Sunday, December 5, 2010

Subtlety from the Edmonton Sun

I had to take this screen capture from the Edmonton Sun. Looks like a mortgage broker is writing articles for them. The main theme appears to be a blind assumption of property appreciation.

Things they forgot to mention:
-Interest rate risk
-Risks associated with being a landlord
-Risk of asset depreciation combined with leverage

I'm not against people buying houses, and/or investing in real estate but this article reads like a cheesy infomercial.

1 comment:

Chris Davies said...

As an investor (and now as a Realtor), these articles drive me nuts. I do happen to think real estate is a great investment, however you're right, those are cheezy crap ads, just to fill space.

I do see decent returns with no appreciation, just based on positive cash flow and mortgage pay-down though.