When people talk about which types of investments are best, they always come to the conclusion that real estate is the best. Sure stocks, bonds, mutual funds, and index funds have their place, but the problem with those is that you can’t really touch them and feel them – other than if you have a physical stock certificate. Even then that piece of paper could become worthless. Whereas real estate is something tangible that you can stand on or in. Also it will never be totally worthless.
I remember the days when I worked at Nortel Networks and had a sizable stock portfolio which was 100% invested in Nortel. One time a financial expert told me I was crazy to have all my eggs in one basket and I just said that Nortel had a bright future and the stock could only go up. Boy was I wrong – in the span of about a year and a half the stock went from a high of $124 a share to around 10 cents. I remember thinking as it hit $100 then $80 then 60$ that it can’t go any lower. Well guess what? It did and never stopped until they went bankrupt and I had lost everything.
Since then I have bought numerous properties and have done very well. In Canada we never had the big crash like they did in the states, so the market is quite different here. Prices did go down significantly in 2008 but nothing like they did down south. I was patient and held on to my homes and was rewarded because now most of them have rebounded and are worth more now than they were at the height of the peak in 2007.
That is why I will always be a believer in real estate.