It’s really easy to get totally depressed if we listen to the news. It seems every new day brings more upsets – at least that’s how the media presents it. Bad news sells so they don’t bother to look at the “bright side”. They paint a horrible picture then talk about consumer confidence being down. They’ve been doing this for over a year.
Well, I’m only one voice in the wilderness, and I try to remain positive. I like to look for the silver lining in the cloud. Doing that has served me well over the years and opened doors or led to opportunities that I otherwise might not have found.
Here’s how I’m trying to turn my mindset around:
- The stock market has returned to late 1990 levels. How did I feel then? I don’t recall being concerned that the Dow was in the 6′s at THAT time, so why should I be concerned now? I don’t recall the media being in a Chicken Little mode then. Why are they now?
- Only 5-8% of homeowners are in trouble with their mortgages. That means that 92-95% of homeowners are NOT in trouble. Why does the media make the minority sound as if they are the majority when they are not?
- In 1997, I purchased my home at 8.5% interest rate. How did I feel about that rate? I’ve owned three homes in the past 30 years and bought all of them when rates were in the 8′s. The rates are now in the high 5′s to low 6′s. That’s a lot better than it used to be, so I should feel good right?
- If I were to put my home on the market today, it would likely sell for 20-25% more than I paid for it in 1997. That’s certainly a good thing and it makes up for the stock portfolio being flat with 1997.
- During the interim 12 years, I’ve benefited from tax deductions to my mortgage interest and property taxes giving me even more benefit.
- I’ve been making my mortgage payments for 12 years, and refinanced in the early 2000′s so my payment is less than what I would pay for a small 2BR apartment. The equity I have is most definitely a good thing.
When I purchased my homes, I didn’t do so with any thought to the rate of return I would receive from them. We don’t buy homes in the same way we buy stocks or mutual funds. We buy homes with the dreams of living in them, raising families, entertaining friends, having the in-laws for holiday dinners, etc. So why does the media treat a home purchase as if it were a stock purchase. Only investment speculators buy houses that way, not ordinary people.
So my “GLASS IS HALF FULL” outlook is that I’m going to think as I did when it was 1997. Then I’ll either ignore the media or I’m going to turn off the friggin’ TV.
Besides, just think … I’ll be 12 years YOUNGER! Nothing wrong with that!
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