Mika
VIP Contributor
A lot of people will tell you that real estate is the safest investment. The reasons they give for their statement are: you save money on rents, you can make money by flipping your home, you can collect rents and build passive income, etc.
However, there is a dark truth about the real estate industry. Homes are actually not built so that people can live or make money (through rents or by reselling), homes are actually built so that the banks can make money.
Do you know who the big investors in the real estate industry are? That’s correct the banks! Banks invest in construction companies, housing development companies, and the housing market.
Do you know who makes the most money from real estate? You guessed right, banks make the most money. Banks invest in the housing market and earn a return on their investments. When people buy homes, they cannot pay in full, therefore, they will get a house loan from the banks. And banks make a lot of money from mortgages.
However, there is a dark truth about the real estate industry. Homes are actually not built so that people can live or make money (through rents or by reselling), homes are actually built so that the banks can make money.
Do you know who the big investors in the real estate industry are? That’s correct the banks! Banks invest in construction companies, housing development companies, and the housing market.
Do you know who makes the most money from real estate? You guessed right, banks make the most money. Banks invest in the housing market and earn a return on their investments. When people buy homes, they cannot pay in full, therefore, they will get a house loan from the banks. And banks make a lot of money from mortgages.