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A few thoughts. I believe the study does not include leverage, which is much more common and safer in RE investing than stock market investing due to the lower volatility. If you borrow 75% of the money to buy a house, your returns are multiplied times 4. Most of my rental houses have returned over 20% CAGR for almost a decade, creating significantly more wealth than the S&P500 (which I also own). The second point is about liquidity. I find that the lack of liquidity in RE forces me to be a better investor, compared to the stock market where most people trade rather than invest. It’s not for everyone and takes more effort and skill than index funds, but it is a great next step for some.

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Building Arks with Jason Clendenen
Building Arks with Jason Clendenen

Written by Building Arks with Jason Clendenen

Self-taught investor helping busy professionals learn how to ignore mainstream advice and build real wealth. https://buildingarks.gumroad.com

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