The ongoing real estate versus equities debate, why you should sell Berkshire, and five charts that tell us where the markets are going next GlobeInvestor
Over the past five years, the Teranet-National Bank Housing Index increased 38.7 per cent and the S&P/TSX Composite Index climbed 30.6 per cent but the relative merits of real estate versus equity investment is a far more complicated question than these simple numbers tell.
Interest rates are the biggest swing factor in home valuation over shorter periods – low mortgage rates put significant upward pressure on real estate prices. It is unlikely that domestic rates will climb substantially in the near future, but Canadians planning for the long term should note that borrowing costs have been declining for 35 years – boosting home prices – and don’t have much room to decline.
The column deals with global and U.S. findings. Applying the same logic to Canada specifically carries important implications. The domestic equity market is commodity-heavy and lacks anything like the S&P 500’s degree of sector diversification. This makes Canadian equities far more volatile, and the odds of real estate outperforming equities in risk-adjusted terms is far higher than south of the border.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Tweaked days-on-market data paint a more accurate picture of Toronto real estateThe Toronto Real Estate Board rejigs the way it counts Days on Market – and adds an average 11 days
Read more »
Commercial Real Estate: Commercial property market stabilizingA lengthy period of runaway speculation in B.C.’s commercial property investment market has come to an end, with more modest economic fundamentals now driving purchases, according to Avison Y…
Read more »
B.C. introduces landowner transparency law to prevent money laundering, tax evasion in real estateB.C.'s Landowner Transparency Act creates country’s first public registry of property owners to deter crime in real estate
Read more »
Mortgage stress test is keeping Toronto home buyers on sidelines, says real estate boardSales flat in March, listings fall and prices edge up
Read more »
Province receives two money laundering reports after reviews of real estate, carsBoth come after concern expressed about B.C.’s reputation as a “haven” for money laundering
Read more »
'I AM NOT KIDDING': Donald Trump threatens to close border with Mexico next weekPALM BEACH, Fla. — President Donald Trump on Friday threatened to close America’s southern border or large sections of it next week, a potentially drastic step affecting the economies o…
Read more »
50 Cent sells opulent Connecticut mansion after 12 years on marketRapper 50 Cent's 50,000-square-foot mansion in Connecticut that first went on the market 12 years ago has finally sold at a fraction of the original asking price.
Read more »
Milton man, 43, charged after five women sexually assaulted on GO trainsA 43-year-old Milton man has been charged after five women were sexually assaulted while riding on Milton Line GO trains between June 2018 and February 2019.
Read more »
Lyft shares are going crazy in market debutUp 21% from its offering price
Read more »
The yield curve has inverted: Here’s why investors shouldn’t freak out and go to cashPeter Hodson: A recession. Really? Who cares? And as for your dividend stocks, get ready to see them boost your overall returns
Read more »