If you can’t build wealth by buying property, how can you do it?

For the last few decades the American middle class has been building wealth by buying and selling property.

In your twenties you would buy an apartment and wait for its value to rise. After a few years the value of the apartment would have gone up and you would use the extra money to buy a small house. And so on.

Middle class professionals would use their salaries to pay the bills, and use their homes to build wealth and an asset.

But those days of building wealth with property are now over.

According to CNN, a recent Deutsche Bank analysis of the housing and mortgage markets estimates that 25 million borrowers, representing 48% of all Americans with mortgage loans, will plunge underwater before home prices are expected to stabilize some time in 2011.

"If our home-price forecast is correct, roughly one in two mortgage borrowers and one in three homeowners will owe more than their home is worth," said Karen Weaver, one of the researchers who authored the report. "That's a dramatic shift from the past several decades when housing was the foundation of middle class wealth."

Scary figures. Yes, housing was the foundation of middle class wealth. But not any more.

That’s one of the reasons I have been building wealth not through my home, but through my own websites.

If a website generates a reasonable income you can usually sell it, if you want, for two or three times its net annual revenues.

My CoffeeDetective.com website will make me about $50,000 in net revenues this year. So I could sell it for somewhere between $100,000 and $150,000. I won’t, but I could.

And that is just one of my sites.

I can’t think of a better, more reliable and safer way to build wealth at a time when buying property is no longer a viable wealth-building option.

If you want to build wealth for your own family in this way, learn more about my program, How to Write Your Own Money-Making Websites.

Comments

[mei]

Can’t state enough how important the sacrifices that go into wealth creation are.

Curious if anyone has caught this book yet? “The Richest Man in Town” by W Randall Jones. I’ve read half of it so far and let me tell you it is well worth it. Would like to hear what everyone else thought of it?

http://www.richestmanintown.com