Compounding mishap a matter of interest in celebrating real-estate gains
Sunday, January 28, 2007
"So add "timing, timing, timing" to the old real-estate adage about investing in "location, location, location." In Toronto, after its exuberant 1980s bubble, the annualized 1989-2006 gain from $273,000 to $352,000 was just over one per cent. "
""The percentage increases that have occurred across the country over the past 25 years show that real estate is also a solid investment."
"Of course, even this assessment might need clarification for those who bought at the previous property-market peak in 1989."
"For example, someone who paid that year's Canada Mortgage and Housing Corp. estimated average price of $147,000 for a Canadian home, then watched its value plummet in the mid-'90s before reviving to the Re/Max estimated 2006 price of $277,000, would have a 17-year gain of 88 per cent - representing a compound annual growth rate of 3.8 per cent. " Full Article.