Financial Residency Financial Vitals - How to Use Real Estate to Build Wealth
Feb 9, 2024
Join financial planner Daniel Wrenne, founder of Renn Financial Planning, as he explores real estate investing beyond your primary home. He discusses the chaotic market, driven by high demand and limited supply, and explains how to build wealth through appreciation, rentals, or lending. Wrenne shares various ownership strategies, from passive REITs to active property management. He also highlights the importance of understanding your investment goals and urges listeners to track their progress while navigating the complexities of real estate.
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Primary Home Is Not Your Investment Engine
- Your primary residence is primarily a lifestyle choice, not the best vehicle for active wealth building.
- Home equity is real but often hard to realize as spendable wealth.
Supply And Demand Explain Price Surges
- Severe price moves are driven by classic supply and demand dynamics in housing.
- Low supply plus high demand naturally pushes prices higher through bidding pressure.
Why Demand Rose And Supply Fell
- Demand rose from millennials, COVID-driven relocations, vacation-home purchases, stimulus, and low rates.
- Supply shrank because cautious builders, high lumber costs, labor shortages, and restrictive local rules.