Many people assume that millionaires own multiple properties, but the reality is that the average American millionaire prefers to own just one (43%). Only 8.5% of American millionaires own four or more properties. Real estate is the most popular asset class for millionaires, with 90% of them becoming wealthy through investing in it. More money has been made in real estate than in all industrial investments combined, making it a wise choice for young people looking to invest their money. When it comes to foreign properties, Mexico is the most popular destination for high-net-worth clients, with 14% of them owning homes there.
Other tax-friendly locations such as the Bahamas (13%) and the Caribbean (9%) are also popular. England and France are also popular destinations, with 12% and 9% of millionaires owning homes there respectively. It's unclear whether these properties were purchased for pleasure, business or tax purposes. In addition to their own homes and investment properties, many millionaires (35%) invest in REITs such as Streitwise and Fundrise to diversify their real estate portfolios. Some estimates suggest that up to 90% of millionaires have achieved their wealth partly thanks to real estate investments.
Smart investors use refinancing with cash withdrawal to buy more properties with income and increase their wealth. Most millionaires exercise restraint when it comes to housing costs, buying a home much cheaper than they can afford so they can channel more of their income into investments. Real estate investment has helped the development of 90% of the world's millionaires, making it an essential part of any successful wealth-building strategy.