Warren Buffett Would Invest In US Property – US REAL ESTATE TV
I would say the single family homes are cheap
now too. Single family homes, if I had a way of buying a couple of hundred thousand single
family homes and had a way of managing. The management is enormous; it’s really a problem
because they’re one by so they’re not like apartment houses. So, I would load up
on them, I would take mortgages out at very very low rates but if anybody’s thinking
about buying homes five years ago they couldn’t buy them fast enough because they thought
they are going to go up and now they don’t buy them because they think they’re going
to go down and interest rates are far lower. 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 refinanced lower and if turns out it’s too low the other guy’s
stuck with it for 30 years. It’s a very attractive asset class now.
If you are a young individual investor at home and you have a choice between buying
your first home or investing in stocks, where would you tell someone it is a better bet?
If I thought I was going to live, if I knew I was going to live in the next 5 or 10 years,
I would buy a home and financed it with a 30 year mortgage. It’s a terrific deal.
And if I, literally if I was an investor that was a handy type, which I’m not and I could
buy a couple of them at the stress prices and find renters I think that’s, and again
take a heard on your mortgage, it’s a leverage way of owning a very cheap asset now�