July 13, 2024


Mad about real estate

Why High Net Worth Individuals Invest In Real Estate

All investors prefer to invest in a diversified and balanced way, whereby the funds are spread out rather than being concentrated in one basket alone. Present day investments range over stocks, shares, mutual funds, insurances, pension plans and most importantly into estates and properties. Allocation of funds is governed by a number of parameters like taxes, goals and preferences.

Is real estate a good investment? The rich seem to think so! Without a doubt most high net worth individuals put their money into real estate. This is either in the country where they reside or “offshore” in places where they like to holiday or let it out to holidayers. Places which feature and fall into the popularly opted for locations are Hawaii being close to the US, or in the Balerean Islands in close proximity to Spain and such other places.

Why do high net worth individuals invest in real estate? Today most families love to holiday at sea resorts or in the mountains and other places of interest. So buying property in such places is ideal for letting out during peak seasons when the place is crowded with tourists. Out of season is the time then when the place is available for you to holiday or get-away.

The category of residential and commercial properties falls within real estate investments, and are available in most areas, dependent on where you would like to invest. Many high net worth individuals invest in resorts and hotels as well. The various offshore companies and brokers can inform you on real estate available and how the taxation laws work.

Investing in real estate with mortgage facility helps save taxes legally. Most of the brokers and financial advisors offer their customers personalized and comprehensive advice on matters of real estate. They also arrange for local finances in cases of investing abroad. Investors are taking advantage of the low borrowing rates to finance direct investments in commercial and residential properties.

The good thing about locating and identifying real estate abroad and even locally today is that it is becoming easier and easier. All you have to do is access the information over the net. However, in the case of high net worth individuals, you do not have to do it yourself. You only have to tell your broker or investor and the job is done. The broker will do all the research and may even check out the property to give complete information on the property to his client, i.e. the net worth individual. He will save you the time and effort of running property to property, which is to be done only after he has short-listed the ones nearest to your requirements.

The broker takes on the responsibility of reviewing the various financial models and the current interest rates on mortgage taken by banks and insurance companies.

Real estate investments are on the rise for the simple reason there is an increase in the number of high net worth individuals all over the world. High net worth individuals have major global or national investment advisors handling their asset management portfolios.