DrEasy
Out rumptackling
It depends. Investing in a place like Vancouver is going to be a high risk high reward type of scheme. You'll want to get out before the bubble bursts or regulations change. Even there though, if you buy just to rent to people you'll do fine. Less risk, less reward, fairly safe.So I heard some talk on the radio today about BC's Speculation Tax which is intended to drive down housing prices so they are more affordable. Now of course a lot of the opposition is that it will drive down property value which are people's retirement funds and what not, and those are valid concerns.
I am in no way an expert in financial planning, but is it just me or is investing in property not the idea. It seems to me that there are just so many stories about how property in a particular area lost a bunch of value because of whatever changes. For example there was a golf course in Calgary that got shut down and is now a new neighborhood, but there was a bunch of complaining when it happened. Districts get rezoned and property values can fall. Whenever the affordable housing debate comes up here people claim property values will fall. I understand that investing in property can result in the value increasing significantly, but am I crazy for thinking that the risks (unpredictable changes resulting in decreased value and potential loss of retirement fund) aren't worth it, and it makes more sense to go for safer investments.
Speaking of investing though, I only found out yesterday about Robinhood. It's an online brokerage in the US where you don't pay any fee for buying and selling stocks. I've always thought of buying stocks but the initial investment and the fees have always seemed high, and it just seems so complicated. This Robinhood thing seems perfect for me, but of course it is not available in Canada yet.