Mar 10, 2026
While we adhere to strict editorial guidelines, partners on this page may provide us earnings.
In his last letter to Berkshire Hathaway shareholders, legendary investor Warren Buffett reflected on a personal milestone: the Omaha home he purchased in 1958 and never left.
Despite a net worth of about US$154 billion, Buffett still lives in the same modest house he bought for US$31,500 — equivalent to about US$336,000 today.
While his choice is often framed as extreme frugality, it reflects a core "buy-and-hold" mindset.
Buffett has famously warned that housing is not a traditional investment because taxes, insurance and maintenance eat away at returns.
However, he still calls his home one of the best investments he ever made because it was bought carefully, held patiently and never overleveraged.
For Canadians, this steady approach is a vital lesson in a market often driven by short-term speculation.
The high cost of moving in Canada
The secret to Buffett’s strategy is patience.
Long-run data from the Teranet-National Bank House Price Index also show that Canadian home prices tend to rise over decades, but not in a straight line.
Between transaction costs, property taxes and mortgage interest, housing is rarely a "slam-dunk" investment over short holding periods.
In fact, research from RBC Economics and the Canada Mortgage and Housing Corporation (CMHC) suggests homeowners often need five years or more just to break even after closing and selling costs. During cycles of elevated mortgage rates, that timeline can stretch even longer.
Buffett’s strategy wasn't about timing the market; it was about:
- Buying within a budget
- Avoiding overleveraging
- Focusing investment energy elsewhere
How to apply the Buffett model today
One of the biggest takeaways to Buffett’s approach is that real estate works best when it’s treated as a long-term decision first rather than a short-term investment play.
If you're currently shopping for a home or have a mortgage renewal coming up, you need a strategy that prioritizes your long-term budget over ideal market timing.
A quick five-minute application with Homewise can help you secure a great rate on a new mortgage, without the stress of shopping around yourself.
Their free online tool compares offers from over 30 banks and lenders to ensure you find a mortgage you can comfortably afford, so you aren't overleveraged from day 1.
From approval to close, you can expect support from a personal Homewise Advisor — for free — so you get transparent advice that can potentially save you thousands of dollars in interest.
And the good news is that you don’t even need a credit check to fill out their online application, whether you’re trying to get a pre-approval as a first-time homebuyer, shopping around for the best rate or planning ahead for a mortgage renewal.
Another way to emulate Warren Buffett’s buy-and-hold strategy is to stop thinking of your mortgage as a static monthly bill and start treating it as a financial tool.
Refinancing could help you do exactly that. You can restructure your mortgage in a way that helps you pay it off sooner with the help of Loans Canada.
One option is to secure a lower interest rate while keeping your current monthly payment the same, allowing more of each payment to go toward the principal.
Another is to choose a shorter amortization period, which can accelerate your path to mortgage-free homeownership.
Your monthly payment may rise with a shorter term, but if your budget can handle it, the savings in total interest over the life of the loan can be significant. In many cases, that could mean owning your home outright years earlier — freeing up money that could then be redirected into your retirement portfolio.
Simply add your postal code and answer a few questions and you’ll be connected to a mortgage refinancing specialist with Loans Canada.
Vawn Himmelsbach is a journalist who has been covering tech, business and travel for more than two decades. Her work has been published in a variety of publications, including The Globe and Mail, Toronto Star, National Post, CBC News, ITbusiness, CAA Magazine, Zoomer, BOLD Magazine and Travelweek, among others.
Managing Money • Mar 24
