Thanks to the strong gains in the housing market, millionaire-investors in the U.S. are targeting real estate as their top investment strategy in 2014, according to a new report from Morgan Stanley.
Bloomberg provided an extensive analysis of the study, which you can find here. The most pertinent fact worth knowing for those in the real estate business:
“Direct ownership of residential and commercial properties was the No. 1 alternative-investment pick for 2014, with a third of millionaires surveyed saying they plan to buy this year.”
That’s certainly a strong vote of confidence for the U.S. housing market moving forward. There are several reasons why millionaires are increasingly turning to real estate as an investment. Perhaps most notably, Bloomberg points out many investors see stocks as getting to0 expensive and they believe interest rates will remain low, or perhaps even decline in the next couple of years. Additionally, fixed-income yields are historically low
According to Bloomberg, wealthy investors are also of the mindset that this is probably the last year profitable buys can be made in real estate. Therefore it will be smart to take advantage before the opportunities dry up.