Real Estate or Index Funds – Which is the Better Way to Build Long-term Wealth?

There are many different reasons why you should invest in real estate over index funds. Real estate is one of the biggest wealth generators in the world as 90% of current millionaires have obtained their wealth primarily through investing in real estate. When we look at the price of homes, the media price of a home in 1970 was just $23,000. Fast forward to the end of 2021 and the media price for a home is now over $400,000. Investing in real estate also allows you to make money by renting out your land.

Key Takeaways:

  • Real estate can generate regular income through rents and can make use of leverage.
  • Index funds are passive investments that are very liquid and bring no legal liability.
  • Index funds have brought greater returns over the past 10 years, but real estate provides more control and direct ownership.

“The median price of a home in 1970 was around $23,000. But by the end of 2021, that figure has risen to $408,000. That’s an incredible 1,770% increase in 50 years. Few investments can match that performance.”

Read more: https://www.goodfinancialcents.com/real-estate-or-index-funds-which-is-the-better-way-to-build-long-term-wealth/