Why Is Real Estate Asset Class Common Denominator (The Ultra-Wealthy)?
Real estate wealth creation is the process of investing in different real estate classes where the investments will help in fulfilling key needs. These investments should also be self-contained that can generate a stable source of income, helping one to fulfil their aspirations.
The Ultra-Wealthy, known as ultra-high-net-worth individuals (UHNWIs), make up a group of people who have net worths of at least $30 million. The net worth of these individuals consists of shares in private and public companies, real estate, and personal investments, such as art, airplanes, and cars
Real estate continues to be a popular asset class in their overall portfolio’s to balance out the volatility of stocks.
Savvy investors understand the value of real estate and how it can be used to increase wealth and as a hedge against the volatility of other investments, such as stocks and bonds. Real estate holdings can provide immediate and long-term benefits.
Simply put, they use real estate assets not only for income but as portfolio risk management assets.
Savvy investors tend to focus on Twin Real Estate Tactic approach – going for capital appreciation and income streams.
Not only does this increase the market value of the property, but they are also able to significantly increase the rental income.
As the owner of a property, you stand to benefit from any rise in its value when it comes to selling, from the income it can generate if you rent to tenants – and, of course, from the utility you get from living in or using it yourself.
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