Real estate “top investment” in 2014, say US millionaires

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luxury condoMillionaires in the US see real estate as the “top alternative-asset class to own” in 2014, according to a survey by investment bank Morgan Stanley released on February 7.

About 77 per cent of investors with at least $1 million in assets own real estate, the survey found. Direct ownership of residential and commercial properties was the No. 1 alternative-investment pick for 2014, with a third of millionaires surveyed saying they plan to buy this year. Twenty-three percent said they expect to invest in real estate investment trusts, the second-most popular choice.

Wealthy investors are turning to a rebounding real estate market as fixed-income yields remain historically low and equities surge. US commercial-property values rose 8 per cent in the 12 months ended January 31, and have jumped 71 per cent since hitting their post-recession bottom in 2009, research firm Green Street Advisors Inc. reported according to Bloomberg.

Collectibles ranked as the third-most-popular alternative-investment choice this year, with 20 per cent of millionaires saying they planned to buy, followed by private equity at 19 per cent and precious metals at 16 per cent.

Foreign buyers eyeing US property market

The Manhattan high-rise condominium buildings One57 and 432 Park Ave., where units have gone under contract for more than $90 million, are evidence of the faith that the very wealthy have in real estate, said Mitchell Roschelle, real estate advisory leader at PricewaterhouseCoopers LLP. Such properties have also attracted international buyers.

Wealthy foreigners have bought high-end US properties for their safety and because they’re denominated in dollars, the world’s reserve currency, he said. This helps domestic millionaires maintain the value of their property investments.

Morgan Stanley Wealth Management surveyed 1,004 US investors aged 25 to 75, with least $100,000 in assets, during the fourth quarter of 2013. A third of them had more than $1 million.

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Reading Time: 2 minutes

Millionaires in the US see real estate as the “top alternative-asset class to own” in 2014, according to a survey by investment bank Morgan Stanley released on February 7.

Reading Time: 2 minutes

luxury condoMillionaires in the US see real estate as the “top alternative-asset class to own” in 2014, according to a survey by investment bank Morgan Stanley released on February 7.

About 77 per cent of investors with at least $1 million in assets own real estate, the survey found. Direct ownership of residential and commercial properties was the No. 1 alternative-investment pick for 2014, with a third of millionaires surveyed saying they plan to buy this year. Twenty-three percent said they expect to invest in real estate investment trusts, the second-most popular choice.

Wealthy investors are turning to a rebounding real estate market as fixed-income yields remain historically low and equities surge. US commercial-property values rose 8 per cent in the 12 months ended January 31, and have jumped 71 per cent since hitting their post-recession bottom in 2009, research firm Green Street Advisors Inc. reported according to Bloomberg.

Collectibles ranked as the third-most-popular alternative-investment choice this year, with 20 per cent of millionaires saying they planned to buy, followed by private equity at 19 per cent and precious metals at 16 per cent.

Foreign buyers eyeing US property market

The Manhattan high-rise condominium buildings One57 and 432 Park Ave., where units have gone under contract for more than $90 million, are evidence of the faith that the very wealthy have in real estate, said Mitchell Roschelle, real estate advisory leader at PricewaterhouseCoopers LLP. Such properties have also attracted international buyers.

Wealthy foreigners have bought high-end US properties for their safety and because they’re denominated in dollars, the world’s reserve currency, he said. This helps domestic millionaires maintain the value of their property investments.

Morgan Stanley Wealth Management surveyed 1,004 US investors aged 25 to 75, with least $100,000 in assets, during the fourth quarter of 2013. A third of them had more than $1 million.

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