![]() Interest is using a 25-year amortization, with a rate of 2%. The only deductions made are for interest, and property taxes. This means we’re factoring in the “benefits” of leverage, as opposed to an all cash purchase. Fun already, eh? Just a quick overview to avoid some questions later.įor the real estate nerds, we’re using the return on the downpayment for a benchmark home. However, then you’d also have to add in the cost of high-ratio mortgage insurance for those two cities. For Toronto and the aggregate home price, the minimum downpayment can be smaller than the one used. The amount chosen is the minimum downpayment for a benchmark home in Vancouver. This is just a comparison of how $200,000 would have performed over the past year in various investments. About the Returnsįirst of all, this isn’t investment advice, and historic returns aren’t indicative of future returns. Here’s how a downpayment would have performed in some assets that have drummed up a lot of media coverage lately. So, out of morbid curiosity, I ran the numbers on Canadian real estate compared to other places Millennials parked cash, over the past year. Real estate is just the only investment many Canadians understand. It’s not just real estate that is profitable. ![]() ![]() When central banks flood the market with cheap money, almost everything soars. Canadians are scrambling to buy a home and catch that huge wage of profits… but is it really that profitable? It depends what you’re comparing it to. ![]()
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