Your banker will say that when it comes to growth, equities outdo real estate nowadays. Yes, he’s right. Even Warren Buffett agrees. But if you’ll zoom out to see the bigger picture, real estate has the best bang for the buck out of all the investment options this past hundred years. History never lies.
I’m a blue-collar worker. Real estate turned me into a blue-collar millionaire. Investing in real estate helped me to have more options and my wife to have complete freedom. My properties helped me to sleep better. All hell may break loose tomorrow at Wall Street - I have keys on my hands. Unlike stocks, my properties aren’t bubbles. They can poke my houses all they want; it won’t burst or pop. My tenants will always need a roof over their heads – more so during times of chaos.
Here in the US, entrepreneurs and landlords have five times more wealth than an average person. Having a business will shoot you high up on the wealth charts, but it’s real estate that will insulate you from the falls. That’s the reason why millionaires either own their businesses or have lots of properties. It’s not surprising that most billionaires own both.
That said, I’m not against owning stocks. It’s the most accessible way to build a passive income if you’re middle class. The stock market’s the middle game of wealth – you are safe (for now) and yet stuck. There’s also a big reason why the typical American won’t touch real estate. That’s because aside from taking a ton of time to get started, real estate investments are the slowest and hardest road to wealth.