Tuesday 26 November 2013

Residential And Industrial Real Estate Investments Remain Favourites Of HNWIs

Investing in real estate is recommended by finance experts from all over the world for a number of reasons. Real estate offers more stable pricing compared to other, more volatile channels. It has a high tangible asset value. Properties offer a stable and significant income return which is highly attractive to potential investors. And real estate can create a positive impact on your portfolio diversification initiatives.

It's no wonder, then, that even high net worth individuals or HNWIs (which, in the UK, refers to people with a net worth in excess of £5 million) have a strong preference for investing in both residential and industrial real estate. The Cluttons International Private Capital Survey 2013/14 recently revealed that London is the most attractive real estate market in the world for HNWIs. According to the global property consultant Cluttons which conducted the research, London's "safe haven status" is the foremost financial driver for investment in the city. The lifestyle of the city's inhabitants as well as the quality of education that can be found there were also powerful motivators.

Elsewhere in the world, investment properties also remain high on the list of HNWIs' asset preferences. The Hall & Partners Open Mind survey carried out for The Australian newspaper pointed out that 54 percent of the 202 surveyed wealthy investors (with at least $500,000 to invest) own an investment property, while 24 percent maintain a self-managed super fund.

Because they are putting larger amounts of money into their investments compared to the average person, it is highly important for HNWIs to hire the services of reliable financial advisors or consultants to oversee the management and protection of their assets. HNWIs are also vulnerable to devastating losses if their financial matters are handled poorly, so it's best to have experts on their side.

There are family offices that are schooled and trained in precisely the different wealth management requirements of the wealthier population. Their services can include highly professional services such as investment portfolio management, cash flow management, family business monitoring, multigenerational succession planning, tax services, and philanthropic or political donations.

Trust is a key factor in determining the ideal consultants to hire to manage a wealthy individual or family’s assets; the right firm will have the client’s best interests at heart and will guide them toward the best directions to follow. With these family offices (even virtual ones) providing essential financial management services, HNWIs can stay on track regarding their complex wealth management responsibilities and continue to build their assets through real estate.

Do you have have any questions or suggestions? Write in comment section.

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