You might want to sit down for this.
Many people believe that real estate is one of the safest investments on the planet. They expect it to appreciate in value. Bought a house in 1980? By 2027, you'd expect it was worth more now. It certainly appears to be true.
Not many people understand that it isn't that your house is worth more. It's that the currency in which your house is valued is worth a lot less. This might come as a shock, or come up against a great deal of mental resistance or confusion. That's reasonable given the boloney so many of us have been fed about home or real estate in general ownership.
Does that mean investing in real estate is a fool's game? Not at all. In fact, it is a great way to preserve your wealth because the house, a real asset, has a good chance of keeping up with inflation. But buying real estate is not necessarily a means of acquiring or building wealth, especially for the Average Joe. Even if you rent out your property, the costs of upkeep go up year over year. To be building wealth, you need to be saving more and spending less to keep up.
You don't necessarily need to chance anything, but know the truth. Without the truth, you can't choose to do something differently.
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