The Power of Property
The best time to plant a tree is 20 years ago. The second best time is today.
-Chineese Proverb
Quite simply, property is one of the soundest investments available. Irrespective of the peaks and troughs of the last 30 years, property has historically risen in value nearly every year since records began. While historical performance is not a guarantee of future growth, any downturn in the property market can be managed, using techniques which made profit in the 90's despite the market.
Property simply has many more options and control than traditional investments, coupled with the fact that our investment strategy is simple; we only buy property if it is financially advantageous. We never purchase property based on emotion - it is a mathematical process. Simply put: 'If the math doesn't work, we don't buy!' Our strict purchasing criteria and huge network of agents and experts, ensures we can secure excellent purchases in the areas we've selected. Generally, you buy real estate with financing and that gives you a leverage of four or five to one on your money.
Historical Market Analysis - Calgary |
|||||
| Year | Average Residential Combined Price | Percentage Increase from year prior | Cash Cost @ 25% down | Five Yar equity (cash) | Five Year Total Return (50/50 Split) |
| 1968 | $19,450.00 | ||||
| 1969 | $22,235.00 | 14.32% | $5,558.75 | $18,132.00 | 164% |
| 1970 | $22,770.00 | 2.41% | $5,692.50 | $28,560.00 | 251% |
| 1971 | $23,645.00 | 3.84% | $5,911.25 | $46,609.00 | 394% |
| 1972 | $25,360.00 | 7.25% | $6,340.00 | $47,161.00 | 372% |
| 1973 | $31,270.00 | 23.30% | $7,817.50 | $49,456.00 | 314% |
| 1974 | $40,417.00 | 29.25% | $10,104.25 | $49,143.00 | 243% |
| 1975 | $51,330.00 | 27.00% | $12,632.50 | $49,249.00 | 192% |
| 1976 | $70,254.00 | 36.87% | $17,563.50 | $44,564.00 | 127% |
| 1977 | $72,521.00 | 3.23% | $18,130.25 | $35,866.00 | 99% |
| 1978 | $80,428.00 | 10.90% | $20,107.00 | $20,910.00 | 52% |
| 1979 | $89,560.00 | 11.35% | $22,390.00 | -$336.00 | -1% |
| 1980 | $100,579.00 | 12.30% | $25,144.75 | -$17,336.00 | -34% |
| 1981 | $114,838.00 | 14.18% | $28,709.50 | -$24,702.00 | -43% |
| 1982 | $108,409.00 | -5.60% | $27,102.25 | -$13,105.00 | -24% |
| 1983 | $101,338.00 | -6.52% | $25,334.50 | $2,174.00 | 4% |
| 1984 | $89,224.00 | -11.95% | $223,006.00 | $22,370.00 | 50% |
| 1985 | $23,244.00 | -6.70% | $20,811.00 | $44,282.00 | 106% |
| 1986 | $90,136.00 | 8.26% | $22,534.00 | $36,962.00 | 82% |
| 1987 | $95,304.00 | 5.73% | $23,826.00 | $32,317.00 | 68% |
| 1988 | $103,512.00 | 8.61% | $25,878.00 | $28,760.00 | 56% |
| 1989 | $111,594.00 | 7.81% | $27,696.50 | $21,274.00 | 38% |
| 1990 | $127,526.00 | 14.28% | $31,881.50 | $4,426.00 | 7% |
| 1991 | $127,098.00 | -0.34% | $31,774.50 | $7,545.00 | 12% |
| 1992 | $127,621.00 | 0.41% | $37,905.25 | $15,664.00 | 25% |
| 1993 | $132,272.00 | 3.64% | $33,066.00 | $25,061.00 | 38% |
| 1994 | $132,868.00 | 0.45% | $33,217.00 | $33,242.00 | 50% |
| 1995 | $131,952.00 | -0.69% | $32,966.00 | $44,353.00 | 67% |
| 1996 | $134,643.00 | 2.04% | $33,660.75 | $47,447.00 | 10% |
| 1997 | $143,305.00 | 6.43% | $35,626.25 | $54,752.00 | 16% |
| 1998 | $157,353.00 | 9.80% | $39,338.25 | $53,811.00 | 68% |
| 1999 | $166,110.00 | 5.57% | $41,527.50 | $56,691.00 | 68% |
| 2000 | $176,305.00 | 6.14% | $44,076.25 | $74,636.00 | 85% |
| 2001 | $182,090.00 | 3.26% | $45,522.50 | $164,583.00 | 181% |
| 2002 | $198,057.00 | 8.77% | $49,514.25 | $158,900.00 | 160% |
| 2003 | $211,164.00 | 6.62% | $52,791.00 | $145,793.00 | 138% |
| 2004 | $222,801.00 | 5.51% | $55,700.25 | $134,156.00 | 120% |
| 2005 | $250,943.00 | 12.63% | $62,735.75 | $106,014.00 | 84% |
| 2006 | $346,673.00 | 38.15% | $86,668.25 | $10,284.00 | 6% |
| 2007 | $356,957.00 | 2.97% | $89,239.25 | $0.00 | |
