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By 2024, the homeowner's net worth from the real estate investment has dwarfed that of the renter's stock portfolio, primarily due to the leveraging capability inherent in real estate. Once the mortgage is paid off, a homeowner can significantly reduce their living expenses and effectively live rent-free, benefiting from appreciation in property value over time.
However, this high leverage comes with potential downsides, such as increased costs due to interest payments and maintenance. Nonetheless, many wealthy individuals recognize real estate as a compelling investment option precisely for this leverage phenomenon.