depositing some jumbo bonuses by the end of this month.
Despite an overall bonus decrease of 10% due to months of multibillion-dollar bank write-downs and a spreading credit crisis, many will be pocketing some still-sizeable sums.
Depending on which firm they work for and the position held, bonuses can range anywhere from up to $2 million to $50 million.
Real estate prices this year have dropped–and where else should these high earners invest their bonuses?
According to Forbes, some of these bonus recipients may also be rookies– as well as first time homebuyers–looking in the $5 to 6 million range. For top executives, the bonuses will be substantially more and potentially leading them towards the $20,000,000 home range.
Some rich real estate markets such as Manhatten, San Diego, the Silicon Valley area, Los Angeles and other top markets, just might see an increase of sales come the end of the year. Interest is already brewing in a number of these luxury markets.
In the coastal San Diego area, for example, Rancho Santa Fe, Del Mar, La Jolla, Carmel Valley, Coronado, Solana Beach, Cardiff, Encinitas, Carlbad and downtown San Diego (all coastal) offer some of the finest luxury homes in San Diego County. Inventory levels are also attractive for these flush buyers, which makes the home shopping experience even more fun.
At the other end of the country, many bonus-rich buyers will be shopping properties in Manhattan– including townhomes overlooking Central Park, which have asking prices at $50,000,000 or more. These executives might not be able to pay cash for one of these properties, but can rest assured that large down paymens will be coming from a secure source.
Of course the purchase of one of these homes will depend on the size of the bonus. But for some just starting out in the business, a nice condo in a great location would work very nicely.
Here’s wishing fat bonuses to all!
