Over the last 10 years Vancouver Real Estate has proven to be a solid investment for investors. This last year proved that the gains from the market were a better choice over gold and silver. Even with the turbulence in the market, the impressive numbers returned have not been released but speculation is that there are huge smiles on investors faces. An average home in Metro Vancouver earned at least 7.5% return between the last ten years. The average home price was a mere $250,000, but last year the price was around $660,000 according to the ReMax Housing Report.

This performance in the Vancouver real estate venue outperformed most commodities and gold in the later part of the year of 2010. Real estate is a solid investment but only for the long term haul. The high prices of homes around Canada are making a scarring impression on the longevity prospects of the investments. The next few years will be a bit difficult for investors to recover their initial investments. Investors will have to be a bit patient, even if their initial investments take longer than five years to recover. In other parts of Canada the compound annual rate was high as 8% on returns.

The high prices in Vancouver and Metro Vancouver have affected sales and spooked some investors from purchasing properties and gaining a capital from them. This did not stop the major players from causing Vancouver to beat the national market average of 6.6%. The housing market tends to shadow the growth from disposable incomes but the rate was beyond normal. The income growth in Canada has been about a fourth of the national compound return. The future of Metro Vancouver real estate is uncertain with the offshore investments arriving from China and other parts of Asia. The cash flow is definitely a good plus for the short term but buying from a foreign investor is a bit harder than getting a loan from a loan shark.

Even with the temporary label of “unaffordable” most investments over the next few years will be difficult to swallow, unless there is a sudden shift in the economy or other factors that would favor the real estate zone. This does not mean that other places in Canada are not attractive or the returns are not going to be there. It will take a bit of time for the matters to settle down but the local investors are weary of the long journey ahead. The choice’s residents makes are limited by the present conditions offered by the Canadian real estate market.

Source by Nicholas Kier Kurniawan

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