Compounding mishap a matter of interest in celebrating real-estate gains
Canadian PressPublished:
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.
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Last weeks Re/Max "BS claim" of a 11% annual increase did them more harm than good.
It is bringing out other articles clarifying that RE is not exactly the best investment.
Timing is everything. Buying at the top of this Bubble, many may have a depreciating investment.
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