What Does Wealth Mean To You?
What does it mean to be rich? Is it a fancy car parked in your driveway? Maybe a six or seven figure salary? For many Canadians, wealth is measured monetarily—the amount in your savings and chequing accounts, RRSPs, investments, and value of your assets. It seems as though people are on a constant chase for financial gain, seeking new ways of building capital even if it means sacrificing time that could have otherwise been spent with loved ones, in order to fill your bank account. Some people are so preoccupied with chasing financial wealth that it impacts their physical and emotional health, as well as their relationships. Wealth or “being rich” is truly a relative term, and the way you define it can determine the actions you take to achieve it. If you believe your life currently lacks abundance and happiness, will a $1 million cheque change your outlook? Not likely.
What if there was a long-term investment that provided an abundance of socio-emotional wealth? An investment that would appreciate in value, however, didn’t require time away from your family. In fact, it could provide a base for your family to grow, and could possibly pass on to future generations.
According to a study performed by TD Bank, nearly 40 per cent of investors believe real estate is an investment in which they will always see a financial benefit, with 74 per cent of respondents viewing their own home as a real estate investment. When compared to other sectors, real estate is considered an investment that people are confident will provide future returns, ranking second behind the financial sector.
Investing in property provides both financial and socio-emotional benefits. For Canadians, there are opportunities for a number of tax deductions and exemptions for homeowners. Not only is a home an asset that could be part of a portfolio, it provides a shelter for your family and can be a place to foster the of positive relationships. By teaching your children the long-term financial and emotional value of real estate early, you can help instill a mindset that understands the various forms of wealth. While traditional savings accounts may not be considered risky, they provide a low return. Instilling lessons regarding real estate as a long-term investment could lead to a rewarding path for your children, as well as future generations. Your home is one of the most valuable assets you will have in your lifetime, bring both emotional and financial return on investment. The peace of mind knowing it will provide security for your retirement, and also for your children even after you pass is something you can’t put a price on.