Teranet Home Index Historical Chart
RRSP time is over so lets look at the true returns on investment in real estate.
No other investment has been as consistent. The attached Teranet Home Index shows the returns on real estate investment in Canada based on comparisons of the same properties sold over time.
Yes, real estate can have its ups and downs, and yes real estate bubbles can occur, but what this chart shows clearly is, despite the potential for up and down trends over time, the best real estate holds and increases in value.
The Teranet Home Index was established to take out the obstructive trend issues caused by homes of higher value that are being built and sold each year, thus causing an up trending market average. As well, it also addresses the more recent addition of condos to our market place which again can distort prices and values.
This index compares only the same home sold at different times. Although there may be subtle differences in the property such as depreciation or maintenance issues or even capital improvements, it still has a telling trend line that cannot be ignored.
So check out this useful tool which shows the solid investment that real estate has been for generations.
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