One of the most tried and true ways to build wealth is by investing in real estate. Real estate can be an effective investment to hedge inflation, provide tax benefits and pass down wealth to heirs. Having a rental property can provide monthly cash flow, and the home’s value may appreciate over time.
Rental properties aren’t a perfect solution, especially since real estate costs are skyrocketing. Some alternative, more affordable investments to rental properties include using short-term rentals sites like Airbnb Inc. (NASDAQ:ABNB), real estate investment trusts (REITs), renting out vehicles or tiny homes and selling call options.
