March 6, 2014

Real estate is top choice among alternative investments for millionaires

A survey released by Morgan Stanley earlier this month showed that 77 percent of people with at least $1 million in assets own real estate. In its press release announcing the findings, Morgan Stanley wrote, “Regarding ownership of alternative asset classes, real estate has no rival.”

Millionaires reported investing in real estate at a much higher rate (77 percent) than in other alternative asset classes, such as collectibles (34 percent) and precious metals (28 percent).

Real estate is an attractive option compared to other investments that have been showing lower yields due to low interest rates. Commercial property values rose 8 percent in 2013, continuing a trend of increasing values since the 2009 low. Values have increased nearly 71 percent since that low.

An annual PwC survey report notes that “the real estate recovery will gain momentum in 2014.” Later in the report, PwC notes that “survey participants agree that success and profits in 2014 will, as form follows function, come to those with real estate operating and management skills.”

So, proper management of real estate is a key factor in considering real estate as an investment option, which is where PointOne Holdings comes in. Our expertise in investing in, operating and managing real estate assets takes the burden off you as the investor.

Real estate recommended to those hoping to become millionaires

Respected business publications from Forbes to Entrepreneur recommend real estate as key option to consider on the road to building wealth. Why? Because real estate offers a source of cash flow and helps millionaires diversify their income streams, which helps mitigate overall investment risk.

“Some of the wealthiest people I know made their money in real estate,” wrote Dana Anspach, About.com’s Money Over 55 expert. “A few got lucky and inherited land their family had owned for a long time. Others are self-made real estate millionaires.”

Foreign investors eye United States real estate for higher yields

Foreign investors are also looking to the United States as a safer bet for real estate than their home soil, and the U.S. commercial real estate market leads the pack as the “largest and most liquid,” according to Jones Lang LaSalle.

According to the report, in Q4 of 2013, the United States “posted the highest amount of direct real estate investment of $80.2 billion, compared to $66.7 billion in the fourth quarter of last year for a 20 percent gain.” The next largest market, the United Kingdom, posted $25 billion in the same quarter.

The report notes that “the bigger picture is that foreign capital as a whole is expected to remain a growing part of the U.S. real estate market.”

We thought you’d like to know….

Sincerely,

PointOne Holdings