RE:GentlemenGreat posts, but just a quick question for all: would you still see an investment in a home at current levels a safe bet? I personally am hoping for a correction, but canadians have been waiting for years for this. I won't hold my breath, and therefore I'm leaning more into the stock market before considering a home. I've been trying to buy a home to rent/reno outside the GTA (stratford, Kawarthas, to name a few) for the last 3 months, and the avg prices now are at least 100-200k from what they were in early 2020. If things correct back to precovid levels, that's at least a 100k loss. Not worth it when stocks like ENB and SU have yet to recover
marketsense wrote: If I may chime in, I live in the Vancouver suburbs(Port Moody) and I can certainly attest to
the insane rise in real estate here. It has by far outperformed my stock portfolio with a lot
less risk. Average price of a home is well over $1.2M these days and climbing again.
While there are many factors that have fueled the rise, low int rates being the biggest.
there is also the mild west coast climate, the ocean and the mountains that attract all
kinds of people here.
That said, the influx of Asians from Hong Kong, has driven prices to astronomical levels
and unfortunately has priced many young and even slightly older folks right out of the
market. I was one of the lucky people who had bought in well before all this phenomen
happened and have benefited greatly from it however I do see the negative side of it.
Vancouver real estate was never cheap in terms of income affordability but now that's
practically history with the exception of the ultralow rate environment that makes it still
somewhat possible.
Given this backdrop, had I bought two properties back in the day instead of one and rented
out the second, the numbers speak for themselves. I've made money and lost money
because of the volatility and my own naaivity in the market but compared to those same $
invested in real estate, there is no comparison. If I had it to do over again, I would have
never touched the stock market and simply focused on real estate. Looking back I was
attracted to the market because I thought it was easier and faster. Easier because of the
liquidity and faster because I was looking at stocks that for whatever reasons were going up
mutilples of what housing prices would do over a given year. Bottom line, stocks seemed
more exciting and fun, versus slow and boring. Now that I am an older guy, I still like
stocks especially for income and a bit of excitement once in a while but I have no problem
in admitting, I have regrets.
Lastly, nice to read this board without the annoying childish nonsense that has at times
monopolized the conversation. Great posts guys.