The Best Way To Build Wealth Depends On Your Own Real Estate Goals

We have all heard it before: real estate is one of today’s best wealth-building strategies, if not the best way to build wealth. And while you could certainly argue whether or not real estate belongs at the very top of everyones list, there is absolutely no reason to believe it doesn’t warrant consideration for the best wealth-building strategy of all time. Mind you, a little due diligence, some forward thinking, and some hard work can go a long way in the housing sector. Today’s best investors know it, and perhaps it’s time you started taking some notes of your own.

2016 saw home flipping increase three percent to a 10-year high. In other words, more investors flipped homes last year than in any other year following the Great Recession. According to RealtyTrac, 193,009 single-family homes and condos were flipped over the course of last year, “up 3.1 percent from 2015 to the highest level since 2006, when 276,067 single family homes and condos were flipped.”

Not only did 2016 usher in a new era for home flipping activity, but it also saw an encouraging rise in the resulting profits for those contributing to the trend.

“Homes flipped in 2016 sold for a median price of $189,900, a gross flipping profit of $62,624 above the median purchase price of $127,276 and representing a gross flipping return on investment (ROI) of 49.2 percent,” said RealtyTrac.

For my money, the best way to build wealth is through real estate, and you better believe those that realized the average return on investment in 2016 share my same sentiment. While data for the first quarter of this year has yet to be released, there is nothing to suggest the trend won’t continue. With the housing market currently firing on all cylinders, I see no reason to believe real estate won’t remain the best way to build wealth in 2017.

It’s worth noting, however, that the best way to build wealth isn’t based solely on the industry or wealth-building vehicle you choose, but rather what you hope to accomplish. If for nothing else, you can’t gauge whether or not your wealth-building attempts have been met with any degree of success unless you know what you want to achieve in the first place. Having said that, the best way to build wealth depends on your goals. Coincidentally, real estate happens to be one of the best ways to meet those goals.