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Why Homeowners Build 43x More Wealth Than Renters (Teach Your Clients This!)

 

Hey guys, is it better to be a renter or a homeowner in today’s world? Especially with the rise of digital nomads and people wanting maximum flexibility—being able to live anywhere and work from anywhere.

There’s a strong attraction for that lifestyle, especially for Gen Z. Some in real estate worry: “Will Gen Z still buy homes like Gen X did?”

The reality is in the numbers, and we need to educate them.

Here’s a stark comparison: the average homeowner has 43 times the net worth of the average renter.

Average renter: ~$10,000 net worth

Average homeowner: ~$430,000 net worth

The reasons are many, but the number one factor is leverage.

Let me give you an example. The Wall Street Journal recently published an article comparing real estate to the stock market. They said if you had invested in the S&P 500 over the last 30 years instead of buying a house, you would have made more money.

That’s misleading, because they ignored leverage. Let’s break it down:

Imagine someone gives you $...

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The Best Hedge Against Stock Market Turmoil (Share This With Your Clients)

 

Hey guys, right now we have an incredible opportunity to talk to our clients. They’re nervous, frustrated, and anxious. What are they anxious about? They’re worried about the trade war, the stock market, their 401(k)s, their ability to retire on time, and even the possibility of losing their jobs.

There’s a lot of anxiety in the market right now.

You can sit back and hope everything gets better, or you can take action. Your game plan should be to reach out to everyone in your database this week—either with a call or a text. I prefer a call.

You can say, “Hey, I know you’re watching the stock market like I am, and you’re seeing all the turmoil with the trade war. How are you feeling about it? I’ve been talking to a lot of my clients, and some are thinking about diversifying their portfolios by investing in real estate. Real estate is a safe, stable, and secure investment. It went up 5.2% last year, and it has a baseline value. The baseline value is whatever you can rent the property ...

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