UK’s super rich ‘pile in’ to US property sector
The UK’s super rich have switched their gaze to the US residential and commercial property market, according to family wealth adviser Stonehage Investment Partners.
John Veale, chief investment officer at Stonehage, said wealthy investors were “piling in” to the sector, in a move similar to the recent investment boom witnessed in the London property market.
He added that US residential property now accounts for between 8-10 per cent of a typical client’s portfolio, compared to a historical average closer to zero.
Mr Veale claimed many of his clients had achieved returns of 40 per cent in the sector during 2012, with a second client allocation this year expected to deliver 10-12 per cent a year, concentrating on residential mortgages from regional US banks and commercial properties in Las Vegas and Illinois.
He said that exposure to US property was now almost double that allocated to other alternative investments, such as gold or commodities.
Sam Instone, director of London-based AES International, said: “I would tend to agree that investors are now looking at overseas property as an opportunity for investment growth.
“We are finding that places such as Florida, in addition to countries such as Canada, South Africa and Bulgaria, have been particularly popular, offering attractive rental opportunities for clients and delivering income and growth.”