WHY BUYING A HOME IS A GOOD IDEA
The Best Investment
As a fairly general rule, homes appreciate about four or five percent a year.
Some years will be more, some less.
The figure will vary from neighbourhood to neighbourhood. Ladner is not White Rock and Cloverdale is not Queensborough.
Five percent may not seem like that much at first.
Stocks, at times J, appreciate much more, and it appears you could easily earn over the same return with a very safe investment in treasury bills or bonds.
However, if you take a second look...
Presumably, if you bought a $200,000- condo, you did not pay cash for the home.
You got a mortgage, too. Suppose you put as much as twenty percent down - that would be an initial "investment" of $40,000-.
At an appreciation rate of 5% annually, a $200,000- home would increase in value $10,000- during the first year. That means you earned $10,000- with an investment of $40,000-. Your annual "return on investment" would be a fantastic 25%!
[You are making mortgage payments and paying property taxes.]
Your rate of return when buying a home is higher than most any other investment you could make.
Please call me anytime at 604-295-4091 for any of your Real Estate concerns.