When HE says it's time to buy real estate... It's time to buy real estate!

By
Real Estate Agent with Keller Williams Realty - East Monmouth

Warren Buffett:   It’s Time to Buy Real Estate

by The KCM Crew on February 29, 2012

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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  1. Susan Goulding 02/29/2012 10:19 PM
Topic:
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Location:
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Groups:
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MonmouthNewJersey
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Rainmaker
725,211
Elite Home Sales Team
Keller Williams Realty - San Clemente, CA
A Tenacious and Skilled Real Estate Team

It Is important to remember now is the time to get as many homes as possible.

Feb 29, 2012 09:34 PM #1
Rainmaker
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Kathy Clulow
RE/MAX All-Stars Realty Inc. Brokerage - Uxbridge, ON
Trusted For Experience - Respected For Results

Susan - the time to buy is now, before the hoardes get wind of the really good deals to be found ..... in some areas prices have already started to rebound very well

Feb 29, 2012 09:41 PM #2
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Michelle Carr-Crowe-Selling Silicon Valley Homes in Top Schools San Jose, Cupertino, Saratoga, Palo Alto-Just Call 408-252-8900
Just Call (408) 252-8900! - San Jose, CA
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Susan, thanks for sharing some of Warren Buffet's actual comments on this.

Feb 29, 2012 11:23 PM #3
Ambassador
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Michelle Carr-Crowe-Selling Silicon Valley Homes in Top Schools San Jose, Cupertino, Saratoga, Palo Alto-Just Call 408-252-8900
Just Call (408) 252-8900! - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

Also, I subscribed to your blog, you can read my Silicon Valley Calif. blog at www.activerain.com/results.

Feb 29, 2012 11:24 PM #4
Rainmaker
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Erv Fleishman
Realty Associates - Boca Raton, FL
Luxury Prop Specialist Realty Associates

He also said taxes were too low for the rich. 

Of course, this is after he has made his money.

He still lives in the same home in Omaha. Has not bought in years.

Mar 01, 2012 03:29 AM #5
Rainmaker
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Wayne and Jean Marie Zuhl
Hallmark Realtors - Clark, NJ
The Last Names You'll Ever Need in Real Estate

Like Warren Buffett, you are 100% correct here.  If I could, I would buy all the homes I could right now - my wallet dictates that I would be better off just helping others do that :)

Mar 01, 2012 03:51 AM #6
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Rainmaker
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Susan McLaughlin

Monmouth County Real Estate
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