Home ownership is fantastic – it really is the American dream. But Andrew Van Dam over at the LA Times wrote a great that highlights the fact that owning your own home is NOT the key to increasing your net worth. Owning rentals and owning a business is the path to wealth.
I’ve owned a business, it’s a ton of work and you need to actively manage and grow the business. I prefer rentals. I just like getting the checks and cashing them.
Some highlights from the article:
- In the US, wealth is concentrated among business owners and landlords.
- They tend to be 4 times as wealthy as the average American.
- Renters make up the bottom 35% of households.
- The middle class is made up of those that only own their own home.
- Landlords and business owners make up the top 15%.
- Homeowners wealth hovers around the national average.
The middle class is disappearing. 90% are moving into the lower classes. 10% are increasing their net worth.
Where do you want to be 10 years from now?
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