Buffett didn’t hesitate. “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, and it’s a terrific deal,” he said.
He didn’t stop there. “If I was an investor that was a handy type, which I’m not, and I could buy a couple of them at distressed prices and find renters… it’s a leveraged way of owning a very cheap asset now, and I think that’s probably as attractive an investment as you can make now.”
I really don’t get this.
House price to income ratios are at all-time highs. How could be calling housing a “very cheap” asset? Could housing costs really spike more than they have?
I’ve been of the mind that we’re in a housing bubble that’s going to crash sending prices down 20%. I’m no billioniare investor, so what do i know, but still shocking to think that the 1M California starter home is “cheap.”
Yeah, he said it in 2012 apparently.
There are no distressed houses anymore, just distressed people.
Remember when any of these guys makes a statement about investment advice, it’s not something that they want to do but something they will benefit from convincing you to do.