Where The Smart Money Goes

The Weath report 2010 published by Knight Franck and sponsored by the Citi Private bank demonstrated that for the High Net worth individuals (HNWIs) have a huge preference for tangible assets with properties representating the largest share of their investment portfolio.

In Average property accounted for 1/3 of their assets, with a pic to 50 % for western european citizen. It appears that property represent by far the biggest investment of the Weathies person, before equities which only represent 25 % and cash for less than 20 %.

Property represent also the most promissing investment for the HNWIs. F0r more than 2/3 of them property investment shall bring significant profit in the next year, before equities and hedhe funds, gold being considered as one of the less attractive due to it’s very high cost as off today.

In terms of property portfollio, residential properties represent 50 % of the assets, whereas commercial property roughly 40 %. It appears consequently that in terms of choice of invetsment, these two investments represent 90 % of the portfollio, whereas, REITs, property funds and agricultural properties all together do not attract more than 10 % of the investors.

The Weath report establish that for property investors the main criteria was the capital growth, followed by stability of the assets and the yield. In terms of choice of principal residence, the main factor was the reputation of the area, followed by the security of the area and right after the design and size of the property, price only coming as 7th in the ranking of factors of decision.