Twenty five percent of Millionaire investors with a net worth between $1 million and $5 million said they would invest in real estate with their investable funds, according to recent Spectrem Group research. That category finished fifth among industry sectors behind technology (57 percent), healthcare (53 percent), pharmaceuticals (41 percent), and communications (33 percent).
Fourteen percent of Millionaires said they have plans to invest, or increase their investment, in investment real estate. That is the same percentage as reported interest in the 2012 study.
Ninety-four percent of Millionaires own a principal residence with an average value of $518,000. Twenty-nine percent own a second home or vacation home valued at $274,000 on average. Eighteen percent own residential rental property, 14 percent own undeveloped land, 4 percent own commercial rental property and 7 percent own other investment real estate.
Among Ultra High Net Worth investors with a net worth between $5 million and $25 million, 28 percent said they would invest in real estate, while 20 percent said they have plans to invest in real estate in the next 12 months. That is a 2 percent increase from 2012 figures.
Ninety-five percent of UHNW investors, those with a net worth between $5 million and $25 million, own a principal residence valued at an average of $842,000. Forty-one percent own a second or vacation home with an average value of $610,000.
Twenty-six percent own residential rental property, 21 percent own undeveloped land, 13 percent own commercial real estate and 13 percent own other investment real estate.
The younger the investor, the more likely they are to be invested in real estate. Among UHNW investors, 58 percent own a second or vacation home (well above the average of 41 percent), and 67 percent own residential rental properties. Forty-two percent own undeveloped
Only 11 percent of Mass Affluent investors with a net worth between $100,000 and $1 million plan to invest or invest heavier in real estate, and that is down from 14 percent in 2012. Only 82 percent of Mass Affluent investors owned their principal residence (compared to 94 percent of Millionaires and 95 percent of UHNW investors), only 17 percent had a second or vacation home, and less than 10 percent owned any other kind of investment real estate.
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