Most millionaires are created via real estate?

[bjl584]

Personally, I don't believe very much in real state even though we have bought a new house to be refurbished.
The federal reserve is rising rates so let's just wait for some months and we will see lots of families losing their homes.

Two separate things.

Your personal residence is different than investing in a rental property.
One produces cash flow, the other does not.

I'm not sure how a rise in interest rates would cause people to lose their homes unless they have a variable rate on their mortgage.
Rising rates might deter some people from buying or refinancing, but foreclosure is usually from overleveraging

[myrdale]

Your personal residence is different than investing in a rental property.
One produces cash flow, the other does not.

I'm not sure how a rise in interest rates would cause people to lose their homes unless they have a variable rate on their mortgage.
Rising rates might deter some people from buying or refinancing, but foreclosure is usually from overleveraging.

Your personal residence could also double as an investment property, if you're planning on selling it in the future.

I watched an interesting video yesterday about a new trend in building super skinny sky scrapper apartments in New York City. Billion dollar construction jobs, tens of millions or more per floor to buy. Some people are buying them as investments and never moving in. Its a strange situation.

I believe you are correct in the statement about the effects of interest rates on buying. I've never understood the appeal of the variable rate. Balloon mortgages make even less sense to me.

[LivingAlmostLarge]

I will say that the people i saw with the most wealth were those who started their own businesses. More than RE or stocks. Entreprenuers have always seem to be the most financially successful

[DanBond]

Perhaps half of the existing millionaires or billionaires got their fortune due to real estate. However, any person who owns real estate sites like http://the-continuum-thiam-siew.com/ is already a millionaire, since one house or apartment can be sold for good money. In real estate business you need to be well versed and understand how this market works in order to make your fortune on it. You also need initial capital to invest in this business, so it is not always necessary to buy apartments and rent them out, sometimes you can invest money in shares of real estate companies. And when your capital becomes large enough, then you can already think about buying property for renting it out.