While real estate has outperformed stocks time and time again, the gap is set to widen again. According to Goldman Sachs, the S&P 500 is projected to deliver annualized returns of just 3% over the next 10 years. This is far below its historical average and a sharp drop from the double digit annualized returns of the past decade. As the stock market outlook cools, real estate continues to offer a compelling path to wealth creation.
Real estate goes beyond simple appreciation. Unlike stocks, which rely solely on market performance, real estate provides four distinct avenues to grow your wealth: appreciation, cash flow, tax benefits, and principal buy down. These layered returns not only offer greater stability but also unlock compounding opportunities that make real estate a smarter, more versatile investment for building long-term wealth.