Wealth, Real Estate, and the Great Wealth Transfer

Wealth and real estate have long gone hand in hand, and the present time is no exception. Andrew Carnegie famously said, “Ninety percent of millionaires become so through owning real estate.” Whether or not this exact figure holds true, there’s no denying the significant role real estate plays in wealth creation. In fact, the average high-net-worth individual today holds more than 25% of their wealth in personal and investment real estate.

Fast-forward to today: A recent article by Robert Frank at CNBC highlights the Great Wealth Transfer, citing a report by Cerulli Associates that forecasts a staggering $124 trillion to be transferred to heirs and charities over the next 23 years in the United States. Starting at $2.5 trillion annually, this transfer is expected to grow to more than $3 trillion annually by 2030—and increase from there.As a real estate guy—both an investor and a broker—this has me wondering: How will real estate factor into my own legacy? With such an enormous transfer of wealth on the horizon, it’s hard not to ask questions like:

• Where will real estate prices go?

• How will this wealth be stored?

• Where will it be spent—and by whom?

What about you? Are you planning to pass on or inherit real estate as part of this wealth transfer? If you’re planning to leave real estate to your heirs, is it property they’ll want to hold onto, or might they be interested in a different location? And if you have multiple children, do you have a plan for transferring your real estate in a way that’s fair and equitable?If these questions resonate, let’s talk. I’d love to be the real estate consultant on your team, helping you develop a strategy that meets your family’s unique needs and ensures your legacy is handled with care.