Millionaires Look To Real Estate as Top Investment for 2014

Millionaires Look To Real Estate as Top Investment for 2014

432_Park_AvenueAccording to Morgan Stanley, millionaires across the United States see real estate as the best alternative asset they could own in 2014

A survey conducted by the N.Y. based investment bank revealed there are approximately 77% of investors with at least one million dollars in assets who own real estate assets. A large part of the country’s millionaires took direct ownership of commercial and residential properties this year as a very effective investment method which promises to be a great income maker. Out of all these people, 1/3 them said they are planning on buying this year. The second most popular choice amongst investors was to invest in real estate investment trusts, with 23% of them planning on doing so this year.

Because equities surge and fixed income continues to remain incredibly low, according to Riverside, CA Real Estate experts, many rich investors consider turning to a rebounding real estate market. In fact, in the twelve months ended January thirty firsts the value of US commercial property rose by eight percent and since they hit their bottom after the recession, they managed to jump 71%.

The third most popular investment alternative this year were collectibles with twenty percent of millionaires being ready to buy. The next two best investment choices were private equity at 19% and precious metals at 16%.  (

Interest Rates

Over the next few years most investors believe that interests may remain stable or even decline, while stocks are sure to get more expensive. This is in fact the main reason why they are interested in alternatives such as real estate for income and returns.

Having a minimum of ten million dollars in investable assets, members of Tiger21 decided to increase their allocation to real estate in 2013 to twenty one percent starting from the 4th quarter from nineteen percent in the first 3 months of the ear.

One of the Tiger21 members (Will Ade) said stocks show quite a lot of vulnerability in 2014 and that is why real estate seems like a pretty great investment alternative. This year the S&P five hundred has fallen more than 4%, while stocks from developing countries have fallen due to concerns the economies are only going to get worse.

Foreign Buyers

One example of the great faith many millionaires have in real estate are the 432 Park Avenue and One57 buildings where there are units under contract for more than ninety million dollars. Many foreign buyers decided to purchase US real estate not only for their own safety, but because properties are also denominated in the world’s reserve currency, the US dollar. As a result, this is helping many domestic millionaires with maintaining the value of their various property investments.


Chilean Fund


During the 4th quarter of 2013, MSWM surveyed 1004 investors from the United States aged between twenty five and seventy five years old who had at least 100 thousand dollars in assets. The data from the survey showed that 1/3 of them had more than one million dollars.


It seems that owning real estate is very attractive for a lot of rich people and that’s due to the stream of rental income and the appreciation of property value, but also due to superior supervision and control over the investments.



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