Landlords grow rich in their sleep. – John Stuart Mill
The above quote is insightful and should wake up most people who compare real estate to other investments. If you are a seasoned investor, when you come across the quote above for the first time, it hits you hard. This is because you would have experienced already how difficult it is to multiply money. Of course, savvy investors do succeed but they can very rarely reach a stage ever where they can say that they can sleep peacefully and their investments would continue to grow in value and the income from those investments would go up steadily. However, with real estate, this has been done for decades by many upper-middle-class families where a significant portion of their retirement income, comes from steady rentals of a second property and they have no perception of risk of the capital value of the property going down. Given this context, if you consider yourself smart, do you not feel confident that you would be able to outperform both on growth in capital value as well as yield while sleeping peacefully at night?