The number of high net-worth individuals in Australia, those who have a net-worth of $1 million or more, has grown rapidly in the country.
The Investment Trends 2013 High Net-Worth Investor (HNW) Report clearly states that the number of such individuals has increased in Australia by 8% – from 370,000 in 2012 to 400,000. If their assets are combined together, their net-worth easily passes the threshold of $1.4 trillion.
Moreover, these high-end investors have started to reinvest their cash reserves in real estate and gold big time. Let’s have a look at some of their investment habits.
Term Deposits and Stocks
The amount invested by high net-worth individuals in cash and term deposits went low in 2013. The drop was significant, from 20% to 16%. These individuals then allocated a bigger proportion of their assets into shares which showed an increase of 6% (from 26% to 32%).
Since 2008, a big chunk of high net-worth investors in Australia have been investing in different platforms for income, and only few have been running after capital gains. However, with time their appetite for capital growth is returning. Also, investing in global opportunities has also emerged as a trend among these individuals.
Their interest to invest in North American market has increased considerably. It has been reported that almost half of the high net-worth investors of Australia have some kind of international investment scheme. Most of these individuals have been investing heavily in the United States over the last several years. And the number is only predicted to increase by 8% within the coming years.
The Investable Amount
According to the Investment Trends survey there are about 2,459 high net-worth investors in Australia who collectively hold investable assets worth $8 billion. This stated number of individuals also includes 100 ultra high net-worth investors of the country that have more than $10 million to invest in various domestic and international platforms.
Investment in Gold
Gold remains to be one of the priorities of these high-end individuals of Australia to invest in. Gold never goes out of style and the fluctuations in gold prices hardly ever result in a decline in its value. Moreover, investment in gold and other precious metals like platinum not only increases your investment portfolio, but also does not get accounted for by the local banks and financial authorities.
Avenues like goldstackers.com.au/store have further made it convenient to invest in gold bullion and other precious metals.
Real Estate & Property
The richest people of Australia’s have invested their money into real estate and technology start-ups in order to multiply and maintain their wealth. As the number of HNWI continues to increase in the country more investments into the real estate are expected to flow in. Property investment funds like scinvestments.com.au have further facilitated the investing tendencies of these high ranking individuals in Australia.
The World Wealth Report’s 20th edition issued by Capgemini – a global leader in technology, consulting and outsourcing services – ranked Australia ninth in terms of the potential of the country’s global markets that are expected to grow by 2025. According to Phil Gomm, from Capgemini Australia, these very wealthy Australians are benefitting from excellent and perfect property prices even though their share market investments are quite weak.