Hello Readers. All of us at Amron are hoping that you had a great summer. Years ago, when I was on the “frontline” we always experienced slower new home sales in July and August and that still continues today. We attribute that to summer holidays and kids being out of school. It also allows us to have a week or two off and do some housecleaning at the office.
Well that’s what I was doing, housecleaning that is, and I came across some very interesting stuff. I found an old New Home Sales binder dated April of 1981. Talk about interesting. A brand new 1192 sq.ft home sold for $61,648.00. No GST either at that time. One option on that home was a basement entrance at $990.00. Today that amount won’t even buy the door much less all of the rest…wow!
Doing a little math, that house has quadrupled in price. That's 400% or 12 ½% per year. Not a bad investment for those who are homeowners.
Let’s look at renters and see how much they have done since 1981. Rent, just like house prices, has probably quadrupled. So today, a renter can proudly say that he has bought and paid for…yes…his landlord’s rental property.
The message here folks, is real simple. Owning a home is an investment and a darn good one. Even if that is all that you have when you retire, it is a financial windfall when you sell. Then you can rent and travel and do all the things that you are supposed to do when you retire.
Don’t think for a minute that house prices will not continue to climb. Just look around at larger Canadian cities. We’re not even close to them yet but we will be one day.
If you are a renter or a young person just entering the work force, think seriously about this investment opportunity that is available to everyone.
Come to our office and talk or phone me at 403-952-4071. Think about your future today!