Even with your own home, have you noticed that real estate prices have been a bit hectic? How do you build wealth with real estate? Not with your primary residence.
In this episode of the Finance For Physicians Podcast, Daniel Wrenne talks about real estate as an investment outside of your primary residence. You are building wealth with your home, but it is hard to realize that wealth.
- Real Estate Market Prices: Massive increases in short periods of time
- Crazy Market: What are the reasons? Nobody really knows underlying causes
- Supply and Demand: Low supply and high demand drives up real estate prices
- Why is demand high? People still want to buy or invest in real estate
- Why is supply low? Cautious builders, lumber costs, lack of skilled labor, rules
- Real Estate Investing – Alternative approaches to make money:
- Appreciation: Own property that increases in value
- Rent: Own property that is rented out to others to generate income
- Loan: Charge interest on money loaned for real estate deals
- Ways to Own Real Estate: Short- or long-term rentals, flips, multi-units, raw land
- Real Estate Responsibilities: Do you want to be an investor or more involved?
- Why people write/talk about real estate: Hype, interest, and money to be made
- Big Benefits: Diversify, passive income, tax shelters, and better returns
- Downsides: Time, dealing with people, risks, returns, complexity, and alternatives
- Purpose: Why do you want to invest in real estate and build a portfolio?