Monday, April 12, 2010

real estate is leveraged investing

Certainly I am one of the people who thought the stock markets, Nortel and other penny stocks, mutual funds that I purchased could NEVER go down.

Boy did I pay dearly for that line of thinking over the past 25 years or so.

I look at all my mutual fund investments and stocks and the return that I have received on ALL of them is dismal and abysmal.

If I could do it all over again, I would not bother with RRSP's and just take all those investment dollars and plough them into the real estate market.

I should have put every dime I ever put into the stock market into real estate. Not only has real estate done well, but it's leveraged investing, so you reap a huge return on your small downpayment, people seem to ignore this fact when they buy stocks versus real estate.

So why do I continue to contribute to RSP's? Because there continues to be a tax benefit. That's the only reason.

I will blog more about this in the future.

Thanks again for your comments, suggestions and input on this issue!

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