Investment in Real Estate as One of the Things that Differentiate the Rich from The poor

In this article we are going to unfold some hiden reality of investment opportunity in  real estate. Real estate one of the things that Rich people invest in and the poor people do not. What makes a difference between the rich and the poor is not the amount of money they have, but because of their attitude in terms of: what they use their money to buy, the level of their knowledge and exposure and mentality.

Poor settle for salary, pension and pay cheque, while rich people use the little money they have to generate more money which can be in the form of investment in Real estate and forms of investments. One of the  limitations of salary work is that No matter how skilful or hardworking you are, you can never be promoted above the C.E.O. of the company in which you are working. 

Rich people invest in asset while poor people spend their money in liabilities.  We are going to examine some of those Assets.

List of Assets Rich people Invest in

  • 1.  Real estate
  • 2. Business or Enterprise
  • 3. Precious Metals
  • 4. Automobile
  • 5. Fan or Audience
  • 6. Knowledge and skill 

REAL ESTATE AS AN  INVESTMENT

When we talk about real estate, we mean landed properties, building etc. real estate has so many branches. We may not explain into details the various categories of real estate. But we are going to dwell on the attitude of the rich and the poor in relation to real estate

There are different types of building: Condo, Warehouse, worship centres, Residential, Hospital, Eatery, Banking hall, etc. 

When it comes to investment in real estate poor people rent houses at the expense of their investment. They never think of renting low or middle class accommodation, they spend millions of money paying rent year by year. At the end of the day when the rent expires and their job is no longer there, they are left with nothing.

On the other hand, Rich people invest their money in real estate. when you buy a piece of land, after some years the value of that land increases which is called appreciation. Rich people use real estate to save their money. I will explain this.

When you save your money in the bank after some years, that money depreciates in value due to inflation. Take for instance if you save $1000 in the bank this year, this year $1000 is a big money but in the next three years it becomes a small money because of inflation. Somebody will ask what about interest? The rate at which inflation occurs, the amount of interest added  cannot meet up. Therefore, in the next three years to come the $1000 becomes a small money.

On the other hand if you invest your money in real estate, since the value of real estate do not depreciate, rather it appreciates, therefore, the value of your money will appreciate with time, even though there is rise in inflation.

Most rich people save money in real estate. These are in form of build and sell or build and let lease.

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