Posted on December 9, 2019
According to billionaire Andrew Carnegie, 90% of all millionaires get to that level of wealth through an investment in real estate. He also claimed that “more money has been made in real estate than in all industrial investments combined.”
It’s an incredible figure to get your head around, but at the same time, can be an incredibly accessible avenue for anyone to start building their wealth. Starting young, saving hard, and building up your investment portfolio one home at a time are the hottest tips Carnegie imparted. Who knows, before long you could be a millionaire yourself!
But is this kind of wealth still possible? And is real estate really the best way to get there? Well, according to ParkTrent Properties Group CEO Ron Cross, it certainly is.
Low risk, high return
Additionally, Cross said that unlike the stock market, where lots of things are out of your control and investments can drop or change overnight, an investment property isn’t going anywhere fast. Sure, neighbourhoods can change in value, but unless you sell at the wrong time or borrow too much equity out of your property, it’s hard to lose money from your real estate investment.
While we’re talking about borrowing money, real estate is an extremely bankable asset. That means you can leverage it to buy more investment properties and over time, build your wealth. When it comes to dealing with banks and loans, real estate is an incredibly favourable thing to have. Getting approval for a loan becomes much easier when you’ve got something valuable to borrow against. But the best thing about concepts like re-financing is that it’s not a taxable event. When you do a cash-out refinance – or extract some of the equity gained – this income is tax free and can be channelled into yet another investment property.
Always in style
The other thing with real estate is its relevance. Sometimes investments can be gimmicky, risky, or have little to no return on investment. But with property, the value is obvious. People will always need a place to live, meaning this kind of investment will go a long way and will always be in high demand.
Another little nugget Cross revealed was the value of real estate investment when you’re in it for the long haul. “This business is not a ‘get rich quick’ scheme,” he said. “But for the right person who’s willing to put time and energy into the investment, wait for the right time to sell, and capitalise on the opportunity, your wealth is as good as guaranteed.”
Cross added, “My advice would be to invest in residential properties that bring in rental income year-round if you want the best and most reliable return on investment.”
Nifty tricks to wealthy investment
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