A few months ago we looked at real estate as an investment (Investing in Real Estate). Your principal residence is real estate, so is it also an investment? Is it a good investment from a return perspective?
Many Canadians are counting on their “home, sweet home” to help fund their retirement years, but it is also important to consider your investment portfolio: "Portfolio, sweet portfolio." Graphically, this is how your house stacks up against our country's stock market index: Real estate vs. Equities.
Finally, a family may own more than one home. On the sale of any of these properties, there can be a significant tax liability on the increase in the value of the home since the date of purchase, unless the principal residence exemption can be applied to eliminate or reduce the tax liability. Find out how the tax exemption works here: Principal residence.