Real Estate as an Alternative Investment Opportunity
Friday Aug 28th, 2020
Real Estate an appealing alternative to volatile stock market
In today’s times of economic uncertainty, roller-coaster TSX performance, and rock-bottom interest rates, many Canadians are turning to real estate as an investment alternative. Not surprising, when you consider that historically, real estate has proven to be a sound long-term investment. However, bear in mind that the operative phrase here is long term. Real estate builds value over time. It’s not an investment to be flipped in and out of from week to week, as you might in the stock market. Once you understand that, you’ll see that real estate can be a very a good investment for many different reasons.
As residents of one of the most heavily taxed nations on the planet, Canadians – particularly those who live in even more highly-taxed Ontario -- have few opportunities to grow their personal wealth without the increase being subject to Income or Capital Gains Taxes. The appreciation of the value on a principal residence is one of the very few avenues still available to Canadian consumers that is typically not subject to tax. Stock portfolios would be hard-pressed to generate a net return that could match the tax-free growth in home equity.
Let’s not forget that real estate also offers the opportunity to generate income – and it’s flexible since you can do that in a number of ways and over a time frame that suits you. Homeowners have the option to rent all or part of a property for a certain length of time to help pay off their mortgage. There are very few investment options that can help pay for themselves!
Finally, there are the additional benefits that it’s hard to put a price tag on. With real estate you get to enjoy the freedom and pride of ownership that comes with living in your own home. That’s something you’d never say about stocks, bonds or mutual funds. So why not talk to your Coldwell Banker® real estate professional, and find out how to make an investment that you and your family can live in and enjoy for many years to come.