I will not ask what’s your net worth. How about if I use another measure instead to know if you are in the ranks of the ‘super-rich’? Do you own a property in one of the following cities? Dubai, Hong Kong, London, Los Angeles, Miami, New York, Paris, San Francisco, Sydney, or Toronto. According to the 2015 Luxury Defined report from Christie’s International Real Estate, these are the most desirable cities for the affluent home buyers. Yes, that’s you if you already own one or more properties in one of the cities above. Oh yeah, the average starting price for a luxury home around the globe is just US$2-million. I am sure some readers of kopiandproperty.com can already qualify to buy one. 🙂
Actually, these super-rich individuals or even the slightly lesser rich ones are always looking to invest their wealth so that it keeps growing. I have yet to read any report which showed billionaires becoming even richer by putting all his money only under the bed or into Fixed deposits. What about Asians? Where do they buy the most? Actually, it’s not hard to predict. For those with kids, they are attracted to places where there are good education institutions for their children. One country which stands out is Australia. The property market is transparent and I would rate their market as very professional as well. As for overvalued or undervalued currently, that’s up to one’s own judgement.
According to 2015 Wealth Report by Knight Frank, Asia’s super-rich population grew 3.5 percent in 2014, higher than the global average of 3.1 percent. In fact, growth over this part of the world will likely surpass anything and everything in North America in future. How comprehensive and real these numbers are, no need to question, the more important question is to understand how these super-rich continue to think of real-estate as a mainstream investment class. 38 percent of an investment portfolio on average belongs to real-estate among the ultra-wealthy here in Asia.
One day, if I do become super-wealthy I will consider buying in some secondary cities in Britain, other than London. I mean, if my kids can get into a university there it does not necessary need to be in London, right? Haha. As for a nice place to stay for a few months every year I would think Australia seems like a better place. Ad for London, it’s not going to be easy because the whole world is buying London today. Prices are still increasing even if the salaries of the typical income earner in London is not increasing as fast. In a news report in The Telegraph, the average house price in London has reached£463,000. This is 2.6 times the national average which sounds awesomely high for me. Happy reading and understanding as all of us continue to build wealth to live better in the future.
written on 1 June 2015
Next suggested article: Australian property? Take note of ‘what if’ 2017 bubble bursting