Vancouver real estate is the new leader in investment returns.

Over the past 10 years, Vancouver real estate has proven to be a solid investment for investors. This last year’s profit from the market proved to be a better choice than gold and silver. Even with the turmoil in the market, the amazing numbers of the returns have not been released but the speculation is that there are big smiles on the faces of the investors. The average home in Metro Vancouver has returned at least 7.5% over the past ten years. The median home price was just $250,000, but last year it was nearly $660,000, according to a ReMax Housing report.

This has outperformed most commodities and gold in the Vancouver real estate space in the latter part of 2010. Real estate is a solid investment but only a long-term investment. High home prices across Canada are putting a dent in the longevity of these investments. The next few years will be a bit more difficult for investors to recoup their initial investment. Although initial investments may take more than five years to recover, investors should be a little more patient. In other parts of Canada, compound annual rates of return were 8% higher.

High prices in Vancouver and Metro Vancouver have affected sales and kept some investors from buying properties and getting capital from them. That hasn’t kept major players Vancouver from beating the national market average of 6.6 percent. The housing market overshadowed growth in disposable incomes, but the rate was above normal. Income growth in Canada is about a fourth of the national compound return. The future of Metro Vancouver real estate is uncertain due to offshore investments from China and other parts of Asia. The cash flow is definitely good for the short term, but buying from an outside investor is a little harder than getting a loan from a loan shark.

Unless there is a sudden change in the economy or other factors favorable to the real estate zone, most investments in the next few years will be difficult to swallow even a temporary label of “priceless”. That’s not to say that other places in Canada aren’t attractive or that the returns aren’t there. It will take some time for the issue to be resolved, but local investors are weary of the long journey ahead. The choice of residents is limited by the current conditions offered by the Canadian real estate market.

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