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Warren Buffett: It's Time to Buy Real Estate


Warren Buffett appeared live on CNBC's Squawk Box this week. During the interview, he was asked about the current real estate market and whether he felt now was the time to buy. His response was rather emphatic and has been used as a headline in hundreds of articles since the interview:

"If I had a way of buying a couple hundred thousand single-family homes I would load up on them."

However, throughout the interview, he addressed the market from a few angles. Here is what he said:

Why invest in real estate now?

"It's a way, in effect, to short the dollar because you can take a 30-year mortgage and if it turns out your interest rate's too high, next week you refinance lower. And if it turns out it's too low, the other guy's stuck with it for 30 years. So it's a very attractive asset class now." 

Is buying your own home better than investing in stocks right now?

"If I knew where I was going to want to live the next five or 10 years I would buy a home and I'd finance it with a 30-year mortgage... It's a terrific deal."

 Should we buy multiple houses?

"If I was an investor that was a handy type and I could buy a couple of them at distressed prices and find renters, I think it's a leveraged way of owning a very cheap asset now and I think that's probably as an attractive an investment as you can make now."

Over the last couple of months, there have been more and more financial analysts coming to the same conclusion: It's time to buy real estate.

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22 Responses to “Warren Buffett: It's Time to Buy Real Estate”

  1. Bob February 29, 2012 at 12:16 pm # Reply

    Add this tool bar as part of this web page.  I have to shrink the page to find the tool bar off to the left of the page in order to send this information via email to my clients. .  

  2. Kham Beitlers March 2, 2012 at 3:11 pm # Reply

    2011 was a good year but 2012 looks like more buyers are feeling more comfortable to start shopping for a home. Interest rates are at its lowest and home prices are competitive. We have to educate our buyers that they are looking to own a home not for investment but because they want a place to call their own. It is a sense of ownership!

  3. Craig Fuhr March 6, 2012 at 12:03 pm # Reply

    I found Buffett's comments to be very interesting in that he does have the money to buy up as many houses as he desires, but given the time and foresight to do so, he concluded that one can not manage them effectively. THAT IS the most telling part of his comment. I wrote about this story as well as the one featuring Vena Jones-Cox at my blog: http://craigfuhr.com

  4. Park City Realtor March 7, 2012 at 8:57 am # Reply

     Warren Buffet's opinion is very significant to most people in investing business or anything related to business. This time it is another great opinion from the expert. Thanks for posting.

  5. Ourkornpatch March 14, 2012 at 8:56 pm # Reply

    Works for us!  Rentals generate more than interest on IRAs and CDs!

  6. cashflowgold June 26, 2012 at 6:09 am # Reply

    such a great lines said by property legend Warren buffet .

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Trackbacks/Pingbacks

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