I hope you’ve been having a great summer!
There was an article published in the Financial Post at the end of June that caught my attention and has been on my mind, titled “Is real estate really the best place to park your money? A hard look at the numbers “. It was the most-read article on the Financial Post website for several days, meaning much of Canada just took some pretty important advice from this article. If interested, take a few minutes to read and digest it. The author attempts to factor in many important aspects in coming to the conclusion that “S&P 500 returns demolished Canadian housing performance”, citing a 2.4% annualized return in housing versus a 6% annualized return in the S&P 500 since 1980.
With all the factors the author brings in for consideration, it seems that the analysis provided is fairly complete and reliable. But the author failed to take into account some of the most important concepts when it comes to real estate investment. Comparing investment types without factoring in leverage, true capital outlay, hold periods, and tax treatment can lead to misleading conclusions.
Real estate is a hard asset that serves multiple human needs at the same time as providing a relatively safe place to put your money. It can be monetized via rentals if selling conditions aren’t ideal. With the right decision-making on product and entry/exit points, historically, it can be a very strong investment class.
Bottom line: each investment decision should be analyzed in its full financial context, drawing on the expertise of a range of specialists to inform decision-making.
In Squamish, there was 41 sales in July, which is just below the 5-year average of 46 July sales. Of these sales, 34 sold for under the asking price, 2 sold for asking, and 5 sold for over asking.
In Whistler, there was 31 sales in July, which is below the 5-year average of 52 July sales. Of these sales, 28 went for under the asking price and 3 went for the asking price.
Get in touch anytime if you need more data or a sounding board, I’m always happy to help.
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Lindsay
604-612-1484
lindsay@lindsaymcivorrealestate.com
Follow me on Instagram @squamish_whistler_real_estate