You might think that truly wealthy people have no qualms about spending money, but that's not necessarily the case. Like everyone else, wealthy people make purchasing decisions based on a combination of factors: what they want, what they need, what they perceive as valuable, what they perceive as worth their time – these are all important things to consider when spending money.
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Often it comes down to a simple issue – rising costs and a desire to be conscious of spending. In some cases, more complex reasons (often ethical or other personal) may lead those with the means to refuse to make certain purchases.
Either way, if you've ever wondered what items even the wealthy no longer buy as much as they used to, or don't buy at all, here are some of the biggest ones.
Ultra-luxury or collector's cars
“Auto prices have generally risen 30% since pre-COVID, with some luxury vehicles even surpassing that rate of increase,” says Melanie Masson, a financial expert at Clearsurance.com. “But cars are depreciating in value faster than ever before, which is why the wealthy aren't viewing luxury cars as an investment and are instead sticking to solid, well-respected options.”
Many luxury cars can easily cost anywhere from $100,000 to $300,000, not including maintenance, gas, insurance, etc. While the price itself may not be enough to dissuade those with money from buying one, the maintenance hassle may be.
Collector cars are also becoming increasingly expensive over the years, not to mention that tastes are changing and the number of wealthy collectors is decreasing.
“In my experience, collectible cars are inexpensive to start with ($1 million to $20 million for the rarest models) but are expensive to maintain, store and restore,” says Misty Spitler, a certified insurance adjuster and policyholder advocacy consultant who regularly works with wealthy clients at the Insurance Claims Academy. “The market for these items is extremely niche, which adds an extra layer of risk as they can be difficult to sell.”
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Mega Mansion
Home prices have risen nearly 18% in 2021, but that doesn't necessarily take into account the mega-mansions tucked away on quiet neighborhoods. Those properties — and the costs of maintaining them — have skyrocketed.
Everything from renovation costs to insurance to property taxes has risen in price over the years, making the wealthy more cautious.
Some wealthy people may shy away from buying luxury property in top markets like London or New York.
“Owning property in these locations is highly desirable, but the significant ongoing costs of taxes and maintenance, as well as the current sluggish market due to declining rental yields, are deterring even the wealthiest,” Spitler says. “Properties in these areas can range from $10 million to $100 million.”
Private Island
It used to seem like every superstar and wealthy person bought a private island, but now that even small private islands can cost millions of dollars, this is becoming less common.
“While it may seem like the ultimate luxury, depending on the location and size of the island, maintenance alone can cost millions of dollars per year,” says Scott Freedson, certified adjuster and CEO of Insurance Claims Recovery Support. “There are also logistical challenges: everything from waste management to infrastructure needs to be built from scratch, often inflating start-up budgets.”
Superyacht
Like private islands, superyachts are very expensive purchases, so even those with deep pockets tend to avoid buying one.
“Apart from the initial outlay, which can range from $10 million to more than $300 million, annual maintenance costs, including crew salaries, port fees and repairs, can amount to about 10 percent of the yacht's initial cost,” Freedson said. “And that doesn't even take into account fuel costs and the complexities of international maritime law.”
Longevity Treatment
While they may still have appeal, some longevity treatments that claim to make you look much younger and healthier than natural just aren't worth the cost.
“Controversial anti-aging clinics promise life extension for millions of dollars,” says Alex Kelji, a certified public accountant with IRS Extension Online. “Some can charge more than $1 million per year for appointments for intensive experimental treatments like stem cell therapy.”
Private jet
If you thought all the super-rich were jetting around the world in private jets, think again: many of them spend their money a lot more sparingly than that.
“While owning a private jet is the ultimate symbol of wealth, it comes with expenses beyond just purchasing the aircraft, which can cost anywhere from $3 million to more than $90 million,” Freedson said. “Operating costs, including fuel, crew training, maintenance and hangar fees, can easily add up to hundreds of thousands of dollars per year.”
Ivy League Education
There will always be families who dream of attending an Ivy League school or similarly prestigious institution, but for many, the high cost is hard to justify.
“Attending top universities like Harvard or Stanford is cost-prohibitive, even for upper-class families,” Kelsey said. “Total costs for a bachelor's degree at the most expensive universities can exceed $300,000.”
High-end artwork
Of course, everyone has different tastes, and sometimes expensive tastes, but many wealthy people are choosing to stop buying prestigious art that sells for millions of dollars at auction.
“Works can go for more than $50 million,” Spitler said, “but despite the prestige, the volatile, volatile and unpredictable art market often makes it a less attractive option, as it can lead to significant losses.”
Space travel
This is a relatively new thing and has been expensive from the start, but only a select few can afford to travel in space.
“Companies like Axiom Space offer expensive space travel that is out of reach for all but a few billionaires,” Kelsey said. “Axiom is developing spacewalk experiences for amateurs that would cost more than $50 million per person, on top of the already-exorbitant ticket prices for a trip to the International Space Station.”
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This article originally appeared on GOBankingRates.com: 9 Expensive Things Even the Rich Don't Buy Now
