The wealthy invest more dollars into residential real estate

NORWALK, Conn. – July 3, 2007 – The World Wealth Report from Merrill Lynch and CapGemini reveals an 8.3 percent increase in the number of individuals across the globe with more than $1 million in investable assets – minus their primary residences – to 9.5 million last year from 2005.

The report reveals real estate accounted for 24 percent of their investments in 2006, up more than 50 percent from the prior year. Of the amount invested in real estate, 49 percent was tied to vacation and second homes purchased with cash; in North America, homes accounted for 41 percent of the real estate investments made by the 3.2 million financial millionaires.

According to Institute for Luxury Home Marketing founder Laurie Moore-Moore, “North American vacation and second home sales are outperforming the market overall, and the number of trophy properties offered in the double and triple digit millions continues to grow both in the U.S. and abroad.”

Source: RisMedia.com (07/03/07)

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