Two reasons real estate is a great investment that will go up in value over time
- There is a limit of supply and a lag time to push more supply into the market. That lag time frequently offers the best appreciation.
- A piece of real estate is an accumulation of commodities and the replacement cost of those commodities is going up. A house is nothing but a bundle of copper, wood, brick, labor, etc.
Remember, like any wealth storage vehicle, the rate of return will vary. Expect ups and downs. Don’t get greedy during the ups and don’t panic during the downs.
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