I read a great deal, and as I read newspapers, magazines, financial books – there is a never-ending series of articles, columns, and essays asserting with considerable authority that we are in a “real estate bubble”. Are we? Maybe.
I have been hearing about this particular bubble for over 10 years. Apparently it has been an enduring bubble, lasting so long. No doubt many renters have died waiting for this enduring bubble to burst.
If you ignored the people proclaiming we were in a bubble in 2004 and purchased that year, how much has your house appreciated in the last 10 years? If you ignored the people proclaiming we were in a bubble in 2009 and purchased that year, how much has your house appreciated in the last 5 years?
No-one can predict the future. Perhaps this enduring real estate bubble will burst tomorrow – who knows? But for me personally, I found a house that my family liked back in 2007, purchased it, and we enjoy it to this day. It may go up in value next year, it may even go down – but either way we live there and enjoy ourselves as we do.
My suggestion to those who ask me about real estate bubbles is to take a long view. Buy a house you can comfortably afford, in a neighbourhood you intend to stay for 25 years, and pay off the house. Ignore whether your house fluctuates in value, simply turn off the tv news, make your payments, and enjoy your life.
Our house is the place where we live, sleep, relax. It is the place where we raise our family. You have to live somewhere, and I am just too old and stubborn to be asking a landlord whether I can change the paint colour of the living room – bubble, or no bubble.