The coronavirus pandemic has created an unprecedented global recession and with it have come drastic drops in the property market. In some of the world’s most expensive cities, prices have dropped by as much as 20 to 30 percent. For those with access to funds, this could be a great opportunity to capitalize on a
The coronavirus pandemic has created an unprecedented global recession and with it have come drastic drops in the property market. In some of the world’s most expensive cities, prices have dropped by as much as 20 to 30 percent. For those with access to funds, this could be a great opportunity to capitalize on a market shift. But who are these people? And what strategies are they using? In this blog post, we take a look at how the world’s richest are taking advantage of the $1 trillion property market crash.
The global property market crash
The world’s richest people are getting richer while the global property market crash continues. The latest Knight Frank Wealth Report shows that the number of ultra-high-net-worth individuals (UHNWIs) – those with assets of $30 million or more – grew by 8.5% in 2016 to reach a record high of 193,490.
And it’s not just the very wealthy who are benefiting from the property market crash. The number of millionaires also increased last year, rising by 7.5% to 16.6 million. That’s despite the fact that house prices around the world fell by an average of 3%.
So what’s driving this growth in wealth? One factor is that many of the world’s richest people have their money invested in assets other than property, such as shares, bonds and cash. As a result, they’ve been able to weather the storm better than those who have all their eggs in one basket.
Another reason is that many of the world’s wealthiest individuals live in countries where economic growth is strong and property prices are still on the rise. In China, for example, UHNWIs grew by 18% last year and there are now more than double the number of millionaires than there were just five years ago.
So if you’re feeling anxious about the state of the property market, remember that not everyone is struggling. In fact, for some people, it’s business as usual – or even better than usual!
Who are the world’s richest people?
The world’s richest people are those who have the most money. In terms of actual wealth, the top 1% of households in the United States own about 40% of the country’s total wealth. The next 4% own another 30%. That means that just 5% of American households own 70% of all the wealth in the country.
Therichest people in the world are overwhelmingly white, male, and reside in North America and Europe. According to Forbes’ annual list of billionaires, there are 2,208 billionaires in the world as of March 2018. Of these, 1,226 (55%) are from North America and 565 (26%) are from Europe. Just 13 (0.6%) are from Africa and 36 (1.6%) are from Latin America and the Caribbean.
There is a growing concentration of wealth among the world’s richest people. The top 10% of households globally now own 85% of all wealth, while the bottom 50% hold just 1%. This trend is even more pronounced in developed countries like the United States, where the top 0.1% now control as much wealth as the bottom 90%.
In terms of income, the world’s richest people make up a small but increasingly important group. Globally, the top 1% earn about 20% of all income, up from 12% in 1980. In developed countries like the United States, Canada, and Australia, they earn even more: close to 30%.
How the world’s richest are capitalizing on the property market crash
The world’s richest are no strangers to making money from a market crash. In fact, many of them see it as an opportunity to make even more money.
There are a few ways that the world’s richest are capitalizing on the current property market crash. One way is by buying up properties that have been foreclosed on or are being sold at a discount. Another way is by investing in real estate investment trusts (REITs) or other real estate-related investments.
Some of the world’s richest people have made billions of dollars by taking advantage of market crashes. For example, Warren Buffettmade his fortune by investing in companies that were undervalued during the Great Depression.
If you have the resources, there are opportunities to make a lot of money from a market crash. However, it is important to remember that there is also a lot of risk involved. Before making any investments, be sure to do your research and understand all of the risks involved.
What does this mean for the future of the global economy?
The world’s richest people are no strangers to taking advantage of market crashes. In the wake of the 2008 financial crisis, they bought up property at bargain prices and rode the ensuing wave of economic growth to even greater riches.
Now, with another global economic crisis brewing, they are once again positioning themselves to profit from a potential market crash. This time, they are targeting the $1 trillion global property market.
The world’s richest investors are buying up properties at discounted prices and then selling them off for a profit when the market recovers. This strategy has already been successful in London and New York, and there is no reason to believe that it won’t work again in the current market.
So, what does this mean for the future of the global economy? It means that the world’s richest people will continue to get richer, while the rest of us will be left to pick up the pieces after another market crash.
In conclusion, it is clear that the world’s richest are taking advantage of the $1 trillion property market crash by investing in real estate. Although these investors may be benefiting from this situation, it is important to remember that there are also those who have been negatively affected by the downturn in property prices. It is vital that people think carefully and invest responsibly so they don’t fall victim to any financial repercussions caused by a market crash.