Do you need real estate to build wealth?
It's a respectably debatable question.
The first question everyone should ask is, "What does wealth look like to me?"
For some, wealth equates to freedom, having six or seven figures in the bank, or having enough to cover bills, expenses, and some.
What does wealth look like for you?
Define this to help you create your financial roadmap.
Homebuyers
For some people who buy a home, it takes them 30 or more years to pay it off, and they never acquire more than one property.
By the time they do pay the house off, what do they have?
A paid-off house and money in retirement if they invested prudently. But for many, this is all they have, and the wealth they build is relatively similar to their fellow renters.
What is the point of being house-poor if you never have money?
Renters
What does the renter have?
It depends on what the renter does with their money.
If you're a renter and decide never to buy property, there are other definitive ways to build wealth, which could come via:
- Spending less than you earn.
- Investing in non-real estate ventures.
- Investing in digital real estate (REITs).