Wednesday, July 30, 2008


A recent article on July 12th 2008, in the business section of the Kelowna Daily Courier by Joseph Roberge, Investment Advisor, purported that over the last 30 years the S & P TSX Index outperformed Real Estate Investment. He claimed that the stock index averaged 10.8% per year while Real Estate was 7.7% average gain over the same period.

He conveniently omitted that:

1. The equity increase in your principal residence is tax free while stock gains are taxable. Advantage Real Estate!

2. You can live in your Real Estate Investment but not in your stocks. Advantage Real Estate!

3. You can buy Real Estate with a low down payment effectively increasing your yield. You need cash to buy stocks. Advantage Real Estate!

4. You can rent out all or part of your Real Estate and let your tenant buy it for you. Stocks you have to pay for yourself. Advantage Real Estate!

Bert Chapman is the Managing Broker/Owner of Premier Canadian Properties and past President of the Okanagan Mainland Real Estate Board