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Originally Posted by pepper24
Well said.
History shows that house prices tend to keep pace with inflation over long periods, but don’t usually produce huge profits. People think that since they made big money on their current home that went up over 50% in a few year in a bubble market that they are financial wizards.
Don't pay too much for a home and don’t borrow more than needed. One home to live in, maybe a recreational home for weekends/summers and a few REITs is all that the average person needs to have for real estate in their portfolio. Invest the rest in stocks, bonds, cash, RRSPs and other investments. It's financial suicide to have a majority of your money in an investment that'll barely beat inflation.
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Not only that, it's not very prudent to max out on buying a bunch of properties in only one real estate market. When you buy a REIT most of them will have a composition of many properties in many markets. You get diversification in the sector. Whereas if the region you're in tanks your entire finances tank if you're tied up in multiple properties in one market.