House Rich, Cash Poor: When Renting Beats Owning

“Thou shouldst not have been old till thou hadst been wise.”
— Shakespeare, King Lear

“Perhaps a lunatic was simply a minority of one.”
— 1984 (George Orwell)

How One Vancouver Couple Bought Freedom (By Selling)

Back in 2017, a retired Vancouver couple sat in our office with a familiar Canadian problem: a beautiful home, about $400,000 in investments, and a lifestyle their pensions couldn’t fully support. We ran the numbers. The options were clear:

Shrink their life.
Grow their capital.

A reverse mortgage was one possibility. Selling the house, renting near Stanley Park, and investing the proceeds was another. They chose door #2.

Goodbye House. Hello Wealth.

To play it safe, they invested the proceeds in two stages:

December 2017: They added about $370,000, bringing their portfolio to roughly $770,000.
Early 2020: After solid growth, the account topped $1 million. They then added another $700,000 from the home sale, bringing the total to about $1.7 million.

From there, they paid themselves a steady income—$18,000 every quarter ($72,000 per year) for several years, recently increased to $25,000 per quarter ($100,000 annually).

And here’s the remarkable part: as of September 2025, their account is worth over $3 million—after years of withdrawals.¹

¹This example isn’t cherry-picked—it’s simply the one real-world case we have of clients taking this exact route. Past performance is history, not prophecy, and results will vary. This approach won't suit every investor, and we recommend making all decisions in consultation with your financial advisor.

Is Your Home a Retirement Plan—or a Liability?

For most Canadians, the family home is their biggest asset. From 1990 to 2023, national average home prices in Canada have appreciated by 6.3% annually.¹ But once inflation, taxes, repairs, and insurance are factored in, the real return is lower. A 2022 study by PWL Capital found that once inflation, taxes, and repairs are factored in, homeownership has delivered only about 1% in real annual returns.²

¹Returns can vary by region, timing, and individual circumstances. Property values in different markets—and for different types of homes—can change at very different rates.

²Again, these figures will vary by region, timing, and circumstances. The study captures some costs but excludes rent savings. We share this information not for precision, but to show how hidden costs can affect a home’s long-term return.

And condo owners face another hidden cost: special assessments. In B.C., strata reserves are often underfunded, meaning owners are told to budget $2,000–$3,000 a year for surprise repair bills—roofs, windows, plumbing, take your pick.

Still, many people celebrate their home as an “investment.” What they’re really celebrating is not paying rent. Often that's an emotional argument—not a financial one.

Our clients chose differently. They didn’t want the illusion of security—a title deed and an empty bank account. They wanted the real thing:

a home they love (a purpose-built rental apartment in downtown Vancouver), and
the liquid capital to fund the life they want.

Don’t Confuse a Roof with Returns

Renting is simple: you pay for shelter, and that’s it. The rest of your money is free to work in the markets instead of being locked inside one illiquid property.

Do the math:¹

Over the past 20 years, the S&P 500 has returned ~8% annually after inflation with dividends reinvested.
Canadian homeownership? Low single digits.

Owning for purely emotional reasons is fine—just don’t confuse love with a high-performing investment.

¹Again, past performance doesn’t guarantee future results, which can vary for many reasons. All data is provided for industry context only and isn't a direct comparison to WPM’s strategy or results..

Liquidity, You Complete Me

Health can change fast. Private long-term care in Vancouver? $8,000–$16,000 per month. If your wealth is tied up in bricks and drywall, your only option may be a fire sale—and good luck with that. GTA home sales are 81% below their 10-year average (as of Sept, 2025). Sellers may not just get hosed—they may not find buyers at all. Liquidity can spare you that pain—and gives you flexibility when it matters most.¹

¹Here we’re referring to highly liquid large-cap stocks, though every investment carries some degree of liquidity risk— something you should review with your financial advisor.

When Love Outweighs the Ledger

There are perfectly good reasons to own a home:

You want the freedom to remodel, keep a dog, or play the piano at midnight.
The emotional payoff outweighs the financial trade-offs.
You already have ample liquid assets for retirement

But if your retirement is underfunded, it may be wiser to prioritize compounding over countertops.

From House Rich to Life Rich

A house can be a home, but it’s rarely a strategy. It keeps you dry, but it doesn’t usually put cash in your account or food on the table. Investments can.

Our Vancouver clients understood this. By renting the home they loved and investing the equity they unlocked, they didn’t just change addresses—they gained flexibility, income, and peace of mind.

If you’re house rich but cash poor, let’s run the numbers together—and build a plan that funds the life you actually want. Contact us today.