Investment Iron Law XII: Prosperity Comes From Land Ownership#
Land possesses the characteristic of scarcity.
Why Real Estate Offers High Returns#
Real estate prices have a long-term upward trend. Numerous research institutions in Taiwan have shown that the average annual return on real estate investment in Taiwan is around 22% to 25% or more, the highest among all investment tools. According to reports, real estate prices in Taipei’s Songshan and Xinyi districts have increased by as much as nine times in 10 years, translating to an average annual return of about 23%.
The Rise of Land Prices: There’s a Reason
In the long run, there are three main reasons why real estate prices rise and offer high returns:
First, the supply of land is limited. Land is inherently scarce, and Taiwan, being an island, has limited land resources. With continuous development, the available land for construction is dwindling. Moreover, land cannot be imported, so the supply is decreasing rather than increasing, and this problem will become increasingly severe. Therefore, real estate prices are bound to increase year by year.
Second, demand continues to grow. Real estate can be generally divided into commercial and residential uses. Commercial real estate (such as shops and factories) can be considered a means of production. When a company’s profitability increases, it is willing to pay higher rent, which drives up the price of the property. As the company grows, its space requirements also increase annually.
For personal and family use, as the economy grows and incomes rise, the demand for living space and quality also increases. In the past, a family of seven, eight, or even more than ten people would be content to squeeze into a 70-100 square foot apartment. Now, with increased income, an average family of four needs a 130-165 square foot apartment or larger to be satisfied.
A survey released in May 1996 showed that the homeownership rate in Taiwan was as high as 80%, but most were mixed-use properties with generally poor living quality, especially in metropolitan areas where the proportion of privately owned parking spaces was low. Despite the shrinking family size and high housing prices, the average living space per household has increased. In 1995, the average living space per household was 109 square feet, an increase of 20 square feet compared to 1990. As we move towards an information-based society, activities like working from home, online shopping, and banking from home will increase, further raising the demand for higher quality living spaces. Perhaps in 10 years, a 330 square foot apartment will no longer be sufficient.
Third, inflation. Real estate not only satisfies the need for housing but also serves as a hedge against inflation. Inflation drives up the prices of tangible assets (like real estate) while devaluing intangible assets (like cash). The reason why real estate prices rise with inflation is simple: its costs, including land acquisition, building materials, and labor, are constantly increasing. These costs are inevitably reflected in the price of the property, and with sustained demand, real estate prices are bound to rise continuously.
Therefore, the faster a country’s corporate profits increase (higher economic growth rate) and the faster national income rises, the faster real estate rents and prices will increase in the long run. Short-term real estate prices may not rise in tandem, but in the long term, prices will naturally reflect demand, and the average return on investment will be considerable.
Can Real Estate Maintain High Returns in the Future?
Investors often question: “Real estate has indeed created many wealthy individuals in the past, but will it continue to rise in the future? The average annual return on real estate investment in the past was over 20%, mainly due to Taiwan’s rapid economic growth. Can Taiwan’s real estate maintain this high growth rate in the future?”
Taiwan’s economy has transitioned from a period of rapid growth to a more stable growth phase. The average annual economic growth rate has decreased from around 9% over a decade ago to around 6% in recent years. Although economic growth has slowed significantly compared to the past, Taiwan still ranks among the top 10 globally in terms of economic growth. This is advantageous for real estate investment.
Moreover, due to continuous population growth, Taiwan has a population density of 534 people per square kilometer, the second-highest in the world, making land even more valuable. The high savings rate among ordinary people and limited investment options mean that real estate and stocks are the primary investment channels for most. However, due to the volatility of stock prices, many prefer investing in real estate. The common belief is that leaving land or a house to the next generation provides a foundation for their future. Therefore, with limited supply and continuously increasing demand, real estate should still maintain a return rate of 15% to 20%. Furthermore, the government’s gradual relaxation of restrictions on foreign investment in Taiwan’s real estate market will further increase demand, leading to even better market performance.
Taiwan has experienced multiple cycles of economic growth and recession, and real estate prices have gone through periods of rapid increases and long-term consolidation. Many investors questioned whether Taiwan’s housing prices would continue to rise. Especially during periods of domestic and cross-strait instability, many believed that Taiwan’s real estate market would collapse, leading them to sell their properties. Now, they regret their decisions. Facts have proven that as long as demand continues to grow and exceeds supply, prices will inevitably rise. This is an undeniable economic law. The cycle of “prices rise for a long time, then consolidate, then rise again” will continue to occur.
In conclusion, whether in the past, present, or future, real estate remains an indispensable investment tool for individuals, families, and businesses.
The three secrets to real estate investment:
- Location, 2. Location, 3. Location.
Lee Shau Kee’s Real Estate Investment Strategy#
Hong Kong real estate tycoon Lee Shau Kee was ranked the richest Chinese in the world by Forbes magazine in 1996, with a net worth of US$12.7 billion, making him the fourth richest person globally. He ranked ahead of Taiwan’s richest man, Tsai Wan-lin, the fifth richest globally, and Li Ka-shing, the sixth richest and long-time wealthiest man in Hong Kong.
Lee Shau Kee is not well-known in Taiwan. Now 68 years old, he is the chairman of Henderson Land Development and Hong Kong and China Gas Company. His wealth primarily comes from Henderson Land, the second-largest listed company in Hong Kong in 1996, with a market capitalization of over NT$350 billion.
Acquiring and Redeveloping Old Buildings at Low Prices
After moving from Guangzhou to Hong Kong in 1948, Lee Shau Kee started in real estate sales, specializing in acquiring small plots of land, redeveloping them, and selling them using a then-novel sales method: “Stratified sales with ten-year installment payments.” This proved highly successful, making him famous. In 1976, he founded Henderson Land Development, focusing on real estate development, rebuilding old buildings, and developing small and medium-sized residential properties. By 1988, the company had expanded considerably, and Lee focused on real estate investment.
Lee Shau Kee’s unique skill lies in persuading owners of old buildings in bustling areas to sell their properties, acquiring them at low prices, demolishing them, and then rebuilding. Henderson Land’s vast land holdings also include farmland acquired from farmers in the early days and properties bought from overseas Chinese through advertisements in Chinese newspapers in the US and Canada.
He believes the best real estate investment strategy is to choose the right location, focusing on densely populated areas with convenient transportation. Whether it’s stratified sales or renting for personal use, such locations offer excellent returns on investment. He emphasizes that choosing an investment location requires the ability to turn one dollar into three.
Prosperity Comes From Land Ownership
After years of research, the author has found that today’s wealthy individuals primarily accumulate their wealth through three avenues: inheritance, entrepreneurship, or investment. Among those who achieve wealth through investment, a vast majority do so through real estate.
Indeed, most wealthy individuals have made their fortunes in real estate. In 1996, half of the world’s top ten richest individuals derived their wealth from land, including Hong Kong’s Lee Shau Kee, Li Ka-shing, Taiwan’s Tsai Wan-lin, Yoshiaki Tsutsumi of Japan’s Seibu Railway Group (ranked seventh globally), and Cheng Chou-ming (ranked tenth globally).
According to the 1996 Forbes Rich List, 179 individuals involved in real estate controlled approximately US$257.2 billion in wealth, accounting for 64% of the total wealth on the list. This demonstrates that “prosperity comes from land ownership” is a timeless principle. This phenomenon is most pronounced in Taiwan, Hong Kong, and Japan, where land is scarce and appreciation potential is high. Hong Kong’s top three richest individuals, Lee Shau Kee, Li Ka-shing, and Raymond Kwok of Sun Hung Kai Properties, all made their fortunes in real estate. Taiwan is no exception. Besides Tsai Wan-lin, prominent tycoons like Lin Rong-san, Lin Yu-lin, and Lin Hsieh-chen also built their empires on real estate. Most listed companies in Taiwan and Hong Kong are related to real estate. Even if their core business is not real estate, they have real estate investments. Companies like Yulon Motor, Shin Kong Life Insurance, Fubon Insurance, Chinatrust, and Yuanta Securities all derive significant income from real estate.
Tsai Wan-tsai, chairman of Fubon Group and one of Taiwan’s top ten richest individuals, primarily built his wealth through insurance, but stocks and real estate remain key investment tools. Tsai owns land in many bustling areas of Taipei, including a large plot near Nanyang Street, currently under development, and the newly opened Fubon Financial Center on Ren’ai Road, which he purchased in 1986 for over NT$1 billion. The 12,000 square foot property is now worth NT$4 billion. The 5,000 square foot Fubon Bank on Minsheng East Road, purchased in 1996 for NT$400,000 per ping (36 square feet), has now doubled in value. “Real estate makes money faster,” says Tsai Wan-tsai, who spends his free time looking for and buying land whenever he has the funds.
These examples demonstrate that for those seeking wealth through investment, real estate is an essential component of their portfolio, and should even be the primary focus. The success of financial management often depends on real estate ownership. Therefore, readers with sufficient funds should prioritize purchasing a home for personal use. Those with insufficient funds should consider leveraged investing to achieve homeownership and potentially higher returns. It’s worth reiterating: “Prosperity comes from land ownership.” Throughout history and across the globe, the vast majority of those who have achieved financial success have done so through real estate.
From many perspectives, real estate is a better investment than stocks. While stocks can be a good investment, their prices fluctuate significantly. Listed stocks are traded centrally on exchanges with transparent pricing, leading to daily ups and downs that can be nerve-wracking for investors, especially when prices drop immediately after purchase. Holding stocks requires enduring the shock of substantial price swings, bringing joy during rises and pain during falls. Unfortunately, stock prices inevitably fluctuate.
Some people experience pain regardless of whether prices rise or fall. During downturns, they regret their initial investment and don’t buy more at lower prices. During upturns, they regret not buying more initially. Their emotions are constantly affected by price movements. Real estate investment, on the other hand, doesn’t have these problems. Even if real estate prices fluctuate daily, it’s not readily apparent, allowing for a “buy and hold” strategy and enjoying the benefits of economic growth.
Land near mountains or at the edge of development will inevitably appreciate in value.
Tsai Wan-lin’s Secret to Real Estate Riches#
Tsai Wan-lin, Honorary Chairman of Cathay Life Insurance, is one of Taiwan’s richest individuals and among the top ten wealthiest globally, with a fortune of NT$180 billion. Despite his ordinary appearance and lack of exceptional academic credentials, how did Tsai Wan-lin build such a vast empire and create an extraordinary life? Where did his wealth come from? It’s widely known that he owns a “golden goose” company—Cathay Life Insurance—the largest listed company in Taiwan by market capitalization. With over NT$500 billion in available funds for investment in real estate, securities, and loans, Cathay Life’s assets have grown rapidly, allowing Tsai Wan-lin’s wealth to snowball.
Buy Land, Rent, Don’t Sell
Tsai Wan-lin’s secret to wealth lies in familiar investment tools: stocks and real estate. He keeps nearly 50% of the shares of his wealth-generating companies, Cathay Life Insurance and Cathay Real Estate Development, locked away, allowing them to appreciate naturally. Stocks have become his “real estate.” How did he turn actual real estate into a gold mine?
Tsai Wan-lin consistently invested his money in real estate and adopted a “buy-to-rent” strategy. Now in his 70s and semi-retired, he continues to look for and buy land, his lifelong passion. According to his third son, Tsai Chen-yu, Chairman of First Commercial Bank: “We mostly choose corner lots because they offer larger buildable areas and are lively. We moved to Ren’ai Road Section 4 in 1961. Back then, it was all shooting ranges and military factories, and there was no Fudan Bridge. Looking from Ximending, the East District was the edge of development.”
“In the past in Taiwan, land near mountains or at the edge of development would inevitably appreciate. Sure enough, in recent years, development has extended beyond the mountains to Xizhi and Nangang, so the suburban land we bought has now become prime real estate. Our land acquisition strategy has remained consistent over the years, and now our focus has shifted to Xizhi and Tucheng, buying large tracts of suburban land for gradual development.”
Elaborating on Tsai Wan-lin’s philosophy of leasing rather than selling real estate, he added: “Real estate is called ‘immovable property’ because you shouldn’t move it. If you sell in the short term, you’ll only make a 10% or 20% profit. Hold it for the long term, and after decades, it becomes many times its original value. Therefore, the highest level of real estate investment is renting, not buying and selling.” Tsai Chen-yu, who studied in Japan, cites Japanese century-old businesses as examples. He observed that the success of Mitsubishi Estate and Mitsui Fudosan lies in owning real estate and holding onto it. More than 65% of their operating income comes from rental income.
Because Tsai Wan-lin acquired his land at very low costs, he then had Cathay Real Estate Development develop it and lease it to Cathay Life Insurance, creating a stable stream of rental income and land appreciation. Cathay Life Insurance invests billions of dollars in buying and selling real estate annually. Since they buy much more than they sell, they now own over 180 buildings throughout Taiwan. In short, Tsai Wan-lin’s secret to wealth lies in holding onto real estate for the long term.
Real Estate and Stock Investment Strategies Are Similar
The strategies mentioned above for stock investment also apply to real estate investment. From an investment perspective, “buy anything, buy anytime, don’t sell” is also an excellent strategy for real estate.
“Buy anything” emphasizes that selecting investment targets isn’t as difficult as it seems. It’s not necessary to have predictive abilities or advanced analytical skills. Diversification is key. The impact of individual investments isn’t that significant, so buying anything can work. However, because real estate investments are larger, diversification is harder to achieve. Also, purchasing real estate often involves multiple considerations, limiting the applicability of this “buy anything” approach.
“Buy anytime” means investing in real estate whenever you have money, without waiting for the perfect timing, because you can never predict the market perfectly. For most people, “buy anytime” seems unrealistic given the high cost of real estate. Being able to buy one house in a lifetime is already considered a significant achievement. Real estate isn’t like stocks, which can be bought in smaller amounts anytime. However, don’t underestimate yourself. Invest small amounts in stocks regularly, and when you’ve saved enough, consider leveraged investment. By following the investment principles in this book, buying three or four houses in a lifetime is achievable.
“Don’t sell” is difficult to achieve with stocks, but easier with real estate because price fluctuations are less visible and less likely to influence decisions. Many “land rich” individuals became wealthy by adhering to this principle. Real estate is also known as “immovable property.” If you can adopt a mindset of “own the property, ignore the price,” buying and holding long-term will naturally yield high returns. Moreover, transaction costs for real estate are higher than for stocks, including taxes like land value increment tax, capital gains tax, and deed tax. If you use an agent, you’ll incur additional fees, making the overall transaction costs quite high.
For real estate investment, value investing, growth investing, and contrarian investing are even better strategies than “buy anything, buy anytime, don’t sell.” Value investing involves buying when the intrinsic value of the property exceeds its price. As mentioned earlier, value is difficult to measure precisely for real estate, relying on subjective judgment, though market trends can provide guidance. For instance, if real estate prices decline significantly, the intrinsic value likely exceeds the market price, creating a good buying opportunity.
Choosing the Right Location is Crucial
Contrarian investing in real estate means selecting locations that others are currently overlooking but have future growth potential. If these areas develop as anticipated, the initial low purchase price will generate substantial profits. Avoid buying when everyone else is rushing into the market, as prices are likely inflated. Conversely, when everyone believes prices will continue to fall and market activity is low, it might be the best time to invest.
Growth investing is perhaps the most important and easiest of the three strategies for real estate. The three secrets to real estate investment are location, location, location. The key is to consider the future growth potential of the location. Don’t choose the cheapest or currently best areas, but those with future development prospects.
How do you choose a good location? It requires some imagination. Real estate development is like a ripple effect from a stone thrown into a calm lake. Initially, development centers around the city center, but the surrounding areas become the fastest-growing and most promising investment targets. Growth investors can sell their properties in the city center at high prices and reinvest in cheaper outlying areas to enjoy significant future appreciation. In Taipei, the best investment location 20 years ago was Ximending. Now it’s the Eastern District, and future development will likely focus on suburban areas like Xizhi and Tucheng. Those looking to buy real estate should explore the outskirts, envisioning future development directions.
Buy Now, Hold Long-Term: The Best Strategy
Real estate is a cyclical industry with predictable price patterns. Short-term price fluctuations are inevitable, but in the long run, prices tend to rise. The characteristic pattern is a long period of rising prices followed by consolidation, then another period of rising prices. Real estate also exhibits a common market characteristic: the faster prices rise, the faster demand increases.
Historically, Taiwan’s real estate market cycles have lasted between three and nine years, averaging seven years. One characteristic of rising prices is a substantial increase of two to four times at the beginning of each cycle, followed by years of consolidation. Some hope to buy at the very beginning of a price increase, but no one can accurately predict the exact starting point. By the time you realize prices are rising, they’ve already increased substantially, and by the time you place an order, the price might be double or even more. Since no one can predict the start of a price increase, the smartest and best approach is to act promptly, buy property, and hold it long-term for substantial profits.
Generally, there are several signs of an impending price increase: rising stock prices, favorable government policies, and the central bank lowering interest rates to loosen monetary policy. Stock prices are a good predictor of economic activity. Rising stock prices increase available funds, which often fuels real estate price increases.
Real estate is a “locomotive” industry. To stimulate an economy, it’s essential to stimulate real estate prices. When the government injects capital into the market and lowers interest rates to boost the economy, it often presents an excellent opportunity to invest in both real estate and stocks.
The two secrets to land investment are “wait” and “endure.” The right time to develop can often take two decades.
Cheng Chou-ming’s Real Estate Investment Strategy#
Cheng Chou-ming, the richest man in the Philippines, has seen his wealth surge due to the recent boom in the Philippine real estate market. In 1996, Forbes estimated his net worth at US$7 billion, placing him among the world’s top ten richest individuals. His secret to success lies in stocks and real estate, and his investment strategy involves contrarian investing: buying the best assets at the lowest prices during times of low market confidence and holding them long-term.
Cheng Chou-ming owns land in Taiwan, the Philippines, mainland China, and Houston, Texas. His holdings include 32 plots of land in Taiwan totaling 135 acres and 362 plots in the Philippines exceeding 50,000 acres, where he is currently building skyscrapers. He also has a large-scale project on Fuga Island in the northern Philippines, a 250,000-acre island larger than Hong Kong by one-third, where he plans to build a free port with docks, an airport, and hotels.
Patience and Endurance Yield Hundredfold Returns
Cheng Chou-ming, a keen real estate investor, bought large tracts of land in the Philippines 20 years ago for NT$0.2 per ping, which has now appreciated to over NT$600. This is his philosophy of “endurance,” patiently waiting 20 years for a two- to three-thousandfold return. Cheng Chou-ming says: “There are four types of people in real estate development: land investors, land developers, constructors, and builders.”
“Land investment takes longer, so land investors generally make larger profits, while the latter three, with shorter investment horizons, earn smaller margins, often just making money from developing the land. Land investment requires initial capital and a keen eye for location selection. Entering the market at the right time allows you to acquire land cheaply.”
“Future purchases of new land and interest payments on existing land can be covered by selling a small portion of the existing holdings. For example, selling one plot of land for the Asiaworld Group currently covers the acquisition cost of all our land. So, with patience and endurance, future returns can be hundreds or even thousands of times the initial investment.”
In the early 1970s, Cheng Chou-ming acquired the current site of the Grand Hyatt Taipei on Nanjing East Road for a very low price. While others were selling their properties and preparing to emigrate, Cheng Chou-ming decisively purchased this overgrown and neglected land, which became his base for future development in Taiwan.
Cheng Chou-ming excels at recognizing that the worst of times offer the best opportunities. During the cross-strait crisis, which caused a plunge in real estate and stock prices, he quietly acquired large amounts of stock. He said: “At that time, many stock prices were very low, and some offered annual dividends of over 20%, higher than bank interest rates. Such stocks are rare globally. With long-term investment, even just collecting dividends is worthwhile. As long as you choose the right stocks and invest long-term, you’re bound to make a lot of money.”
The Importance of Brand in Real Estate Investment
Most people’s first real estate investment is a home for personal use, often buying pre-sale properties. There are three secrets to investing in a home: location, location, location.
Choosing a home should prioritize the environment. The story of Mencius’s mother moving three times highlights the importance of the surrounding environment, safety, and the quality of neighbors, all of which impact quality of life and children’s development. Transportation, amenities, and other factors should also be considered. When purchasing pre-sale properties, focus on the “brand.” Such investments carry high risks, so the developer’s reputation and financial health are paramount, followed by practicality and growth potential.
In the past, when average incomes were lower, people bought cars that simply ran, were affordable, and looked decent. As demand increased and economic conditions improved, attention shifted to details, and brand and quality became more important. Cars require maintenance and repairs. Choosing a random repair shop can be problematic, with mechanics unfamiliar with the car model and a lack of available parts. Therefore, buyers began to consider the after-sales service offered by the car manufacturer.
Similarly, people used to buy homes that were simply livable, affordable, and in a reasonably acceptable environment. With economic growth and rising incomes, people are more demanding of quality of life, and the concept of “brand” has become increasingly important in real estate. According to the Consumers’ Foundation in Taiwan, real estate litigation cases are rampant, and most cases end without resolution.
Many construction companies in Taiwan are “one-project companies,” dissolving after completing a single project. Therefore, after purchasing a property, if any issues arise (such as unclear property rights, substandard building materials, or discrepancies in area), buyers often have no recourse. Furthermore, problems with the internal structure of a house may not be apparent initially, surfacing only after some time, such as water leaks, wall cracks, or plumbing issues. By then, there might be no one to hold accountable, highlighting the importance of brand reputation.
Real estate investment is a major life decision. For a home, comfort is essential. Even if the purchase is for investment purposes, a “quality-guaranteed” property will be easier to sell and fetch a better price.
After-sales service is another crucial factor in real estate investment. Many construction companies disengage after handing over the property, leaving the management committee to the homeowners. Due to a lack of authority and resources, these committees often struggle to address issues, leading to dissatisfaction among residents.
Several reputable construction companies in Taiwan are now emphasizing community management and after-sales service. For instance, Taichung’s Sancai Construction, the company where the author currently works, entrusts community management to an affiliated company, integrating software and hardware services to create a safe and comfortable living environment. Sancai Construction also provides security, repairs, bill payment services, and housekeeping services.
Therefore, future real estate investors should consider not only location and environment but also the developer’s brand, quality, and after-sales service. Choosing a reputable company with quality assurance, good after-sales service, and effective management is crucial for successful real estate investment.
As long as you avoid buying during periods of rapidly rising prices, the risk of leveraged investment is relatively low.
Leveraged Investment in Real Estate#
The substantial investment required for real estate often deters potential investors. The fact that property prices often rise faster than wages further contributes to the increasing wealth gap. However, real estate investment is relatively low-risk as long as you avoid the frenzy of buying during periods of soaring prices. Real estate, being a tangible asset, is easy to mortgage. Coupled with its high long-term returns and less visible price volatility, it’s an ideal candidate for leveraged investment.
The Benefit of Spreading Out Payments
Home mortgages typically span 20 years, effectively spreading out the total cost of the property plus interest over two decades. For instance, purchasing a NT$5 million house with a 70% mortgage at a 9% interest rate over 20 years results in a monthly payment of NT$31,490.
Therefore, if you have NT$1.5 million in savings and can afford the monthly payments, you should consider buying a property. The government often provides preferential interest rates for first-time homebuyers to promote homeownership. Those without a house should take advantage of these programs.
Some argue that renting is more cost-effective than buying in Taiwan. A NT$5 million house might rent for only NT$20,000 per month, while buying requires a NT$1.5 million down payment and monthly mortgage payments exceeding NT$30,000. This argument usually arises during market downturns or periods of stagnation. However, it’s flawed because it ignores the long-term upward trend of real estate prices. Renting would indeed be better if prices remained constant, but they don’t. Given long-term price appreciation, buying is more cost-effective than renting, especially because leveraging magnifies returns, making real estate a high-yield investment. Many have become wealthy through real estate ownership. In short, if you can afford to buy, it’s better than renting, offering greater security and an excellent investment opportunity.
Mortgage Pressure is Manageable
Some are reluctant to take on a mortgage due to the perceived burden of monthly payments. Twenty years ago, NT$1 million could buy a 50+ ping luxury apartment in Taipei. A 70% mortgage at a 9% interest rate translated to monthly payments of over NT$4,000. Back then, a university graduate’s starting salary was around NT$8,000 to NT$10,000, making NT$4,000 a significant burden. However, 20 years later, with inflation, experience, and increased earning power, the average monthly salary should be above NT$50,000, making the same mortgage payment much less burdensome.
Therefore, young people investing in real estate with leverage shouldn’t be overly concerned about the initial mortgage pressure. While NT$30,000+ per month might seem daunting, future income growth will gradually ease the burden within five to ten years.
A manager at an American bank said: “The biggest problem with mortgages in the US is people defaulting on their loans. In Taiwan, the biggest problem is people paying off their mortgages early.”
Moderate mortgage pressure can be beneficial for financial management, promoting forced savings and reduced spending. As mentioned earlier, starting early with diligent saving and investing in high-yield assets like stocks and real estate lays a solid foundation for future financial success.
Therefore, young people with sufficient down payment and the ability to manage monthly payments should consider leveraged investment in a home. As long as borrowing is within reasonable limits, avoiding foreclosure, long-term leveraged investment in real estate is undoubtedly advantageous.