Real estate investments have always been a popular choice among high net worth investors, especially after the recession hit the market in 2008. Many private investors lost their faith in financial instruments, after the crash, and turned to tangible assets, such as real estate which offers extremely competitive returns over intangible assets. If you too are looking for investment opportunities that promise a competitive return in the long run, now is the right time to invest in real estate. If you are still not convinced, here are some of the key factors that make real estate investment a safe haven for HNWIs. Read on.
1. Interest Rate Remains Low
One of the key reasons for the boom in real estate investments are the low interest rates. Due to the low interest rates, there are more buyers for residential and commercial properties as compared to any other investment vehicle. Low interest rates mean lower borrowing costs and increased profits.
2. A Tangible Asset
Unlike intangible (financial) assets, tangible assets work as an inflation hedge. After the financial crisis of 2008, many investors turned to tangible assets, mostly real estate, which carry a greater potential of price appreciation over the long run.
3. International Regulatory Changes
Due to liberal international regulatory changes and wealth creation, especially in Asian countries, HNWIs from these countries are not leaving any opportunity behind to invest in international properties, especially in America, Britain, and European market.
4. Negative Yield on Bonds
The negative yield on government bonds is no longer unknown to investors. In countries such as Germany and Switzerland, government bonds are offering negative yields, which is why investors are now turning to other asset classes, including real estate.
Real estate investing by HNWIs is at all-time high and will continue to increase. If you are looking for investment vehicles that offer competitive returns, you must invest in real estate. We, at Fig Tree, specialize in securing off the market properties at wholesale prices and help you create the best cash flow through real estate investments. Should you wish to learn more about our services, feel free to call (866) 300-2170 / (866) 894-7309 or fill out our contact form, and we will get back to you shortly.