“Yeah, it seems the best way to hurt rich people is by turning ’em into poor people. …” For the movie buffs reading this you probably figured out that this quote is from the 1983 classic, “Trading Places” when Billy Ray Valentine (Eddie Murphy) and Louis Winthorpe III (Dan Ackroyd), plot against Mortimer and Randolph Duke (Don Ameche and Ralph Bellamy).
Why do I share this movie quote with you today? A recent report prepared by the Economist Intelligence Unit and commissioned by Barclays Wealth, entitled “Prospects for Property: On Solid Foundations?,” found that despite economic and financial headwinds, high-net-worth individuals have confidence in real estate as an asset class and plan to increase their portfolio allocations to commercial and residential properties in the near term. Of those surveyed, 75 percent of respondents say that residential real estate looks attractive from an investment perspective. The study polled over 2,000 wealthy individuals globally in August and September 2009.
“Now that real estate prices seem to be stabilizing globally, wealthy investors are again thinking about increasing their allocations to this asset class,” says Michael Crook, Alternatives Strategist at Barclays Wealth.”
“Investors find real estate to be an attractive investment for a variety of reasons, including the potential for both capital appreciation and rental income,” said Brian Nick, Investment Strategist.
In addition, the research shows that the U.S. is regarded as the most promising real estate market by some margin.
Well, if high net-worth individuals are going to put their wealth into real estate, then who am I to argue? They must be confident, because as the “Trading Places” quote notes, “the best way to hurt rich people is by turning ’em into poor people.”