Experts say it is time to buy a home!

By
Real Estate Agent with Keller Williams Realty - East Monmouth

by the KCM Crew on Oct. 5, 2010

"If you don't own a home, buy one. If you own one home, buy another one. And if you own two homes, buy a third and lend your relatives the money to buy one." - John Paulson 9/27/2010

WOW! That's a powerful statement.

There is no question that John Paulson is a bull when it comes to residential real estate right now. Should we care what Mr. Paulson thinks? Should we listen to him? The answer to both questions is a resounding ‘YES'. Here are several reasons why.

Who is John Paulson?

Paulson is the person who made a fortune betting that the subprime mortgage mess would cause the the real estate market to collapse. He understands how the housing market works and knows when to buy and when to sell. What do others think of Paulson?

According to Forbes John Paulson is:

a multibillionaire hedge fund operator and the investment genius who made a killing going short subprime mortgages a few years ago.

According to the Wall Street Journal Paulson is:

a hedge fund tycoon who made his name, and a fortune, betting against subprime mortgages when no one else even knew what they were.

What did other financial players think of his statement?

The Wall Street Journal agrees with Paulson:

Ignore the critics. The odds have to be on his side...It isn't just that home prices have fallen a long way. It's also that, if you can get a mortgage, you are basically taking a reverse bet on the bond market. You could be a long-term borrower at fixed rates, instead of a long-term lender. Right now you can borrow for 30 years at around 4.3%. After the mortgage tax deduction, for some people the net effective interest rate is nearer to 3%. That's going to prove an awesome deal if we see inflation again.

And Forbes said:

As this is the best time in 50 years to buy homes, Paulson advised his listeners to take 30 year mortgages to buy a home as "your debt and interest payments get locked in at record lows, while the price of your home will rise."

Are others also saying now is the time to buy?

Just last week, we posted that there is a growing number of people saying that NOW is the time to buy, including:

  • The Wall Street Journal
  • Professor Karl Case, founder of the Case Shiller House Pricing Index
  • The wealthiest families in the country and
  • 70% of everyone else in America

Bottom Line

Thinking of buying a home? Are you taking advice from a friend telling you that now is not the time? It may be time to listen to the experts who understand the opportunities that exist in real estate today. 

Ready?  Call me at 732-768-1068 and get a deal while deals abound.

Jersey Shore Real Estate Top Agent Susan McLaughlin

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Ambassador
1,372,721
Praful Thakkar
Keller Williams Realty - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Whatever John said on 9/27/10, makes sense (and dollars for us!....)

Yes, it is the best time to buy a home.

Oct 06, 2010 12:33 AM #1
Ambassador
1,372,721
Praful Thakkar
Keller Williams Realty - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Whatever John said on 9/27/10, makes sense (and dollars for us!....)

Yes, it is the best time to buy a home.

Oct 06, 2010 12:33 AM #2
Rainmaker
342,003
Don Wixom
RE/MAX Advantage Nampa, ID - Nampa, ID
"Looking out for your next move..."tm

Great post, Susan! Is now the best time? If we wait to see where the bottom is, it will be too late!

Oct 06, 2010 12:33 AM #3
Rainmaker
228,748
Doug Dawes
Coldwell Banker Residential Brokerage - Georgetown, MA
Your Personal Realtor

Real Estate is a good buy just about anytime. However, right now, we are at a point where some very serious dollars will be made, tomorrow, by those who purchase, smartly, today.

Oct 06, 2010 12:35 AM #4
Rainmaker
562,448
Steve, Joel & Steve A. Chain
Chain Real Estate Investments & Mortgage, Steve & Joel Chain - Cottonwood, CA

Susan,

If the saying is true;"buy when everyone is selling and sell when everyone is buying" then this is THE time to buy.

Steve

Oct 06, 2010 12:37 AM #5
Rainmaker
573,702
Phil Leng
Keller Williams Eastside Market Center - Kirkland, WA
Phil Leng Team - Residential Real Estate Experts &

Hi Susan,


Don't take my word for it - here is what the expert says.

Good job...

Phil

Oct 06, 2010 12:39 AM #6
Rainmaker
84,067
Simon Mills
Mills Realty - Toluca Lake, CA

Susan - We need to see more articles like this one.  Thanks for bogging about it.

Oct 06, 2010 12:46 AM #7
Rainer
44,401
Brian Wright
BeagleNation Real Estate Investments - Chandler, AZ

Like T. Harv Eker says..."don't wait to buy real estate, buy real estate and wait".

Oct 06, 2010 12:51 AM #8
Rainmaker
947,952
Bob & Leilani Souza
Souza Realty - Roseville, Rocklin, Lincoln, Loomis, Granite Bay, Penryn, Newcastle, Auburn, Meadow Vista (California) - Roseville, CA
Placer County, CA: Foreclosures, Auctions, Rentals

Thanks for posting this, Susan! I see no reason to disagree with the expert...I also believe that it's best to Zig when everyone else Zags. :)

Leilani

Oct 06, 2010 01:03 AM #9
Rainer
20,041
Nick Tukmanian
RealWorks Residential - Colts Neck, NJ

This is a great post that's also very inspirational. While Paulson is without question bullish, the essence of what he is saying is that for those with money right now it's a great time to get ahead in the market.

Nick

Oct 12, 2010 03:56 PM #10
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Rainmaker
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Susan McLaughlin

Monmouth County Real Estate
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