yojimbo, yes, it’s the same thing as your Nike analogy, with the key being “albeit on a smaller monetary scale.” If you spend an extra $15 to buy that Nike shirt it’s no big deal for most people. In other words, the additional “perceived – but not real – luxury” is relatively inexpensive. However, if you spend an extra million dollars or two just to live somewhere with the proper address (with no material advantages) then… well… that’s an extra million or two. Now if you’ve got $25 million plus, no big deal – that’s not necessarily crazy to me; you’re talking about a rounding error. But if you’re the average person doing this, with, say, a $10 million net worth, then spending an additional 10%-20% of your net worth just for the address is… well… crazy. The degree of insanity is inversely proportional to the buyer’s net worth. In my opinion.
