Don’t take it from us, take it from the Fortune magazine.
They published an article saying why buying real estate is causing the wealth gap problem.
Link to the article below:
The rich own stocks, the middle-class own homes. How betting it all on real estate is a wealth gap problem
Not saying if it is true or not, I believe you can judge it for yourself.
But let’s see the situation below.
Who Owns What?
The Rich: Owns stocks
The Middle: Owns homes
The Poor: Owns nothing
The Rich: Gets richer
The Middle: Gets squeezed
The Poor: Gets poorer
I don’t know about you, but from the situation above, I know I definitely want to be on the side of owning stocks.
Homes are great investments because of leverage (you borrowed $400k + your own $100k to buy a $500k home).
If the home appreciates by $50k and you sell it, you made a 50% return on your $100k investment.
If the home