The richest people in the world have fortunes estimated at billion dollars, coming in 96% of real estate. Estimating that property prices have dropped at least 30% of the value of 2007, it follows that their assets fell to a few billion dollars.
Their great problem is now the severe shortage of cash. If they wanted to sell at this point probably there would not be any buyers, and to attract some they should seriously change the selling price. There are other rich people, whose fortune was assessed last year to a few billion dollars, and it consists largely of business run in the foreclosure market.
They planned that by 2015, to deliver thousands of housing units each year. They may own tens of yards in major cities, where, according to real estate experts, prices fell by 10% -15%. Where decreases were around 20%, tycoons own tens of land yards, some of which are located in the industrial areas.
Other winners in a world affected by foreclosure are able to control shareholders in companies. If their fortune was evaluated in 2007 at tens of millions, currently, due to market conditions, it was reduced to approximately the fifth part of the initial value. If they proposed to achieve operating income of hundreds of millions in 2008, during the first nine months, the figure had reached only one third of the estimated value. Market capitalization of some companies was, recently nine times less than that of the end of last year.
Some people’s fortune was estimated at a few billions. Land owned by them was never known, but they admit they had speculated in this area since the 1990s. It is possible that, in 2009, to witnesses, considering the growth of their assets, despite of the foreclosure crisis, especially that they may be among the few holders of cash.
They can begin construction projects, which will include new headquarters of different companies and will have offices on areas of over ten thousand square feet, retail and housing on areas of over hundred thousand square meters. Taking into account that housing market falls, their loss might be around 1-2 million.
With fortunes estimated at hundred millions in 2007, businesspersons say that they are poorer now because of the market blockage. They had the construction plan of new office buildings with multiple floors, in popular areas in big cities, but work was stopped. Rich people’s assets situation is not very happy.
They say they will lay off employees in several areas, except the hotel industry that for now is not affected by the foreclosure crisis. With estimated fortunes of billions, their business is mainly based on real estate. They carry out projects worth hundreds of millions, expected to rise by 2010 to other hundreds of millions, even billions.
As you can see, there are many contradictory ideas in the rich men’s world. The path in their professional life is not smooth at all, but if they choose the hard way, they must go on facing any challenge that can test their foreclosure survival skills.
Karen Anne, has been working on RealEstateForeclosureBlog.com studying the foreclosures market, helping buyers on the finer points of foreclosure homes.