Real estate is one of the classic rags-to-riches stories and has been the source of wealth for some of the richest people on the planet. According to Forbes, 193 billionaires were created through real estate.
Andrew Carnegie was famously quoted saying that “90% of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined. The wise young man, [woman] or wage earner of today invests his money in real estate.”
You can read about many millionaires made from real estate.
Sam Zell, founder and chairman of Equity Group Investments, went from reselling Playboy magazines as a child in Chicago to managing student apartments and eventually creating some of the largest publicly traded real estate investment trusts (REITs) in the world. The real estate mogul built a fortune that is now worth $5.4 billion.
Living off of a $10,000 loan from his mother after being fired from Bear Stearns in 1972, Stephen Ross started organizing deals for wealthy investors to fund affordable housing developments – providing a tax shelter with generous incentives offered by the federal government. Ross founded The Related Companies and now has a net worth of $11.6 billion.
However, real estate isn’t just a means of climbing to the top. Most millionaires and billionaires allocate a significant portion of their portfolios to this asset class for its stability, cash flow and substantial tax benefits. Some notable billionaires are making their own unique plays in the real estate market.
Amazon.com founder Jeff Bezos invested in the innovative real estate startup Arrived Homes in 2021 during its seed round, then doubled down on that investment in the company’s series A round in 2022. The company acquires single-family rentals across the U.S., securitizes them, then allows retail investors to buy shares of individual properties for as little as $100.
The investment platform has already funded over 200 properties with a total value of more than $75 million and allowed tens of thousands of individual investors to become fractional landlords.
Elon Musk, CEO of Tesla Inc, Twitter and SpaceX, may be making his own play to get a piece of the residential real estate market by partnering with Lennar Corp. on building “Project Awesome,” a new residential area of 110 homes in Bastrop County, Texas, that could provide housing for employees of Musk-related companies
The initial deal with Lennar calls for 110 houses, but it could be just the first of several projects between Musk and the homebuilder.
In April 2021, Musk tweeted that more housing was needed in parts of Texas.
“Urgent need to build more housing in greater Austin area!” Musk tweeted.
Musk has created several jobs in Texas between SpaceX, Tesla and The Boring Company and it appears that he may be taking matters into his own hands to address the state’s housing shortage.
HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.
Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.
Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.
The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.
Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.
They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.
The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.
This report by The Canadian Press was first published Oct. 24, 2024.
Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.
Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.
Average residential home price in B.C.: $938,500
Average price in greater Vancouver (2024 year to date): $1,304,438
Average price in greater Victoria (2024 year to date): $979,103
Average price in the Okanagan (2024 year to date): $748,015
Average two-bedroom purpose-built rental in Vancouver: $2,181
Average two-bedroom purpose-built rental in Victoria: $1,839
Average two-bedroom purpose-built rental in Canada: $1,359
Rental vacancy rate in Vancouver: 0.9 per cent
How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent
This report by The Canadian Press was first published Oct. 17, 2024.
VANCOUVER – Voters along the south coast of British Columbia who have not cast their ballots yet will have to contend with heavy rain and high winds from an incoming atmospheric river weather system on election day.
Environment Canada says the weather system will bring prolonged heavy rain to Metro Vancouver, the Sunshine Coast, Fraser Valley, Howe Sound, Whistler and Vancouver Island starting Friday.
The agency says strong winds with gusts up to 80 kilometres an hour will also develop on Saturday — the day thousands are expected to go to the polls across B.C. — in parts of Vancouver Island and Metro Vancouver.
Wednesday was the last day for advance voting, which started on Oct. 10.
More than 180,000 voters cast their votes Wednesday — the most ever on an advance voting day in B.C., beating the record set just days earlier on Oct. 10 of more than 170,000 votes.
Environment Canada says voters in the area of the atmospheric river can expect around 70 millimetres of precipitation generally and up to 100 millimetres along the coastal mountains, while parts of Vancouver Island could see as much as 200 millimetres of rainfall for the weekend.
An atmospheric river system in November 2021 created severe flooding and landslides that at one point severed most rail links between Vancouver’s port and the rest of Canada while inundating communities in the Fraser Valley and B.C. Interior.
This report by The Canadian Press was first published Oct. 17, 2024.
