We all have a story about the one that got away. Whether it was the 1BR downtown, we could have bought for $250k and sold later for $2.5M, or the $1,000 of Apple Stock that you could have purchased at $22 per share that would have been worth well over $1M today.
I have witnessed more wealth generated by real estate transactions than by any other investment source or profession. I’ve had clients who have been teachers, jazz musicians, and social workers who have managed to amass great wealth by making the right real estate investment decisions and, luckily, timed the market well.
I’ve observed that almost all of these people have significant real estate holdings as a part of their wealth and rarely sell any of them. These people know that real estate will always appreciate over time, and if you don’t have to sell a property, you never should.
History has shown that land ownership equals power. He who controls the land, well, ... controls the land.
As the holder of the Duchy of Lancaster, King Charles III owns a 45,000-acre estate, roughly the size of Washington, D.C. Each sovereign monarch has held this estate since 1399. The property generates millions of dollars a year in rental income. And, as most landlords have done recently, he raised rents. Also, since he is an individual holder, he has the privilege of not paying corporation taxes like most businesses in Britain. King Charles should earn about $34.5M from the Duchy this year alone.
The difficulty for so many people to afford a home has forced most people to rent, pushing up rental prices as inventory remains low. This situation also tightens the sales market, so most people lucky to own a home aren’t interested in selling.
As residential real estate agents, we usually work with clients purchasing and selling a primary residence or a vacation home. Still, one of our most valuable contributions is often underutilized. We know where the deals are for rental investment properties. Investors assume that investment transactions are best conducted by commercial brokers, which they generally are. Still, they aren’t often the most knowledgeable about where the most lucrative residential opportunities lie. The best person to assist in that is a residential agent.
As always, I advise everyone to invest in residential real estate when possible. And if you have the ability – do your best to hang on to it because one day, you or your heirs might be able to get a king’s ransom for it.
Let’s do this.
-Shaun