Real estate markets fluctuate continuously. Historically, there have been periods when real estate values have decreased. However, looking at the values of homes in your neighbourhood over the last decade, depending on the area you live in, it’s more likely that prices have risen, and in some cases, risen significantly.

So, what is the future of the real estate market? Well, of course nobody can predict the future. However, regardless of market value increases, there are clear advantages to owning your own home. Firstly, your principal residence is not subject to capital gains tax. If your home does increase in value, these increases are capital gains tax free. Secondly, unlike many other investments, you can buy real estate using predominantly someone else’s money. Provided you qualify for a conventional mortgage with a down payment of 25%, you’ve invested in a property worth 4 times that investment. If you qualify for a high ratio mortgage, you’ve leveraged your investment even further.

Back to the future. By the time you’ve paid your mortgage in full, a 25% down payment (or initial investment) has quadrupled, even if the market value of the property has not increased. However, if the market value of the property has increased, that amount is not only direct profit for you, the owner, but again, this cash is tax free.