Itâ€™s something you buy and hold for 30 years whilst inflation slowly works its magic reducing the â€œrealâ€ value of your debt.
Patience is a virtue, and a valuable investment strategy!
^spoken like someone who has taken a few $1000 'how to make money in real estate' seminars...
That theory worked well as the prime lending rate fell from 18% to 2%. Now what will drive leveraged assets like property higher? Negative interest rates?
Incomes are stagnant and rents have not kept up with inflation this decade. Unemployment is rising and the Province of Ontario has an enormous deficit. How can real estate prices possibly increase from here? The forces that propelled prices higher are no longer available.