The title pretty much sums it up.
I’m 17, soon to be 18. Over the last year I’ve put around $30k into traditional stock investments from an online venture I lead. All things considered, it’s been an exciting learning experience for me.
That said, the more I learn about the broader financial systems, the more I start to believe that real estate could be a better investment. I understand that real estate needs to be actively managed.
Real estate’s allure, for me, is mostly seen in its readily available potential for leverage. It’s super common to see 80% LTV financing on properties of all times.
Because of this, it’s my personal belief that real estate (with a tenant, of course) could be a better place to store my capital if I want to maximize long-term wealth creation. Real estate’s wealth creation exists primarily through the tenant (effectively) paying the mortgage and through the property’s appreciation (\~3% a year, but remember, it’s leveraged).
My dad also seems to be on the same page as me, and has even offered to invest in real estate projects I take on.
What do you all think? Am I missing something, or is it truly just an avenue to wealth creation that is often ignored in lieu of traditional investments?