Ravinder Tulsiani | Real Estate Market Vs The Stock Market | A Real Estate Agent, one of the most important questions I am asked from many peoples who are looking to make a very smart investment, is whether they are more better to invest in the Real Estate Market Vs The Stock Market??
Canada has the largest percentage of multi property owners in the whole world. Not a surprising factor considering the recent performance of the Canadian real estate market. But is real estate really the perfact long-term option 
Many financial advisers will more argue that if you look at the last twenty years Canadian stocks have seen an average growing of 6.1% per year vs Canadian real estate values, which have had an average increase of only 4.1% annual. Therefore, the stock market must be the be investment, right? Not necessarily, as this is not taking into thought that when you invest in real estate you have the more ability to leverage your money through financing. For example, if you invest $110,000 of money in the stock market you would be able to buy exactly $110,000 worth of stocks. But, if you were to invest the same $110,000 in real estate, with 78% financing, you would be able purchase $410,000 worth of real estate. If you look at a 20 year forecast for both investments, the $110,000 in stocks would have grown to $429,190 (based on 6.1%/year compounded) and the real estate investment would have grown to $1,166,335 (based on 4.1%/year compounded). That is a 158% higher return for real estate (assuming the property had a tenant).
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If you buy an investment property that just breaks even and should that property value at only 3.1% per year then you should see at least 18% annual return on your investment! If you were to purchase a property that is cash flow positive then you can see per year returns upwards of 24%. Below is a chart running a 20 year analysis on a sample rental property listed at $460,900.
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As you can see from the check above real estate has the largest average return on investment. It is the number one asset class for long-term stability. It is a tangible