just wanted to participate a bit in this discussion, it sound pretty interesting. regarding real estate investment. After experience and some research 51 per cent of Canadians and 55 per cent of baby boomers say they are relying on their home as one of their sources of retirement income. And, approximately half of non-retired Canadians believe their real estate assets will grow more in value than their other investments over the next ten years.
However, it could be a mistake to sit back comfortably on your equity because market history has shown that bricks and mortar are no substitute for stocks and bonds . In the most recent 10 year period for which statistics are available (1995 to 2005) residential real estate values have not increased as fast as the Toronto Stock Market (TSX). Over that period, real estate prices increased just over 5 per cent a year according to the Canadian Real Estate Association, while TSX returns averaged 11 per cent per year.
Anyway, look at your options , consult advisors, take several opinions to make smart decision. There's lot to know.
Also I wanted to add that the other key to a successful investment portfolio is: think long-term and stay the course. Study after study and years of investor experience have proven beyond a doubt that the best way to build portfolio value is time in the market, not timing the market. Hold your well-constructed portfolio for the long-term and rebalance it from time-to-time to achieve maximum value.
Real estate can be a valuable asset - but don't overvalue it as the source of your retirement income.
Have a good day guys