Are You Caught in the “Average” Trap and Don’t Know It?

Sep 25 08:09 2017 Print This Article

The old sentiment of “Your head may be in a freezer and your feet in an over, but on average you are fine” is obviously wrong.

If it is so obvious in this context, why are so many people influenced by ‘Average’ prices, ‘Average’ rents and ‘Average’ economic growth?  To a strategic investor, basing decisions on ‘average’ numbers is just like developing a medical diagnosis based on the above old sentiment.  FOOLISH and incredibly dangerous.

We live in a world of headlines that pump national average house price, average number of housing starts, and the average household debt. The most important thing to remember about all these average numbers is that they don’t mean much in the grand scheme of things.

When it comes to investing in real estate, an average house price is the equivalent of taking the average temperature of every patient in a hospital, determining that it works out to 98.6 degrees and making the statement that everyone is in good health – it’s just not accurate. ‘Secrets of the Canadian Real Estate Cycle‘ will give you the insight you need to do the digging and look beyond the ‘average’ headlines.

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About Article Author

Don R. Campbell

Don R. Campbell is a Canadian-based real estate investor, researcher, author, educator and Founding Partner of the Estate Investment Network™, and Cutting Edge Research Inc. He and his experienced research team are leaders in providing Canada’s most current real estate investment education programs and economic research materials.

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