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Somerville, Tsur; Fleming, Cam; Smidesang, Anita

University of British Columbia. Centre for Urban Economics and Real Estate

The strong growth in the British Columbia (BC) real estate market since 2000 has sparked great interest in investing in the local real estate market. Recent performance, however, may not be the best determinant of an asset’s future place in an investor’s portfolio. This is both because this performance may be at odds with historic performance and because return alone fails to address both risk and the diversification benefits that result from a mix of assets in a portfolio. This report uses modern portfolio theory to examine the position of BC real estate in a diversified investment portfolio. We find that for many investors, BC real estate should have an important place in their investment portfolio and that the best results come from having a geographically diverse set of properties.Note: The Report was prepared Under a Grant for the Real Estate Institute of British Columbia

Text

2017-01-24

Attribution-NonCommercial-NoDerivs 2.5 Canada

http://hdl.handle.net/2429/50414

Unreviewed

http://creativecommons.org/licenses/by-nc-nd/2.5/ca/