Real estate, currency trades, and market timing are the common denominators of how ultra-high net worth individuals grew their net worth last year.
More than 500 private bankers, industry experts in real estate, wealth advisors, and family offices who were surveyed showed that during the turbulent past year, grew their wealth last year in the following ways:
The top investment opportunity, according to 46% of the survey respondents was real estate both “for its attributes as an inflation hedge or due to the benefits of diversification,” according to Flora Harley, partner, residential research at Knight Frank.
The financial conditions of 2022 provided an opportunity for real estate investors to secure enhanced return profiles and find greater value-add opportunities. The savviest investors specifically cited looked for attractive valuations and distressed opportunities. In real estate, Equities and Tech.
Losses last year were found to come primarily from financial markets and interest rate movements.
In 2023, real estate is expected to remain a top opportunity for ultra-high-net-worth individuals to grow their wealth, with just over two-thirds of ultra-high-net-worth individual searching for value opportunities in the real estate sector playing a much bigger role than in recent years,” according to Liam Bailey, global head of research at Knight Frank.
“Downward pressure on property values, due to higher interest rates, has created a window for private capital—especially as we enter this new market phase with historic lows in terms of the stock of best-in-class property in residential and commercial markets,” he added.
More information on this topic is available on my video: Advanced Tax Strategies for High Net Worth Individuals w Kyle Candlish