Is There a Bubble??
IS THERE A BUBBLE?
This is a pretty common question these days. We see it in the news, on our social media feeds, and talk about it at parties. I think the better question is, What would I do if I knew there was a bubble? Because bubble or not, for most people talking about this topic, real estate's main role in their lives isn't as an investment but rather as a home. So if this is the case for you, if your home's price is suddenly ballooning, but you want or need to stay living where you do, you really only have two options:
1. Believe that prices are going to plummet and therefore either sell and rent, or stay put and panic.
2. Believe that prices will stabilize or continue to increase and therefore stay put and don't panic.
We believe there is also a third option. Many of us have owned our homes for more than 5 years. If this is you and you haven't refinanced your home recently, you probably have a lot of equity sitting there. Although it might not feel like it, having all of your real estate funds in one property in one city is a lot like putting all of your RSP money into one stock. You probably aren't doing that but haven't thought of your real estate in those terms before. You're not alone.
If you would like to chat with us about how you can diversify your real estate holdings, we would love to sit down with you and show you what we are doing ourselves and what many of our clients have begun doing.