Tag: homes

Warren Buffet on Housing

Someone with BlackRock and others must have heard Buffet’s housing statements and now own many homes. A GOP person around 2020 that it was planned to buy homes in whole suburbs , in order to stop the ethnic races from buying.

I don’t like nor trust Warren Buffet $$$$

Warren Buffett said he’d buy a couple hundred thousand single family homes if he could, and he’d take out mortgages to do it.

In 2012, Warren Buffett made headlines with his bold commentary on the housing market during an interview on CNBC’s Squawk Box with Becky Quick.

At the time, the U.S. economy was still recovering from the devastating effects of the 2008 financial crisis and the housing market was one of the sectors with the most impact. Yet, Buffett’s perspective was unusually optimistic. He famously stated, “If I had a way of buying a couple hundred thousand single-family homes and had a way of managing them … I would load up on them. I would take mortgages out at very, very low rates.” For Buffett, homes were not just shelter but a prime investment opportunity, especially with borrowing costs at rock-bottom lows.

This insight came when confidence in real estate was shaky at best and many people hesitated to dive back into the market. However, for Buffett, the crisis created a window of opportunity that savvy investors could capitalize on if they had the foresight and patience.

His well-known quote, “Be fearful when others are greedy. Be greedy when others are fearful,” perfectly captured the mindset needed to navigate that turbulent time. Investors who followed this advice likely saw significant rewards as the market rebounded.

For example, in 2012, the median price for a single-family home in the U.S. was around $180,000. By 2024, that number reached about $418,000. That’s a jump of roughly 132% over 12 years. No one has a crystal ball to predict what the market will do, but real estate has proven to be a steady and stable way of building wealth.

its simplicity. He recommended buying homes with a 30-year mortgage, arguing that homes would outperform even stocks if purchased at the right price over the long term.

Over the years, the billionaire investor has consistently praised the 30-year mortgage. In a 2017 CNBC interview, he said, “It’s a one-way renegotiation. It is an incredibly attractive instrument for the homeowner and you’ve got a one-way bet.” If the rates go down, refinance and pay off the home early. If they go up, you’re locked in.

Fast-forward to 2024 and it’s clear why Buffett’s advice has endured. The housing market has changed dramatically since 2012, with home prices surging in many regions and interest rates rising after years of historical lows. In today’s market, buying “a couple hundred thousand homes” might sound like a distant fantasy for the average investor.

As interest rates fluctuate and many prospective homeowners face uncertainty about where the housing market is headed, Buffett’s advice to think long-term remains as relevant as ever. Holding properties for the long haul, rather than trying to time the market, is a strategy that still pays dividends.

2008 Finance Wall Street Bail out

Long before 2008 the US was in a decline . My experience began in 2004 , and selling my town house below $124,000 discovered the leap in home values and tripled prices . The homes I was shown were sad and I bought one , unaware of a multitude of problems .

I wanted out within days of moving in , and my agent laughed and said I had to stay there a2 years to recoup my money . This house was $124 k and all I could afford .

I sold it for $137,000. and a creditor’s lien took $5,000

The tax assessment came and it valued house at &142,000.

The ” flipping ” of homes was surreal , An older guy a few houses up committed suicide and his daughter cleared possessions saying she had 4 houses to deal with . It was sold in the court house steps . Old guy chose to take his life in his truck .

I was quoted $172 initial listing LOL

That was determined as an event of 2008 , my self and many others I spoke too had major housing problems with no one interested in resolutions .

That home of 2 years was Heaven and it was Hell and I pity the older gal who bought it as deal and had no concept of what needed to be done . She cut down Camellia bushes down out front , gracing the front and which are rarely seen .

I moved into a town house owned by an alcoholic , as he evicted a woman of color . I worked with her to get her things . Upon moving in there was broken glass and more to be dealt with . He fixed nothing and had my storage space full of his work related stuff. He said he photographed sports teams etc

I considered he was into porno but I scooted out of there pretty quick .

It was discovered that the Realtor – Insider began this housing nightmare 2008

I’m going to be very careful in selecting an agent .

Foot Note

The agent who sold me the nightmare house , committed suicide about 3/4 years ago . She was addicted to Xanax , had taken charge of 2 step daughters , and slammed more that a few people with her representation.

youtube.com/watch