SpaceX billionaires are willing to spend on luxury homes, watches, and vacations

A version of this article first appeared in CNBC’s Inside Wealth with Robert Frank, a weekly guide to the high net worth investor and consumer. sign up to receive upcoming programs, straight to your inbox.

The SpaceX IPO is expected to raise thousands of new billions and many new billions. While current and former employees won’t be able to sell their shares right away, some are already planning how to spend their money.

That newfound wealth could have a negative impact on the entire market for luxury properties near the SpaceX offices and boost spending on watches, jet charters and other status symbols, experts told CNBC.

Realtor Gerard Bisignano said he recently received inquiries from longtime SpaceX employees looking for homes in California’s South Bay area. He said they are between 30 and 40 years old.

“They seem to be in a state of disbelief that they will suddenly be able to, in some cases, buy a home for their parents. They will have all this money that is earned by realizing that they can do what they really want,” said Bisignano, a partner at Vista Sotheby’s.

SpaceX’s California office is within walking distance of the affluent coastal communities of Manhattan Beach, Redondo Beach, Hermosa Beach and Palos Verdes Estates. Bisignano said he expects more SpaceX employees to snap up luxury homes in the area. He noted that there was a similar buying frenzy in areas near Facebook’s headquarters after that company’s IPO in 2012, with home prices jumping 21%.

Bisignano said he also expects an influx of interest in second homes in other beautiful California areas such as Mammoth Lakes, Palm Springs and Tahoe.

Texas real estate agent Gary Dolch said he sees similar interest from SpaceX employees in the greater Austin area, with SpaceX’s Bastrop campus located about 30 miles from downtown Austin. Some plan to buy soon after taking out a loan, while others are waiting for the IPO to close, he said.

Homebuyers’ preferences run the gamut from luxury homes in Lake Austin or Lake Travis to 1,000-acre farms far from the city, Dolch said. He added that he hopes the IPO will boost Austin’s luxury market, which has been soft for the past three to four years.

“It feels like we’re on the verge of the next wave in Austin expansion fueled by this technology drive,” he said.

The nouveau riche rarely stop spending on their dream home, says Bisignano. He expects buyers to fight for homes with four-car garages to fit their new Ferraris.

And while sports cars are a popular choice, luxury watches are a practical status symbol for everyday use.

Paul Altieri, CEO and founder of Bob’s Watches, said a watch is often a luxury purchase after a big money event. He said customers tend to choose Rolexes as they are instantly recognizable. Models like the Daytona, GMT-Master II and Submariner are popular, he added.

“The watch is a reminder of what has been accomplished every time you put it on,” he said. “The stock certificate stays in the broker’s account. The watch stays on your wrist.”

John Shmerler, CEO of The 1916 Company, a luxury watch and jewelry retailer, said customers who have been waiting for years are often willing to pay a premium for watches previously owned by premium brands such as Patek Philippe and FP Journe.

The splurge doesn’t stop there. While some SpaceX employees may already be flying first class, the IPO will allow many to fly privately.

DJ Hanlon, senior vice president of sales at Flexjet, and Kolin Jones, founder and CEO of Amalfi Jets, said their private jet companies have seen recent inquiries directly related to the SpaceX IPO.

Jones said customers are already chartering jets to celebrate the event with a trip.

A top choice to celebrate a liquidity event is Las Vegas, especially for young flyers traveling without children, Jones said. Miami and Cabo San Lucas, Mexico, are also popular destinations.

Flyers looking to take the whole family on vacation, however, are leaning toward Aspen, Colorado, and Yellowstone National Park, Jones said. And Disney World is a classic choice for local families with young children who want to avoid the hassle of airport security, he added.

With new wealthy clients, the Amalfi Jets sales team sometimes gets follow-up calls from wealth managers asking to cancel their client’s charter or downgrade the smaller jets, Jones said.

“Sometimes it’s funny to see clients arguing with their wealth manager, saying, ‘No, it’s my money, I want a Gulfstream’,” he said. “There’s going to be a lot of people flying privately for the first time, and I think it’s going to be a really fun investment.”