Bloomberg reported on a Morgan Stanley Wealth Management team finding which declared that US millionaires see real estate as the top alternative-asset to own this year. As specialists in luxury real estate, we’re excited to report on this trend. The MS Wealth Team released a survey amongst investors which found that direct ownership of residential and commercial properties was the number 1 alternative-investment pick for 2014. 33%, the largest segment of the group, indicated that they planned to buy this year. 23% will invest in real estate investment trusts.
Factors which help this trend along include the rebounding real estate market in the US, where fixed-income yields are very low and equities strong. Another helpful force are the foreign buyers who have been actively snatching up very high end real estate. These wealthy foreigners bought properties as a security as transactions occur in dollars, and this allows domestic millionaires to maintain the value of their properties. This is also driving competition which in turn drives prices up. To discuss more helpful luxury real estate trends, call a ONE | Sotheby’s International Realty estate agent.