About a decade ago you could purchase a sixplex in Verdun for about $120,000. That's $20,000 a door. An equivalent nowadays might cost $480,000. That's a fourfold increase and that's roughly the same for just about any property in Montreal.
So those who invested in property at the start of this cycle profited.
And that other way to park one's wealth...ie: the stock market, the TSX was just floating around just under 12,000 in 2000. Now? Just under 12,000.
So why has property quadrupled while stocks have stayed stagnant for a decade?
Maybe a reader could offer an explanation.
But the real issue: if investors had chosen to park their money in the stock market rather than in property, rents would be cheaper and people would have much lower mortgage payments, in other words, Montrealers would had had a ton more money to blow on enjoyable things in their lives. Stores, restaurants, shoe shops, all would have prospered.
Our cost of living would have been massively lower had people simply invested in the market rather than in the land.
So those who invested in property at the start of this cycle profited.
And that other way to park one's wealth...ie: the stock market, the TSX was just floating around just under 12,000 in 2000. Now? Just under 12,000.
So why has property quadrupled while stocks have stayed stagnant for a decade?
Maybe a reader could offer an explanation.
But the real issue: if investors had chosen to park their money in the stock market rather than in property, rents would be cheaper and people would have much lower mortgage payments, in other words, Montrealers would had had a ton more money to blow on enjoyable things in their lives. Stores, restaurants, shoe shops, all would have prospered.
Our cost of living would have been massively lower had people simply invested in the market rather than in the land.
There are real estate agents who make a point of buying up all the properties in an area to drive the prices up by demand. I've heard about one in NDG and she can't be the only one. Lots of foreign investors in our real estate market too.
ReplyDeleteYou have just learned one of capitalism's fundamental laws.
ReplyDeleteKate M, good observation.
ReplyDeleteMostly it's boomers colluding/trying to make a quick buck so they can get that later Model BMW for the kid. And the real estate agents and banks aren't about to say no, as the higher the price, the higher the commissions, eh.