How Billionaires Utilize Real Estate
Billionaires place a very high importance on real estate as it is one of their biggest investments. Whether it’s to take advantage of a spectacular deal to just having a place to call home, billionaires utilize real estate in ways that may not be so obvious.
Safe Investment
One of the most constant trends is that billionaires rarely purchase properties that offer a high risk/high reward option despite having the financial resources to absorb such a potential loss. If anything, the money they do spend in real estate is usually in safe investments such as in popular, growing cities such as Chicago, Miami, San Francisco and San Diego to name a few. Basically, preserving the money that is invested is the first order of business while creating more income is second.
Privacy
If there is one powerful reason that emphasizes how billionaires utilize real estate, it is creating privacy for themselves and their families. The mansions that they purchase may or may not be secluded, but they are walled offer or positioned too far away for the prying eyes of the paparazzi. However, billionaires have also been known to move into buildings that offer great security as well which offers some comforts. The home is the castle to the billionaire and protecting their privacy is a must.
Investing in Affordable Housing
You’ll find that several prominent billionaires have invested in affordable housing which is actually one of the safest types of investments on the market today. There is always a demand for affordable housing and these homes will often get purchased quickly. Often the purpose for their purchases is rather obvious if they run large businesses as their employees will need a place to call home. So, they buy up affordable homes so that they can be sold at a price that their employees can fit into their budgets. Warren Buffett said on a CNBC interview that he would buy up a couple hundred thousand single family homes if he had a good way to manage them.
Philanthropy
Billionaires are always looking for ways to help others and real estate can be a powerful tool in that regard. Usually, this takes the form of estate planning as their will tend to give away most of what they have earned to charitable causes. However, billionaires utilize real estate in other ways as well to pursue their goals of helping people around the world. by investing properly, they can use the profits to feed many people and help causes of which they have a great interest.
Creating Green Homes
Many billionaires feel protective of the environment so they go green. This means that they own houses that are environmentally sound and actually make for excellent investments as they use far less energy and are more substantial in construction.
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