Older people are more bullish on property as an investment than the younger cohort
Younger investors are not convinced that owning property is the best investment in 2022 according to a newly-published survey.
Overall, cash comes out as the asset that most Canadian are bullish on for this year (33%) while property comes second (28%) ahead of cryptocurrency (15%), stocks and ETFs (11%), commodities (6%), and NFTs.
Optimism in property as an investment grows with age in the survey’s results with those aged 65+ most bullish (42%) while those aged 18-24 are less convinced (15%) with 21-29% of those in the age groups in between citing property as their top investment pick for the year.
The poll was conducted in December 2021 for the Finder Retail Investor Sentiment Report, before the conflict in Ukraine which is creating turmoil in global financial markets.
Interest rates
Men are generally more likely to favour cash compared to women (who favour real estate) which may be surprising given the inflationary impact on cash holdings.
Finder’s Nicole McKnight says that women’s interest in real estate may result from current low interest rates.
“It's possible they are looking to buy a new home or refinance their mortgages while interest rates are still relatively low before the Bank of Canada begins raising the overnight rate,” she said. “Another possibility, is they may believe real estate prices will continue to rise for 2022, which is a possibility.”
Interest rates in Canada could rise as soon as tomorrow (March 2).
