This blog post features the full interview we conducted with Donna Haynes, an expert on affluence trends and President of Heartbeat Marketing. Excerpts of our interview with Donna were in the latest edition of YPO-WPO Today (Young President’s Organization & World President’s Organization). We found the information she provided informative and valuable, and hope you will too.

Q: Donna, how do you define “affluent” in 2011?

A: “Discreet Connoisseurs” who want a greater sense of control in every aspect of their lives. The affluent have seen a shift in their value equation.  Value is now found in responsibility, vigilance and resourcefulness.

Q. Generally speaking, do the affluent seem to have a positive outlook on the future of the US

economy?

A. The affluent markets are trending positively again with the optimism index around 54 from an all time low of 49 and a high of 59.

Q. Are you seeing any indication of a shift in the spending patterns of affluent families in 2011 or over the next 3-5 years?

A. Affluent families will spend as much as they did before the downturn but they will be less conspicuous about it.  They are not spending less, they have just become discreet connoisseurs.  They have become more sophisticated in their buying motivations, moving beyond the conspicuous drivers of status and prestige to more discerning factors.

Affluent consumers are moving to a more introverted kind of consumption that involves family, friends, and living well.  These consumers are looking more to “be” than to “have” as values such as family, home and spirituality become more important.  These purchases are made to maintain, not define, their status..

For affluent families the biggest luxury is time, therefore purchases that enable them to spend that time in the best way possible will continue to be in demand, i.e. the perfect mountain lake house.  They covet their leisure and recreational time with friends and family.  These are top-rated things and experiences that affluent consumer’s desire and are reflective of primarily private pleasures and point to an aspiration for leisure time.

The largest shift in spending among affluent families occurred in the segment defined as “new money,” the least-established affluent segment, which represented more than 1/3 of traditional luxury sales. They will remain more frugal and diligent in their purchase decisions moving forward.

Q. Are you seeing any indication of a shift in their spending patterns with respect to real estate purchases, and in particular vacation or 2nd homes?

A. The real estate market as a whole is expected to gain traction through the balance of 2011 for all property types.  Owning a vacation home in the mountains or at the beach was #2 on the “Top Ten-Most Desired” list of the affluent for 2010, just below taking exotic vacations.  Not just any home—affluent consumers demand quality products including knowledge of construction factors and the details of the story behind the artisanship of the home.

Q. What impact might these trends have on the high end real estate market over the next 3-5 years, and do you see these trends being geo-specific?

A. There are several pockets across the country that are doing well based more on being in a spectacular natural setting… than a general geographic location.  They have a relevant story in a truly unique setting that adds true value to their target market. These places create an opportunity for personal growth and discovery along with an opportunity to do something unessential but interesting and not just recreational activities to pass time.

Q. Do you see shared ownership (aka fractional ownership NOT time shares) of high end real estate being a trend that could pick up steam amongst affluent buyers (pay for what you use, don’t pay for it when you don’t use it)?

A: With consumers desire to be more cost-conscious and their aversion to risk, the appeal of

shared ownership versus traditional ownership continues to rise. The fractional industry is predicted to rebound more strongly and rapidly than other segments of the resort real estate industry and rebound with even more vigor than in the record-setting years of 2000 and 2007.

There are many benefits of fractional ownership that fit into the decision calculus of today’s consumer such as:

• Less responsibility, commitment, and cost than traditional ownership.
• Benefits of ownership without the wastefulness: you don’t have to bear the financial burden when you’re not using your asset, therefore it’s a much more sensible ownership model.
• A more sustainable and green second home ownership choice.  Multiple families can own and share a single property rather than having multiple homes owned individually.  This not only saves on the natural resources used in the construction process, but also the ongoing impact that each home places on the environment.
• The high cost of second home ownership and low utilization previously was justified by a significantly higher resale price.  Since this scenario is no longer true, more consumers are moving to this smarter ownership model, and recognizing it as a more responsible use of money than traditional second home ownership.

Thank you for sharing this information with us Donna!

Please click here if you’d like to learn more about a unique shared ownership opportunity at one of the premier mountain lake destinations in the United States.

~The Masters Family

To learn more about Donna or her company Heartbeat Marketing, please visit:  www.hbmadvantage.com

Luxury lake properties in the United States are entrancing, and one of the primary ones that is catching connoisseurs’ attention is The Jocassee Club, located on Lake Jocassee in South Carolina. Over 75 miles of untouched shoreline is home to a rare microcosm of rare animal and plant life in a sort of sequestered microclimate. Not only is the land pristine from a consumer point of view, it is pristine in the sense of its artificially beautiful flora and fauna compared to the surrounding area. Those people that want to indulge both sensibilities – the pastoral and the adventurous – can combine their tastes in a property in the Jocassee Club. Lake Jocassee hosts some of the most enchanting scenery in the country – including waterfalls, hills, lush greenery, and much beautiful terrain for finding animal and plant life. Only about 40 homes have been developed in the area so it is still quite a secluded community that will give you peace of mind in deciding to take a sabbatical there. There are natural and manmade features at The Jocassee Club that combine to ease every irritation you might have discovered with other lakefront properties. No expense has been spared with regard to the amenities, features, grounds, or waterfront layout. Gently sloped walkways, parking, easy access to docks, miles of walking and hiking trails, easy access to hobbies and sports like fishing, water skiing, boating, and mountain biking, and art, furniture, elevator access, and quaint, well-designed, spacious, accommodating homes that look as good on the outside as they feel on the inside. Visitors can get the peak of what nature has to offer and the height of what manmade construction has been able to accomplish in architecture, taste, and culture.

Other lake properties on Lake Tahoe, for instance, can’t compare; they are so saturated with consumers, visitors, tourists, and weekend visitors that they lost the seclusion, peace, privacy, and pastoral landscape that it is a protected feature of The Jocassee Club. Furthermore, the properties on Lake Jocassee have a uniform look of luxury, and you are never risking anything when you go with the proven critics’ reviews of The Jocassee Club. The Jocassee Club is called the Lake Tahoe of the East by some, but it is far better where Lake Tahoe has deficiencies.

Compare either of the two above locations for choosing your lake property to some individualized lake front property offered without consideration of form, community, or surrounding areas. There may be many expensive properties with lakefront access, but not all of them have the resources, standardization, seclusion, and essential qualities in something like The Jocassee Club. The Club is an esteemed members’ only community, and there is considerable attention to detail in making sure every facet is well-managed.

With Veteran’s Day behind us and Christmas right around the corner, it’s a great time to reflect on the things we should all be thankful for–one of those being the men and women of the U.S. Armed Forces.

With that in mind, we’d like to share one of the most inspiring, heart wrenching stories we’ve ever heard and introduce you to Marine 1st Lt. Andrew Kinard, born and raised in nearby Spartanburg, SC.

After graduating from the U.S. Naval Academy in 2005, Andrew had a world full of opportunity in front of him. Instead of going into the private sector or immediately pursuing an advanced degree, he decided to serve our country in the U.S. Marine Corps as an Infantryman, which virtually guaranteed that he would be deployed to the front lines of either Iraq or Afghanistan.

In August of 2006, Andrew deployed to Iraq with Alpha Company, 2nd LAR (Light Armored Reconnaissance Battalion), where he was an Infantry Platoon Commander. Andrew and his platoon loved building relationships with the local population and took particular joy in handing out candy to Iraqi children. On any given day when Andrew and his patrol approached, the kids would always run out into the streets with big smiles on their faces to say hello, give high fives, and see what treats were in store for them.

One particular day while leading a seemingly routine foot patrol in the Al Anbar province, Andrew’s team noticed that something felt “off.” As they approached a familiar area, the few children still in the street were quickly snatched up by their parents and taken indoors. His platoon had walked into an ambush…

Lt. Andrew Kinard did not wake up for another month. When he regained consciousness, he had no memory of what had happened to him or how he had ended up in the intensive care unit of Bethesda National Naval Medical Center back on U.S. soil. He also had no memory of how he had lost both legs up to his torso.

Thereafter, Andrew and his family learned that he had been standing directly on top of an IED (Improvised Explosive Device) that had been detonated by an insurgent during a surprise attack on his Battalion. His family learned of the heroic efforts of the new medic that was on patrol with Alpha Company for the first time on that fateful day and bravely went against protocol by allocating finite field medical supplies to keep Andrew alive despite tremendous blood loss and multiple cardiac arrests. They learned of the U.S. Army medic who happened to be driving his jeep past Andrew on a military airport tarmac in Germany during the return flight home, noticed Andrew unattended and going through cardiac arrest, and slammed on his breaks to resuscitate him. They learned of all the other times that Andrew could have and should have died, were it not for the courageous efforts of his fellow citizens and servicemen.

During the initial examination of Andrew’s injuries, his doctors at the V.A. hospital gave Andrew a small chance of surviving. They informed Andrew’s family that if he did survive, the trauma his brain had endured meant he would likely never regain his full mental faculties. What the doctors did not know about was the character and willpower of Andrew Kinard.

Since that time, Andrew has endured countless surgeries and medical complications. Yet, he has never given up. Each day, he chooses to remain positive, despite having ample reason to feel down. He refuses to let the damage to his physical being debilitate the thing which he has ultimate control over: his mind. So, where is Lt. Andrew Kinard today? For those of you who have the honor of knowing him, you might not be surprised to know that Andrew will be graduating from Harvard Law and Business School in 2013 with a duel MBA and law degree.

We are thankful beyond words for men and women such as Lt. Andrew Kinard, who serve and protect the citizens of this country. We are equally grateful to those who teach (without words) that life is “90% attitude and 10% circumstance,” to borrow Andrew’s phrase. We will be what we will to be.

Our family is honored to have the Kinard Family as our guests at The Jocassee Club on Lake Jocassee this fall, and we look forward to meeting this remarkable young man in person. If you or your family would like to learn more about Andrew, here are a few good places to start: Harvard Law Article, Andrew Talks to the US House of Representatives, Hope for the Warriors Project.

-The Masters Family