A recent report commissioned by Barclays Wealth and written by the Economist Intelligence Unit shows a renewed confidence in residential real estate. The United States was ranked as the most attractive global real estate market with China and India close behind. Despite economic and financial turbulence, high-net-worth individuals have confidence in real estate as an investment and plan to increase their residential real estate portfolio allocations in the near term.
We are seeing this trend play out in the coastal markets around the Sarasota and Tampa Bay regions. Properties on the water that would have commanded upwards of $5 to $8 million dollars just 3 years ago can now be purchased for $2 to $3 million. Our firm has seen very strong interest from Canada and the UK. One Canadian investor that purchased a waterfront property told me he was ready to invest up to $10 million on waterfront property in Sarasota because he believed that he could double his investment in 5 to 7 years.
Among the key advantages for investing in residential real estate, respondents of the Barclays/EIU report cited: potential for rental income (38.3 percent); capital gains potential (28.6 percent); long-term performance track record (27.1 percent); overall portfolio diversification; and tangibility of brick-and-mortar investments (19.2 percent). Investors were less enthusiastic about commercial real estate, due to rising unemployment rates worldwide.
Read more details about the report at: http://finance.yahoo.com/news/Wealthy-Investors-Call-Bottom-bw-2667684067.html?x=0&.v=1
If you'd like to receive more information about real estate investment opportunities in Sarasota or Tampa Bay Florida, please contact me (813) 765-1182 or e-mail me at steve@TheFloridaAuthority.com .
Steve Eckhardt, Broker/Owner
