It’s no surprise that the real estate market has slowed as a result of repeated interest rate hikes by the Federal Reserve, but what’s surprising is that billionaires are now interested in buying real estate.
why? They don’t buy houses, he buys two forms of real estate: resorts and farms.
Urbanization is constantly putting pressure on America’s farmlands. The resort sector is generally centered around natural beauty such as clean beaches and mountain vistas.
This may be the reason behind investments in these sectors of the real estate industry.
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Oracle Corporation Founder Larry Ellison It reportedly spent more than $400 million on two resorts in California’s Lake Tahoe region.
Tilman FertittaThe owner of the Houston Rockets is said to be nearing a deal to buy a luxury resort in Laguna Beach, Calif., for around $650 million.
Additionally, Fertitta purchased a 6% investment. Wynn Resorts Limited in October.
Despite market analysts’ pessimistic forecasts, the Bureau of Labor Statistics released optimistic consumer price index data last month, revealing a fall in inflation to 7.7% from 8.2% year-on-year.
As a result, high-profile investments in the resort sector could bode well for future economic recovery.
A retail investor interested in exposure to this industry might consider parking in a rental property for as little as $100 to earn passive income and build wealth in the long term.
Investing in luxury resorts looks like a mess in the current economic climate, but not wealthy buying farms.
Agricultural land is one of the few asset groups that offers a stable valuation because it is both scarce and essential.
Over 240,000 acres of land, bill gates is now the largest single agricultural private owner in the U.S. Other Wealthy Individuals, Ted Turnerfounder of CNN, and Taylor Sheridanis the producer of successful series such as ‘Sons of Anarchy’ and ‘Yellowstone’ and has purchased hundreds of thousands of acres of land in recent years.
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