{"id":46234,"date":"2020-09-17T22:16:40","date_gmt":"2020-09-18T05:16:40","guid":{"rendered":"https:\/\/www.garbuttdumas.ca\/?p=46234"},"modified":"2020-09-20T19:46:43","modified_gmt":"2020-09-21T02:46:43","slug":"is-vancouver-real-estate-a-good-investment","status":"publish","type":"post","link":"https:\/\/www.garbuttdumas.ca\/2020\/09\/17\/is-vancouver-real-estate-a-good-investment\/","title":{"rendered":"Blog: Is Vancouver Real Estate a Good Investment?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Real estate has always been used as a common way to invest for the future. Investors seek out land as a way to diversify their assets, earn income, and increase their net worth. Over the last 10 years the average home in the Lower Mainland has gone up roughly 85%. The important question isn\u2019t whether or not real estate is a good investment, but instead we must ask what is the best way to use real estate to your advantage when investing?<\/span><\/p>\n<h3>We will compare the historic value of a detached home in North Burnaby on Fairlawn Drive purchased 10 years ago to the historic Value of Gold, Bitcoin, and the S&amp;P 500 over the last 10 years.<\/h3>\n<p><span style=\"font-weight: 400;\">Gold has outperformed Fairlawn by <\/span><b>approx 5%<\/b><span style=\"font-weight: 400;\"> as an investment and if you cashed out your Bitcoin to purchase Fairlawn in the fall of 2015 when it first launched, your lost Bitcoin would now be worth <\/span><b>$35,534,620!<\/b><\/p>\n<p>&nbsp;<\/p>\n<h3>Detached home on Fairlawn Drive vs S&amp;P 500<\/h3>\n<p><span style=\"font-weight: 400;\">If you bought Fairlawn 10 years ago with a 20% down payment, how did your investment perform compared to the S&amp;P 500?<\/span><\/p>\n<p><b>2010 Purchase Price: $800,000<\/b><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><em><span style=\"font-weight: 400;\">Initial Investment: <\/span><\/em> <span style=\"font-weight: 400;\">$160,000 (20% Down Payment)<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><b>2020 Sell Price: $1,490,000\u00a0<\/b><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><span style=\"font-weight: 400;\"><em>Initial Investment Performance (increase in value over 10 years):<\/em><\/span> <span style=\"font-weight: 400;\">$690,000<\/span><\/li>\n<li><span style=\"font-weight: 400;\"><em>Expenses (interest, taxes, maintenance):<\/em> $250,000<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><b>Profit: $440,000<\/b><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">If you invested $160,0000 in the S&amp;P 500 in July 2010, your profit today would be $400,000. In this scenario with a 20% down payment, <\/span><b>Fairlawn has outperformed the S&amp;P 500 as an investment by $40,000<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With a 50% down payment, the story is very different. If you invested $400,000 in the S&amp;P 500 in July 2010, your profit today would be <\/span><b>$1,000,000<\/b><span style=\"font-weight: 400;\">, which is <\/span><b>far outperforming Fairlawn as an investment.<br \/>\n<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Over the last 10 years, getting a mortgage with less than 20% down payment\u00a0<\/span><span style=\"font-weight: 400;\">to buy real estate would have resulted in a higher return on investment (ROI) than the S&amp;P 500.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3>Breaking down the numbers further:<\/h3>\n<p style=\"text-align: center;\">[pdf-embedder url=&#8221;https:\/\/www.garbuttdumas.ca\/wp-content\/uploads\/2020\/09\/Book1.pdf&#8221; title=&#8221;Real Estate Good Investment Breakdown&#8221;]<\/p>\n<p>&nbsp;<\/p>\n<p>Listen to <a href=\"https:\/\/www.garbuttdumas.ca\/2020\/09\/17\/episode-28-is-vancouver-real-estate-a-good-investment\/\"><strong>The Garbutt and Dumas Podcast: Is Vancouver Real Estate a Good Investment? episode<\/strong><\/a> to hear a more in depth breakdown of the different types of investments mentioned above.<\/p>\n<p>Do you have questions regarding investments in real estate, mortgages, and down payments? We would love to hear from you \u2013 <a href=\"https:\/\/www.garbuttdumas.ca\/contact-us\/\"><strong>contact us<\/strong><\/a> and we can help you with some of the specifics.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Real estate has always been used as a common way to invest for the future. Investors seek out land as a way to diversify their assets,&#8230;<\/p>\n","protected":false},"author":21,"featured_media":46255,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[891,971],"tags":[975,125,138,141,186,277,976,506,536,589,912,594,626,978,643,977,798],"acf":[],"taxonomy_info":{"category":[{"value":891,"label":"Buyers"},{"value":971,"label":"News + Tips"}],"post_tag":[{"value":975,"label":"blog"},{"value":125,"label":"burnaby"},{"value":138,"label":"burnaby real estate"},{"value":141,"label":"burnaby 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