The Young and Wealthy Are The New Housing Magnates
To be young and wealthy and a business guru.
While many mortals like us are still working ourselves to death to pay our bills and survive, many Ultra- High-Net-Worth (UHNW) individuals under 30 with more than $30 million in assets, are busy buying properties and jacking up their real estate portfolios.
In a report, Realestate.com.au said the perception that property moguls are the typical baby boomers, or those born after World War II, are not entirely accurate. Many of these young wealthy are actually acquiring real estate investments, the report said.
According to Realestate.com.au’s annual Housing Affordability Sentiment Index (HASI) survey for 2014, these so-called Generation Y, those born between 1981 and 1994, are buying properties earlier than the previous generations.
The surveyed showed that a significant majority or 89 percent of Gen Y acquired their first property before they even turned 30, with nine percent of those polled bought their first house when they were still under 20 years old. The number reflects the highest percentage than any of the other generations, the survey showed.
And if the trend continues, Gen Y is on the brink of overtaking the other generations in terms of home ownership.
HASI also found that 50 percent of those aged between 25 and 29 years old are buying properties, compared to 37 percent for Gen X, 31 percent for Baby Boomers and 29% for the so-called Lucky Generation.
Since last year, the number of Gen Y which owned properties rose by five percent to 53 percent. Interestingly, 23 percent of those surveyed said they bought their properties for investment. Another 47 percent of young home owners say they plan to buy a second property within the next five years to add to their portfolio, while others say they are thinking of engaging in stock investments as well.
A separate report by BBC quoted data from Wealth-X, a company that tracks the ultra wealthy set, said “the under-35 group of wealthy typically tries to use the money they have to make even more,” explaining the attitude of the Gen Y to buy more properties as investment.
Wealth-X said 1.6 percent of UHNW are aged below 30 years old, while 5.5% are between the ages of 30 and 39. Among these Gen Y are Facebook’s Mark Zuckerberg, Napster founder Sean Parker and TAL Education Group founder Zhang Bangxin.
Mark McMullen, head of the family office for Geneva-based wealth management firm Stonehage said that majority of young and extremely affluent things of life as a complicated mix of spending and saving, but at the same time should include buying big ticket items like cars, houses, alcohol and handbags, travelling around the world and reinvesting in their businesses to make even more money.
McMullen said, “These are highly entrepreneurial, highly ambitious people. Because they’ve made money quickly, they think it’s easy to do and they often try and recreate what they’ve already done.”
Gen Y’s who are looking for real estate portfolios can take advantage of the new technology offered by RealBiz Media Group, Inc. (OTC:RBIZ).
According to the company’s web site, Realbiz ‘s proprietary video processing technology makes it one of the leaders in providing home video tours to the real estate industry.
It added that they have a wide client base that includes more than 60,000 real estate agents and brokers. Award-winning search engine and social media marketing platform, ReachFactor is one of the company’s many products.
RealBiz’s video microsite program offers an end-to-end solution integrating property videos and unique video content that can be easily viewed across all devices.
The web site also has an online virtual tour creation and marketing program for real estate agents. The agents can easily create unlimited virtual tours and YouTube videos syndicated to Realtor.com.
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.