Millennials are buying homes at lower rates than previous generations, but that might not be the worst thing for their investment portfolios.
That’s according to self-made millionaire and personal finance guru Ramit Sethi, who says that buying a house isn’t always the best investment you can make.
“What if you discovered that real estate isn’t as good of an investment as everybody says?” Sethi asks in an interview with CNBC Make It. Sethi is the author of “I Will Teach You to be Rich” and the founder of GrowthLab.com, an advice site for entrepreneurs.
While many first-time home buyers go into the process assuming that they can turn a tidy profit on any real estate purchase, Sethi says it’s not always so simple. In fact, there are a lot of obstacles and costs that can prevent your real estate purchase from being lucrative if you’re not careful.
“Most people never factor in all the phantom costs, including taxes [and] maintenance,” Sethi says. “They don’t factor in inflation and how that erodes the value of money over time.” READ MORE
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