Owning property can be a good way to invest money. For wealthy individuals, stockpiling property has proven to be an easy way of making more money. The reality is that real estate investment offers good returns on investment for many people with multiple property investments.
Here’s what you need to know about stockpiling trends
Home ownership has been steadily declining among the younger generation – giving wealthy investors more opportunities to buy property.
Knight Frank Luxury Investment Index (KFLII) details what liquid assets the world’s billionaires are spending their money on. According to the index, the richest people in the world are stockpiling property.
The rich are also doing this to have havens to go to. In addition to property they may already own, this property is purchased as a way to provide a safe haven for the wealthy in case they may need to.
Property taxes may be funding massive stockpiles. Lower taxes may have created more attractive avenues for wealthy individuals to invest their money. With lower taxes in some countries, more people have been able to stockpile property as a result.
Also known as “property hoarding,” in some circles, stockpiling property can be regarded as unused property owned by the rich or property used a few times a year. While some people have questioned this as a moral issue, the reality is that capitalism allows this trend to flourish –leading to large strips of land being owned by the wealthiest people and families.
At its core function, stockpiling property is essentially an easy way to increase net worth. Owning multiple properties and renting them out for profit is a definite way to increase wealth. It’s also a simple and convenient way to make money, without too much administration involved. It’s also sustainable as more people are looking for property to rent.