World’s wealthiest investors see property as key to growth
By Max Koh of theedgeproperty.com
Friday, 26 March 2010 10:09
KUALA LUMPUR: The world’s wealthiest investors see property as a key long-term growth in their investment portfolios, while they remain cautious about their investment’s prospects this year. In the Wealth Report 2010 Attitudes Survey by Citi Private Bank and Knight Frank launched on March 23, the wealthy clients say capital growth is more important than yields. “Although equity and property markets have bounced back sharply, the survey responses suggest wealthy investors remain concerned about the state of the global economy,” said Citi Private Bank Asia Pacific chief executive officer Aamir Rahim in a statement on March 25.Only 5% of the Citi Private Bank high-net-worth respondents expect their fortunes to increase significantly this year while 4% expect to see their net-worth diminish and about 90% expect it to remain steady or increase slightly.”Property accounted for 30% of the investment portfolios of those surveyed, while equity was the next most popular investment with 24%,” said Citi Private Bank in a statement released on March 25. In the property sector, half the respondents said residential investments would offer the strongest performance this year, while 30% reckoned commercial property would lead the market.
Capital growth and investment stability were also considered more important than yields when investing in properties. The wealthy investors also rely most on their own expertise when making investment decisions, it said.
“Although relatively few respondents were planning to purchase a new primary residence this year, a significant proportion do see buying opportunities in the current market. Almost 40% says they are planning to purchase an extra secondary residence this year,” said Aamir.
“Evidently, the wealthy still see property as a vital part of their investment portfolios.”
The survey was conducted online on a global cross-section of Citi Private Bank’s clients and was analysed by global property consultant Knight Frank. Respondents were asked to consider their attitudes towards property and other investment classes.
The fact is the rich continue to have property under their portoflio. They trusted property will continue to strenghten their long term investment portoflio. What about you? Do you have any property in your portfolio? Please do so as the power of growth under property was tremendous. It will be your main income contributor in the near future. Just like one of my business associates, he was in business for the past 30 years but last few year he reduce his business activity as he believe property is easiest way to built his wealth. I better name him Mr Y. Mr Y are at his 60’s now and he is busy collecting rental almost everyday. His rental collection reaching above RM2M per year. This excluding gain from the property appreciation. I strongly believe he networth easily exceeding RM20M. By the way, he is in KK. So never look down as KK property market. There is plenty of opporturnity everyway. Happy Investing.