Should I Invest In Real Estate?
Updated: Sep 25, 2021
Whether you are a first time buyer or own your existing house, homeownership is the single most important investment opportunity. According to the 2019 Survey of Consumer finances, the median homeowner has 40 times the household wealth of a renter. Homeowners are wealthier than renters at every income level. This is especially true for the lowest income group which has a median net worth of $102,500 compared to a renter who has $1500. In fact, the lower the income of a homeowner household, the greater the share of its wealth coming from homeownership which is around 75% of their total assets. For middle class households, property ownership represents 50-65% of their assets. If you are a middle class to high middle class family, half of your wealth for the future is tied to your real estate. So if real estate is such a great way to build wealth, then why are we not investing in it more? Most people just own one property which is their residence. This is the only real estate investment they understand. They do not go beyond this scope. So keep an eye out on my next couple of blogs on how you can increase your assets (or wealth) through different real estate transactions.