The survey of 83 high net worth real estate investors found that 35% have lowered their risk profile as a result of the current economic environment, with 20% now holding more in cash and 60% citing a preference to invest in lower risk/return first charge loan structures.
ASK’s recent annual survey shows high net worth investors retaining significant allocations to real estate but lowering their risk profile, and a preference for residential asset classes.
Daniel Austin, CEO and Co-founder of ASK commented,
"These are sophisticated investors who invest in ASK loans through our online platform and it is very positive that they are retaining a strong appetite for real estate despite the current economic climate, reflecting the solid fundamentals and long-term trends of the asset class. With interest rates now at 5% we expected to see investors lower their risk profile. Our self-select, online model allows investors to remain nimble in volatile times with the flexibility to increase their allocation to cash, select lower risk/return loan structures and their preferred asset class and location to suit their changing profile, putting them in a strong position to achieve risk-adjusted investment returns in a difficult market. I expect best in class wealth-tech platforms to become a dominant choice for sophisticated investors looking to react to the fluctuating economic environment.”
Read the full press release in The Intermediary here
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