People have to have a place to live... Of course, real estate values are highly location dependent.Real estate, specifically rental properties. Hands down the best investment I’ve made. I’ve got 15 properties - townhomes and single family. All of them but 1 are less than 5 years old (l’ve been doing 1031’s to newer properties). I have about half paid off, the rest are leveraged. On paper - for taxes - they barely make any money. In the real world, I’m cash flow positive in the healthy six-figures. Appreciation has averaged around 4% annual, except for the last 2 years that have been over 10%. Rental income has grown steadily, especially the last 2 years. My ROI on most of the properties has been around 10%, not including the incredible tax benefits of real estate.
It’s not that hard to get started either. Find a decent property and put enough down to make it cash flow positive. Use the surplus to pay down the loan quickly. Or, invest the surplus until you have enough to buy another, and another, and another. I’ve used the equity in some of my properties to buy additional properties several times. And, with mortgage rates at 3% - even for investors - this is probably the best time ever to be leveraged in real estate.
I have money in the market w/ a Vanguard advisor. I’ve also dabbled with crypto the last 2 years. Neither have been as consistently good as real estate.
Your mileage may vary…
Having said that, owning Silicon Valley homes free and clear ain't a bad way to go...
I got into a beater house that was all I could afford in the mid 1990's. It was the worst house in a little town called Los Gatos...
I flat out love living here. Opportunity abounds, even for someone who has made every mistake in the book. Like me...