What Percentage of Millionaires Invest in Real Estate?
When Andrew Carnegie spoke, people listened. Carnegie is among the original industrialists who amassed great wealth. His wealth came from the booming steel business of the late 1800s and early 1900s. Nonetheless, he was aware that real estate also created wealth. According to Carnegie, 90% of millionaires reached that status by investing in real estate.
Millionaires invest in real estate because it creates wealth. If you purchase a property as your principal residence, it creates equity as you pay off the mortgage. Next, leverage the equity against the purchase of a second home. By renting out the second home, you create an income stream. For many, this venture is enough. Others take the project up a level.
For example, some investors accumulate a portfolio of properties. The portfolio provides several income streams. Another route is purchasing a multi-unit complex. Even if the complex only contains three or four units, that’s three to four income streams. Ideally, the rent pays off the mortgage associated with the property. The leftover amount after all expenses is your profit.
You can opt to reinvest the profit into the property or continue accumulating more until you reach millionaire status too.
Millionaires Invest in Real Estate Conclusion
If millionaires invest in real estate, others can try their hand at it too. The Australian housing market has provided an opportunity to several Australians. In 2018, the Australian Tax Office estimated that the country held two million investors. Our Mortgage House loan specialists offer several financial products for clients interested in real estate investing.