Why Real Estate Is Still One of The Best Investments for Canadians
Owning real estate still remains one of the largest investment for Canadians. Investing in real estate has been attractive for Canadians due to its uniqueness and ability to diversify an investment portfolio.
In real estate, a short-term drop in value is not the same as a short term drop in a stock or bond. Houses are bought and sold regularly which helps in decreasing the risk of a price drop causing an actual real loss over time. Investing in purchasing a home is a differentiated investment by its ability to be a tangible asset and its intrinsic value.
Real Estate can be used to generate monthly income through rentals. Rentals can be for the full home such as an investment property or even just a portion of the home. A purchase of a home also results in usable equity in the future for potentially a personal loan, refinancing of your home, or even a line of credit.
Appreciation is another valuable aspect of investing into real estate; This is how the majority of wealth is earned. While in the short-term prices will fluctuate, real estate prices are known to generally go up. When investing correctly, you can purchase real estate and improve its value to better your financial position in the long run.
Greene, D. (November 27, 2018). Why Real Estate Builds Wealth Mort Consistently Than Other Asset Classes. Retrieved from: https://www.forbes.com/sites/davidgreene/2018/11/27/why-real-estate-builds-wealth-more-consistently-than-other-asset-classes/?sh=bab4ead54056
Jackson, D. (May 29, 2020). Why Housing Is Still The Best investment For Most Canadians. Retrieved from: https://www.bnnbloomberg.ca/why-housing-is-still-the-best-investment-for-most-canadians-1.1442476