Real estate is the most powerful way to build wealth, and more people have become millionaires through real estate than any other means. Despite the obvious need to save for retirement, a recent Wall Street Journal article indicated that a startling 95% of Americans will face financial difficulties at retirement!
Of course, you have several options for your retirement and other savings, but most of these options pale in comparison to real estate. Consider options like savings accounts, CDs, bonds, and money market accounts. These are safe options, but you certainly won’t reach a goal of building significant wealth through these means. For the most part, these options will barely outpace inflation. Think of it. How many millionaires do you know who have become wealthy by investing in savings accounts? The stock market can bring you some interesting returns, but it can also lead to some big losses. You have very little control over the companies you invest in, and there aren’t significant tax advantages to owning stock.
Historically, real estate has provided investors with a stronger return than other options. Consider the growth of the median price of a home from 1950 to 2007 (57 years):