When you are considering where to invest then you can do a lot worse than watching what the world’s richest people do. While there has been much noise in the media touting the new billionaires you could be forgiven for believing that the only way to make money is to invent a new technology.
However, looking at the Forbes rich list we can see that this isn’t the case, in fact, there are some 223 real estate billionaires sitting on the ‘triple comma’ list.
Top of the tree is China’s Hui Ka Yan with a property development fortune of $38.3bn.
Starting his working life in a steel foundry, the chairman of Evergrande Group began picking up low priced property bargains in his home town of Guangzhou and grew the business to become China’s largest property developer.
China and more specifically Hong Kong has become the hothouse for property billionaires with Hurun Global Real Estate Rich List reporting that 58% of the world’s richest being based in the country.
Property magnates aren’t just confined to China however as property still features massively in the UK Sunday Times Rich List.
As Robert Watts, compiler of the Rich List, says “At least one in six people on this year’s Sunday Times Rich List owes their wealth to property or the world of home ownership in some way. Savvy real estate investments are often where the rich transform themselves into super rich”.
Naturally, some of the wealth is inherited as is the case with the Duke of Westminster with his eye-popping £9.9bn fortune.
That having been said the Barclay brothers started out working in a fairly lowly position in the accounts department at General Electric and now have an estimated portfolio of £7.4bn which includes world-famous hotels including The Ritz and Claridges.
The super-rich look for property hotspots
It’s interesting to note that many of the worlds super rich gravitate towards property hotspots.
This phenomenon is something that we see across the world and is one of the key ways that people make good money from even seemingly poor property markets.
Looking at the rich lists can also be a little misleading though.
Many of the people listed as entrepreneurs in one particular area consolidate their growth by diversifying into property holdings too.
Alan Sugar is a case in point. The businessman, best known for his Amstrad computing business in fact also owns Amsprop, a company that holds properties that form the majority of his £800m fortune.
It’s notable that property still holds a massive interest for the worlds’ super-rich and it’s fair to say that many of them, as soon as they make money move quickly into property investment.
With great yields from capital growth and regular income, property is certainly the destination of choice for people looking to make the best returns on their investments.