At the summer ’23 KW conference, Gary Keller emphasized the significance of owning and investing in real estate over purchasing depreciating assets, such as the dream car. KW research showed that for every $50K in car debt at today’s rates, you are actually losing $200K in home purchasing power. Many younger potential buyers don’t know where they will settle down, so they justify buying a luxury car in the short term.
Research shows that real estate investments offer more substantial long-term buying power compared to luxury purchases. If you do not own real estate, it makes sense to consider investing, even if it is not for your own primary residence. You can remain nomadic while buying a property and renting it out until you figure out where you want to be in the long run.