Guess what wealthy individuals with more than $10m in assets will spend their money on this year?
When it comes to investments, you might be surprised to learn that property is top of the list. That’s according to The Wealth Report 2010 by Knight Frank and Citibank.
And even more money could be flowing into the property sector this year, the report states, with 71% of this elite group saying they thought 2010 would be a good time to invest in property.
Other hotly tipped investments included hedge funds and equities, but cash, gold and derivatives did not rank well. It’s nice to know that there’s some confidence in the money-making potential of our industry for the super-rich.
But what about for the man on the street or the people in their parents’ spare room?
The spread of these investment portfolios shows that as much as one-third is in property, the biggest proportion by a near 10% margin.
The figures illustrate that as much as 50% of a typical property portfolio is residential stock and that’s excluding the investor’s own home. It seems a world away from the concerns of ordinary would-be house buyers.
But there is common ground. We all want to buy homes, and most of us put far more than 33% of our assets into achieving that.
The problem is that unless you’ve got more than $10m worth of assets, access to funds with which to secure them are hard to come by – so you might just have to put up with your parents’ spare room.