Why Real Estate Owners Have a Higher Net Worth

On average, most people who own real estate have a higher net worth than their renter peers. So why is it that home owners and landlords have more wealth, even if it’s tied up in bricks?

The reason is inflation and the use of leverage in the form of a mortgage. Since real estate is appreciating roughly in pace with inflation, homes become more valuable while you put down a small percentage of the value of a home.

To get even, renters have to get raises that outpace inflation by 10-15X. That’s not going to happen. Own your real estate.

Read the full article here.

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