High Net Worth Investors Bullish on Residential Real Estate Investments
Commercial and Residential Rental Real Estate Investment
According to a new study by Barclays Wealthy, high-net-worth individuals have confidence in real estate as an asset class and plan to increase their portfolio allocations to commercial and residential properties in the near term. Of those surveyed, 75 percent of respondents say that residential real estate looks attractive from an investment perspective, but 60 percent of those same investors note that tight credit conditions are preventing them from taking the plunge.
In addition, 26 percent of wealthy investors believe that real estate has better long-term prospects than other asset classes. Just more than half of the respondents expect an increase in the value of their real estate investments over the next two years. Almost 40 percent of respondents with assets of $50 million or more have greater than 50 percent of their portfolio in real estate.
Residential real estate has many characteristics that set it apart from other asset classes, since it is a long-term investment which is measured over decades rather than years. It’s a tangible asset that offers too many investors perceived security. Among the key advantages of investing in residential real estate, respondents cited: potential for rental income by being a landlord (38.3 percent); capital gains potential (28.6 percent); long-term performance track record (27.1 percent); overall portfolio diversification; and tangibility of brick-and-mortar investments (19.2 percent).
Read more about the study by CLICKING HERE
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