Investing in top stocks versus Canada’s hottest real estate market
Property prices in Bancroft Ontario are up approximately 48 percent year over year. (Getty)
It was another stellar year for Canadian real estate, with returns on some of the hottest stocks outperforming.
We pitted Amazon, Tesla, Shopify, and Suncor against the hottest housing market in the country – a small Ontario town about three hours from Toronto called Bancroft.
Canadian real estate broke the national sales record in October. Home prices have risen by around 23 percent nationwide. But some of the smaller Ontario communities have risen a lot more. Prices in the Bancroft area are up around 48 percent.
The costs associated with buying a house have not been taken into account. Leverage was not considered so the buyer would be a lucky person, blessed to have around $ 470,000 to buy the average home in the area. This is just for fun.
Amazon
Jeff Bezos fulfilled his dream of flying into space in 2021. But Amazon’s stock was relatively grounded. The stocks are up around 10 percent. And while shareholders were well rewarded in the long run, Bancroft Real Estate smashed it this year.
Tesla
Elon Musk, CEO of Tesla, also flew into space and didn’t hesitate to twitter Bezos for doing it first. He also became the richest person in the world, even before Bezos. His main source of wealth is his Tesla stock. Despite the selloff after Musk announced he was selling shares, the stock is still up 76 percent, almost double the return on a Bancroft house.
Shopify
Often compared to Amazon, Shopify has been a darling of the exchange since its debut. It’s Canada’s largest company by market cap and has had another good year as more people shopped from home during the pandemic. It’s up 45 percent, but that’s not enough for this comparison as Bancroft Real Estate wins again.
See also: The latest real estate news on property prices, mortgage rates, markets, luxury homes and more at Yahoo Finance Canada.
Sun cor
Oil prices rose on supply issues, which was good news for oil companies, and their share prices reflected this. Canada’s largest energy company, Suncor, had one of the best years of all time with a plus of 42 percent. That wasn’t good enough either; Bancroft wins this time with three out of four points in this challenge.
Jessy Bains is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jessysbains.
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