Tuesday, October 14, 2014

Real estate investment: Canada or US?

As mentioned here, the 3 biggest factor of real-estate value are: Location, Employment and Population.

If we factor in real-estate bubble, currency, interest rate risk it is safer to invest in the US.

FactorWeight
Location60.00%
Employment20.00%
Population20.00%
LocationQuebec (Can)Main (US)
current valuation (revenue)20.00%1.351
currency valuation 25.00%1.350.9
Foreign investment10.00%0.850.75
Interest rate risk15.00%1.40.9
Crash risk15.00%1.350.9
Life quality15.00%0.81.25
SUM100.00%1.2250.9575
Employment
Education access20.00%0.651
Population education level20.00%0.751
Life quality10.00%0.81
Job market50%0.750.9
SUM100.00%0.7350.95
Population
Population demography50.00%1.51
Immigraton50.00%0.750.75
SUM100.00%1.1250.875
Quebec (Can)Main (US)
Score1.1070.9395

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