Own Property? What You May Not Know Is…
2 min read…You’re probably over-invested in Canada
In the last few years, Canadians have become more excited about real estate, with some saying “if I can get in, it’s the best investment I can make.” There’s no question that many have seen the value of their property increase.
The results?
1. An imbalance of real estate compared to overall net wealth
Source: Stats Canada, Survey of Financial Security, 2019. Table 2: Assets, debts and net worth held by all families in Canada. Released in The Daily, Tuesday, December 22, 2020.
2. Your financial well-being is already tied to the Canadian economy – and your local market
Consider the situation of many Canadians who were impacted when the price of oil declined. It may have affected more than just the value of your investments in the financial markets.
Your Home
Your Career
3. Your investments may also demonstrate “home-country bias”
The Canadian market represents less than 4% of the world’s market capitalization, while the average Canadian holds more than 70% in Canadian investments…
Source: AGF Investments Inc. MSCI World Index, as at January 29, 2021. MSCI World is used as a proxy for the “Rest of the World” as Canada represents only 3.1% of the Index.
What Can You Do?
For many, selling your house or changing careers isn’t realistic – but you can adjust where you invest.
Your financial advisor can help determine where real estate fits in your overall portfolio – helping ensure that you’re not taking on too much debt, that your other goals aren’t impacted and that your portfolio is appropriately diversified.
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