By Jodi Summers
This is an extremely noteworthy comment, as Buffet built his Berkshire Hathaway empire selling securities. “It’s a very attractive asset class,” Buffet continued about single family homes. “If I knew where I was going to live the next 5 or 10 years, I would buy a home and finance with a 30 year mortgage. It’s a terrific deal. It’s a leveraged way of owning a very cheap asset.”
When the “Oracle of Omaha” offers advice, it’s worth a listen…
The Southern California housing market kicked off 2012 with slightly higher sales and slightly lower prices > despite record-low mortgage interest rates. Home sales skewed toward the lower price ranges – normal in the first quarter. The buyer’s market was dominated by investors heeded Buffett’s advice and snapped up homes at a record level. According to DataQuick Information Services, the Los Angeles area sales have increased year-over-year for five of the last six months.
Buffett has been paying close attention to the housing crisis. His company, Berkshire Hathaway, bought portfolios of subprime mortgages and froze their rates, in an attempt to help distressed homebuyers.
Warren Edward Buffett (born August 30, 1930, in Omaha, Nebraska) is an American investor, businessman and philanthropist. He is regarded as one of the world’s greatest stock market investors, and is the largest shareholder and CEO of the insurance and investment Berkshire Hathaway.
A wise businessman, Buffett has also stretched into the green building sector. He recently expanded Clayton Homes, one of his business subsidiaries, to produces a line of green modular homes. These 750-square-foot eco homes, dubbed “i-houses,” can be purchased online for less than $75,000.
In 2006, he announced a plan to give away his fortune to charity, with 83% of it going to the Bill & Melinda Gates Foundation. In 2007, he was listed among Time’s 100 Most Influential People in The World.
Isn’t it time you made your mark? Given today’s historically low interest rates, and property values well off their 2007 peaks, there may never be a better time to invest in real estate.
We’re here to help you with your property needs. Please contact Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby’s International Realty – email@example.com or 310.392.1211, and let us move forward together.
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