TSX vs Alberta Real Estate (ARE)

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TSX VS ALBERTA REAL ESTATE Unlike paper-based investments, real estate never goes to zero

Transcript of TSX vs Alberta Real Estate (ARE)

Page 1: TSX vs Alberta Real Estate (ARE)

TSX vS ALBERTAREAL ESTATEUnlike paper-based investments, real estate never goes to zero

Page 2: TSX vs Alberta Real Estate (ARE)

PARKHURST ASSET CORP | 1.888.317.3337 | ptrust.ca

Notes:

Based on average residential home prices in Alberta.

Assumes a $100,000 initial investment and does not factor taxation.

Real Estate examples assume neutral cash-flow.

Mortgage particulars used: 4.5% interest, 20 year amortization, 75% LTv, mortgage paydown included in calculations.

All periods ending December 31.

TSX vs. Alberta Real Estate (leveraged & non-leveraged)

$100K Investment Over 10 Years Sources: CREA, TSX Group

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$02001 2002 2003 2004 2005 2006 2007 2009 2010 20112008

S&P/TSX Composite

Alberta Real Estate (No Mortgage)

Alberta Real Estate (75% Mortgage)

$734,376

$229,631

$155,502

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PARKHURST ASSET CORP | 1.888.317.3337 | ptrust.ca

If we’re going to get confidence and take advantage of this new investment climate, we need to become skeptical. We must question what we are told and what we are promised. We need to understand what we are investing in and why and how it makes a profit.

We should choose investments based on a sound fundamental strategy and not compare them solely by returns or past history; some of the ‘best performing’ and oldest investment firms have recently collapsed.

We need to bring our Investments closer to us.

This new reality has resulted in more and more Canadian investors taking charge of their investment portfolios and financial goals by educating themselves on options available and asking hard questions. As a result, significant changes to transparency, advertising, and securities regulations have taken place.

You have always had control over your own investments, and now is the time to take the next step to action that could change your investment future.

Questions every investor should be asking:

1. What should my overall investment portfolio look like?

2. How does this compare to my diversified portfolio today?

3. How have my current investments performed in the past 5-10 years?

4. In real dollars, after fees, taxes and inflation, am I really getting ahead?

5. What other investment options are available that I may not have looked at in the past?

6. What portion of my investment portfolio should be in investment real estate?

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