Real estate is one of the few assets where you can use leverage — like a mortgage — to control a much larger asset than your initial investment. As the home’s value rises, your returns are amplified since the appreciation applies to the entire home value, not just your down payment.

For example, a 20% increase on a $400,000 home equals $80,000 in new equity — even though you may have only put $40,000 down. This multiplier effect makes mortgage-backed real estate one of the most consistent wealth-building vehicles over the long term.