It can be pretty overwhelming to put your hard-earned money into something uncertain. Nobody would blame you if you’d like to first find out what other people are doing, especially those who are more financially successful than you. If you are keeping tabs on what the wealthiest Aussies are investing in, you should know that many of them are riding the waves of real estate investing right now. They are even using properties as an important tool for growing and maintaining their wealth.
More HNWIs in Australia
According to a recent report, the number of high net worth individuals (or HNWIs) in the country has reached 234,000. This is a significant increase compared to previous year’s 226,000. These are people with over 1 million AUD in assets that can be invested, excluding their collectables, primary residence, and other goods.
Also, for the first time in history, the Asia Pacific region has finally eclipsed North America when it comes to the combined value and number of HNWIs. In 2015 alone, there were 5.1 million people with a combined wealth of $17.4 trillion across an HNWI population of 4.8 million.
The 20th Edition of the World Wealth Report by the information technology consulting firm Capgemini has placed Australia in the ninth place for global markets that are expected to drive growth through to 2025. Phil Gomm of Capgemini Australia said that the richest Australians were taking advantage of strong real estate prices despite the weaker stock market.
Where HNWIs Are Investing
Image: Herald Sun
Areas currently favoured by the wealthy include those similar to New Farm in Queensland, Toorak in Victoria, and Point Piper in Sydney. The median prices of homes in these locations range from 1 to 15 million AUD which only the rich and famous could afford. There is no need to despair if you have a smaller budget though as you can consider real estate investing in the surrounding areas which are set to become more popular in the future.
Real estate in places such as Tweed Heads and Banora Point in New South Wales, along with Coolangatta and Kirra on the Gold Coast, remain sought-after with property agents. These locales are expected to become hot with dual living property developers and interstate buyers as they offer easy access to the beach and more space minus the high price tags. They are also in demand with those making the switch from urban to suburban living.
How to Invest Like HNWIs
If you are considering investing in real estate, you can contact a professional property agent. Discuss with them your goals and your projected time span. Doing so will help you ensure you end up with a beautiful home to live in or sell.