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Reasons Why Houses Beat Stocks, Canadian Markets

Despite what Wall Street wants us to believe, owning a home isn't the same kind of investment as stocks & bonds.  What you get is a "usable" asset, keep the home in good repair to max out your take! 

Leverage:  With stocks you put in all your money for a little piece of a company and you have little control how they treat that company.   With a house, you put in a little money and get the whole house.

Tax Benefits:  If you make a profit on stocks, its taxable.  The profit on your principal residence on the other hand could be all yours.    

Peace of Mind:  Yes the Canadian real estate market can have it's ups and downs.   But if in a downturn, its usually gradual (and then regains) and I feel I have more control and can decide whether to downsize.  After last January, you realize how a single day can make all the difference in the stock market.   You can win in a day - but you can loose big just as quick.

Value:   Unlike a stock, your house will seldom become worthless.  Barring a catastrophe or you've completely rundown the house (but then there is still the land value) your home will retain a major portion of its value even in the worst of times.  Just look at the last 25 years, if you've owned a home, you probably don't have a mortgage and you are sitting on a wonderful tax free profit.

As for our American neighbours who have experienced some real estate ups and downs they have to get a little perspective. They probably lost a greater percentage on the stock market this year than if they owned a home.   They lost more on their SUV's.  And as a percentage, they sure lost more on their iPhones : )

Keep in mind, when it rains, which would you rather have over your head, a roof or a stock certificate. 

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Posted: Sunday, February 03, 2008 2:59 AM by Sutton Realty

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