Canadians might be ready to shed their reputation as real estate obsessed investors. A new survey from financial comparison site HelloSafe found real estate is now the second highest preference for investors. After home prices made record gains, young and old respondents now prefer stocks as their favorite investment vehicle for building wealth. That can have a big impact on the future of the country’s investment landscape, currently billed around housing.
Most Canadians See Stocks As Their Highest Investment Priority
Canadians generally prefer stocks, according to the firm’s latest findings. Stocks were the preferred investment for 46.3% of respondents, followed by real estate (34.5%), Life Insurance (10.1%), Cryptocurrencies (4.1%), and others (5%). The age of the investor had a big impact on their preference, and not how most would expect.
It’s Not Just About Being Locked Out—Seniors Prefer Stocks Too
Age appears to be one of the largest demographics impacting investment preference. It’s easy to see why younger adults, largely locked out of real estate investment, don’t see it as a big priority. In addition, the spread of things like Wall St. Bets on Reddit certainly makes equity appear to be a more fun way to invest.
That belief is generally reflected, with most young adults preferring stocks. What was less expected is the majority of investors aged 46 and older would also prefer stocks to other investments. This was especially true for the 56 and older crowd (66.5%), which had the highest preference for stocks.
Canadians Now Prefer Stocks To Real Estate
Preferred investment type by age group in Canada. Survey conducted in April 2024.
Source: HelloSafe; Better Dwelling.
Real Estate Still A Top Priority For Many Middle Aged Adults
Middle Aged adults appear to be the most drawn to real estate. The only age range to prefer real estate over stocks was between 36 and 45 years old, with 47% calling it their top priority. Considering this is the age range where adults are first-time buyers in many major cities, it makes sense. At least it makes sense it would have to be their biggest priority, since it would likely consume most of their investment capital at their point of purchase.
Real estate has traditionally provided a big boost for household wealth in Canada. However, it appears after a sharp surge in value and stretched affordability it has dampened the outlook for most. On the other hand, most Canadians now prefer a segment of investing the country has failed to foster, which likely means capital will be boosting enterprises in the US for the most part.
Canada’s government pushing taxation on everyone but its corporate real estate overlords.
They aren’t passing the capital gains tax change IMO. It was just to distract people from whatever else they were doing, because they didn’t even include it in the tabled legislation. It was just to trigger everyone into a tizzy.
We’ve got a choice between being liquidity or investing in our replacements. About to obliterate the last value of housing by shifting the burden onto regular investors.
Gen X knocked it out of the park by making Boomers and Millennials fight, when in reality they were the ones bidding up property. IIRC I also read on here that they were the primary demographic for investors too.
Smart, the big gains in Real Estate have been made, many got burnt, stuck with overpriced condos, unable to sell to even break even, unable to rent for enough to cover the mortgage, taxes and condo fees, nevermind the maintenance. Get a bad tenant and they are bankrupt. Too late to the party, buy Nvidia and watch it drop over the next 12-18 months, timing is important..