First thought? A flawed comp, but many people talk about it, so why not.
The investment performance of real estate vs the stock market (or vs any other asset class for that matter), is a discussion I have had in meetings, at dinner gatherings, on vacation at some tropical bar, and even on the a chairlift or two. Let's assume that we don't care whether the comparative makes any sense at all.
Let's look at Canadian residential real estate performance in major cities, and compare that against investment performance of the TSX. The two are nothing alike, but who cares right!!? Before we start, I want you to ask yourself 2 questions, and write down the answers
- what is the best performing residential real estate market in the last 1, 2 and 3 years?
- TWO residential real estate markets have slightly outperformed the TSX over the last 10 years. One is Toronto.....what is the second?
Now...to answer the questions asked earlier.
So........did you get it right? I'll be you didn't. I hope you enjoyed that one.