If you thought Toronto real estate was the best way to get rich, you’d be wrong — stocks have done better

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Investors who bet on the equity version of real estate see massive returns

Getting in on the ground floor of Toronto’s housing boom has been seen as a sure-fire road to riches over the past decade. Buying stocks would have been a better bet.

It’s clear either of those investments have delivered a tidy return but there’s one group of investors who have done exponentially better: those who bet on the equity version of real estate. “You don’t have to worry about things like actual maintenance and keeping the property lease up,” said Jenny Ma, an analyst at BMO Capital Markets. “And also you get the diversification of many properties, across different markets and potentially across different asset types as well.”

Low FeesTo be sure, investing in Canada’s stock market has had its ups and downs with concerns surrounding global economic growth, the U.S.-China trade war and the boom of commodity prices.“Stocks likely have more short-term volatility than home prices, but home prices may be a bit more vulnerable to change in tastes, as well as prolonged periods of under-performance,” said Douglas Porter, chief economist at Bank of Montreal, adding real estate is clearly a less liquid market.

 

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If you're buying a home in SEMichgan, check out my listings at and reach me LeslieDRealtor

You can’t live in stocks, so after you account for that, real estate wins

Sold my house for a ridiculous amount and invested in a balanced diversified portfolio. Making 10.6 a month on average! Interest pays my monthly expenses !! Liquidity rules!

property will be there after the stock market drops from its artificially high point, right now.

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