How real estate wealth compares across generations | Entertainment News
Many financial professionals believe that a large portion of the portfolio should be invested in real estate as part of a comprehensive wealth creation plan when it comes to wealth creation and growth. Experts say that between 25% and 40% of your net assets should be in real estate, as this asset class allows investors to take advantage of real estate ownership – such as residual income, equity, and appreciation – while pursuing other investment and development methods.
Investing in real estate to build wealth is not a new concept. Owning real estate has always been a major contributor to wealth and can be traced back to before the War of Independence when real estate was a symbol of wealth and one of the most important ways for the wealthy to secure wealth. Not much has changed since then. Real estate investments remain a primary vehicle for generating wealth and growing wealth, a trend that is likely to continue for many generations to come. What will change, however, is how property wealth is compared across generations.
Real estate referral website UpNest recently surveyed household wealth by generation using Federal Reserve data dating back to 1989. These data compare real estate wealth between the silent generation (born before 1946), baby boomers (born between 1946 and 1964), Gen X (born between 1965 and 1980), and millennials (born between 1981 and 1996). The results were surprising. The intergenerational trends in property wealth evolve from year to year, as do fashion, music and culture. Check out the slides below to learn more about how real estate wealth has evolved over the generations over the past three decades.