April 2020 is definitely an unparalleled segment in history. The world economy has been dampen with sudden breaks due to a virus we can only hope was not synthetic. The paradox of human herd like cognitive decisions have left grocery stores and pharmacies nation wide with a shortage on Toilet paper on the racks, why?

It really originated from Australia, who imports $214.1 Billion USD in product a year. They don’t have many natural resources and lumber translated into toilet paper was definitely first on Aussies mind during a pandemic in case Imports were minimized or halted. How that even crossed Canadians as a need to hoard during a pandemic beats me and many more when we are the 2nd Largest Export Producer in the World for Lumber. Enough of the toilet paper talk, clearly and absurdity of “ #herdmentality ” definitely shouldn’t be a topic of comparison of currency, to stocks, and real estate investment. So which one in the GTA is a winner ? Lets take a closer look.

The TSX/S&P 500 and the Toronto Real Estate market has both be progressively positive on the long term landscape. The last 30 YRs Stocks have shown an avg positive appreciation of 8.3% and Real Estate 5.4%, straight off the bat you might think stocks out do real estate, lets put all my savings in stocks.

Stocks
 
Pros
 
  • More liquid than Real Estate
  • Smaller Capital Investment to Jump in
  • Ability to get Exponential Appreciation in a Short Period of Time
  • Diversification with smaller capital investment possibleFirst on the list best price ( $5000-70,000 discount) for that project.

Cons

  • Can be very volatile
  • Depending on type of product purchase may need higher skill and attention to yield gains
Real Estate
 
Pros
 
  • Less Volatile
  • Positive market for the last 18 Years
  • Tangible Asset
  • Statistically in Positive motion unless there is a huge recession
  • Rent is Aggressively Positive which compliments investors
  • Leverage your money with Deposits ( investing a fraction to profit a
    percentage on 100% of the price)
  • Able to utlize physically to live in or rent out
  • Able to leverage equity within the property for liquidity

Cons

  • Not as liquid
  • Needs larger capital to enter the market
If you look at the above example, If buyer John Doe was ready to buy in August 2020 for the same location same size unit, it is NOT necessary that Platinum release  access of DEF condos is cheaper than XYZ condos or ABC condos, the timeline is important, as well most often remaining inventory has higher incentive to clear out.
 
Long story short, its WHEN your ready to buy. Yes, Platinum is the cheapest for the specific project. But that doesn’t mean that another product launched few months ago is more expensive than the current platinum release.