Quote:
Originally posted by Mike Oxlong@Jun 21 2005, 02:31 PM
No matter what you say about Real Estate it continues to rise. Sure there are valleys and times when values go down. However as a whole Real Estate continues to rise and will always continue to rise.
Shelter is one of man's basic needs. There will always be demand for housing and the land to build the housing on. That is why Real Estate continues to be a good investment and continues to go up.
Real Estate may go down in value but RAW Land very rarely ever does. It may plateau, but it generally picks up where it left off. It is a great investment.
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Yes, we have had this debate before and I've always conceded that real estate / land is a viable and potentially attractive investment vehicle to some people.
My issue is that when I read your posts you describe land and real estate as a unbeatable vehicle, better than stocks, trust units or any other form of equities, and that it's always destined to go higher. You're right, but you can say the same for stocks - take a look at a chart of TSX indices growth of $100 from 1920 and you'll see a similar rise, complete with the peaks and valleys you mention. The common factor to both real estate and equities is time horizon - over time, you will gain with both. However, they WILL also go down. The question becomes, is that time horizon compatible with your own needs? (ie will you need that money before it's had a chance to appreciate enough to even out the 'valleys' that will occur?). It's a matter of matching up the right type of investment with the time horizon of your financial needs. Real estate in it's overheated form might not be that for everyone.
Honestly, I'm not trying to crap on real estate as an investment or open up another lengthy debate on real estate. I'm just trying to show that it's not all roses. People are asking for advice here, and I think a balanced view is important.
Fotze: I think your best bet would be to find someone that is not from the retail side of the banking industry. That means someone in their actual financial planning group, not someone's who's job is to steer you into their bank's funds and other investments. Someone with a CFP (Certified Financial Planner) designation might be a good indication of that, and that you're not just dealing with a teller trying to meet their quota for the quarter. Mike Oxlong advice is good - personal referrals are sometimes the best. I would hope that any "planner" starts off with 'what are your financial goals' and go from there. If it's 'wanna make money now '- run.