Description: The Corona virus crisis has been bad news for certain business sectors, but you can’t say that about real estate. The market continues to be red hot with the Canadian Real Estate Association’s declaration that home prices are up 17% in this past year. Some have suggested that with the virus keeping more families at home for work and school, a desire for more living space may be one reason for the sharp rise.
Date: October 15, 2020
1) Are you planning to buy a home after you finish university? How will this rise in price impact you?
2) Has your university community seen an increase in cost for student rentals given this rise in real estate prices?
3) In Wiley’s Financial Accounting: Tools for Business Decision-Making, we know that normally a long-term asset like a house would be treated as property, plant and equipment. If you were a home builder, however, and you had several homes for sale, where would these be found on your statement of financial position?