If you want to grow your own wealth, it makes sense to look to people who’ve already made their millions for advice. If the investments of Australia’s richest people are anything to go by, the greatest money to be made is in the property market.
A survey by management consultant firm Capgemini found property accounts for the greatest proportion of the investment portfolio of wealthy Australians. To qualify, these Australians needed assets outside their own home totalling more than $1 million US, or roughly $1.4 million AUS. On average, property accounts for 30.8 percent of the investment portfolio of these Aussies, more than equities (26.5 percent), cash (21.6 percent), and other investments (21.1 percent).
Cashed-up Australians are also more likely to spend money on property than wealthy residents in other parts of the world. Real estate makes up just 21.4 percent of the investment portfolios of wealthy Asians. Globally, the average stands at just 18.2 percent.
“Wealthy Australians think that property will give them the maximum return on investment,” Dipak Sahoo, the director of financial services at Capgemini Australia, told the Financial Review. “In the rest of Asia, real estate does not rank as highly because property prices have cooled off.”
The Capgemini report also found that the concerns of Australia’s very rich aren’t too dissimilar from the rest of us. They worry that they won’t have enough cash to last their lifetimes, whether they will be able to afford retaining their current lifestyle once they retire, and whether healthcare will continue to remain affordable. Investing in property helps give them the peace of mind that no matter what happens, they’ll have financial security in their golden years.
The good news is that you don’t need a cool million to enter the property market. Speak to Chase Edwards today to learn how easy it is to follow in the footsteps of these rich Australians and start building your own property portfolio to secure your wealth.