Reasons to Invest in the Stock Market
Yes, Gold is sky rocketing and markets around the world seem to be in a free-fall following the S&P downgrading of US Treasury Bonds to AA. But is this a sound reason to bail? Of course not! We've all heard the adage over and over, 'Buy low - Sell high.' This is not a time to let emotions and fear ruin your wise investment choices over the years. I know I probably sound like your stick broker but really. Pause, breath and think about it. I'm not suggesting you do nothing but now is a great time to really get to understand your portfolio and the market. There are many companies that will not just survive this they will thrive in the future. But due to the panic mindset they are likely under valued - that means its a great time to buy!
I know a lot of this blog is dedicated to uncovering cheap places to live and the best places to live for an optimal lifestyle. But, we're not talking about living like a hermit. Living a frugal lifestyle is what the US government needs to learn and teach - we've heard the debate. Why is it even a debate? It's simply common sense - spend less - make more - save more.
Real Estate Investment Consultant
We asked around and one Real Estate Investment Consultant we spoke with said Vancouver Real Estate is still a good option for investors. It kind of flies in the face of buy low, sell high but this consultant made a pretty convincing argument. He said,
"If you're looking to uncover a sound, stable investment for the foreseeable future you may want to consider keeping Real Estate in your portfolio. One market I'm still quite bullish on is, Vancouver British Columbia. Over the past 10 years Vancouver Real Estate has been a favourable option for real estate investors. In fact the past year proved that the gains from the Vancouver market outpaced gold and silver.
Despite the turbulence in the real estate marketplace world wide Vancouver has enjoyed very impressive numbers. The average Vancouver property increased in value year after year for the past decade providing a consistent 7.5% annual return for investors. Just a few years ago the average Vancouver home was priced at $250,000 but in 2010 the purchase price was at $660,000 - source: 2010 ReMax Housing Report.
This performance far exceeded most commodities, even gold in the later part of 2010. Until the sub-prime crisis in the U.S. Real estate has always been known as a strong and stable investment for the long term. Rising prices for Canadian homes have proved the trend real and one anomaly is keeping the Vancouver Market especially buoyant - in Vancouver Real Estate circles they call it the next "China Wave". Chinese buyers from mainland China this time are arriving flush with cash and ready to buy with no negotiation, no conditions and fast closings.
Many keep saying the coming years may prove to be more difficult for investors to recover their initial investments quickly but so far there is no sign a a slow down. However, it's always wise and our intrepid Real Estate Investment Consultant agrees, Investors need to be patient, and might see their initial investments taking greater than five years to recover. Although Vancouver appears to be the major boom town other real estate markets in Canada tare also returning compound annual rates as high as 8%. So, even if you are looking at Retirement Planning the window for a positive return is still short enough to consider real estate.
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