Everyone Should Own a Piece of Real Estate

Let me be honest. I think everyone should own a piece of real estate one way or another. If you had to ask any financially wealthy individuals about what their investment portfolio consists of, you will likely find 2 kinds of assets: real estate and businesses, either direct ownership or indirect ownership through partnership units or shares. These wealthy individuals all understand one thing – owning real estate and/or businesses is the only way to wealth.

I love real estate. I think it’s the best asset you can own during your lifetime particularly because it is a finite resource just like water and food. Economics 101 tells us that when high demand for a particular asset meets with low supply, the value on that asset will inevitably increase. Real estate happens to be one of those assets that will always be in demand. Especially with today’s uncertainty in stock market and economy, real estate is again back to the spotlight as being secure and low risk investment, perfect for capital preservation and wealth creation.

Even the banks, our most conservative lending institutions, are willing to lend on real estate. Obviously, different kinds of real estate carry different levels of risks. Nevertheless, as the saying goes, “Who has the gold makes the rule”, I am always amazed and thankful that the particular niche we specialize in has been consistently viewed very favourably by the lenders. Who can beat the banks when it comes to risk mitigation!

Leverage and real estate go hand-in-hand. With a proper level of leverage and know-how, great wealth is created everyday.