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Warren Buffett Speaking on Real Estate Investments in 2012

Warren Buffett says along with equities, single-family homes are a very attractive investment right now.

Appearing live on CNBC recently Buffett says he’d buy up “a couple hundred thousand” single family homes if it were practical to do so.

If held for a long period of time and purchased at low rates, Buffett says houses are even better than stocks.  He advises buyers to take out a 30-year mortgage and refinance if rates go down.

Buffett on the Economy

Aside from the housing sector, Buffett says the U.S. economic recovery is healthy and won’t be derailed by rising oil prices.  He repeated what he’s been saying throughout the recession, that it’s always been a “terrible mistake” to be pessimistic on the U.S. over the long term.

Buffett says that except for its housing units, Berkshire’s businesses have increased their hiring and that each business will have more employees at the end of this year than they did at the start.

 

 But for the nation, he wouldn’t be surprised if the unemployment rate returned to nine percent.

Buffett says that in “hindsight,” he now thinks the government’s bailout of the U.S. automakers was one of the best things to happen to the economy.

Just one of many indicators of the country in recovery after the past few years of being down.  In certain areas such as our area of Lakeland/Winter Haven we have gone past recovery and have begun to see price increases again and in the near future it is expected that we will experience a shortage of homes and lots which will create a situation of supply not meeting demand and the prices go up farther.

Don’t delay buy soon while prices are decent and interest rates are at an all time historic low!

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There Seems To Be A Common Theme These Days In the Real Estate Market……..NOW IS THE TIME TO BUY!

Here is an excerpt from a recent article in Builder magazine.  It shows what has become the new theme which is telling me ( or is it a warning?) that it is time to buy.  Everything points to recovery in our real estate market, certainly here in Polk County, Fl with all the new jobs being created and the accompanying growth that goes along with that.   Are prices going to increase at a rate we saw in 2005? NO but they are not going to fall and the interest rates are at an all time low so take advantage of the lower pricing now before they start to rise and enjoy a historically low interest rate for the next 30 years!

  • From: BUILDER 2012
  • Posted on: January 20, 2012 1:13:00 PM

Former Housing Cynic Chris Thornberg Says It’s Time to Buy

To support his optimism, the economist points to high levels of affordability, declining delinquency rates, and shrinking supply.

 
Back in 2007, when some hopeful real estate professionals were broadcasting that the time was right to jump into homeownership, Chris Thornberg wasn’t among them. Shortly after the National Association of Realtors launched a campaign that year emphasizing that it was a great time to jump in, Thornberg, the founding principal of Los Angeles-based Beacon Economics, responded with an interview with TheOrange County Register. “What’s the point of buying today when you can buy it for 10% less in a year?” Thornberg said.

He had a point.

But these days he’s feeling quite different. “When you look at interest rates and the price of homes relative to people’s income, you see affordability is really, really good right now,” he told Builder in a phone interview this week. “In a lot of markets in the U.S., the degree to which affordability has improved makes this a time that you want to get involved in the market.”

 

Call me I will show you how you can be in a home with little or No money down for close to or less than what you are paying a Landlord right now!

Janet Backman
New Home Specialist
Southern Homes of Polk County

866-575-4562

 

 

 

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Check Out This Chart and Know It Is Only Going Up From Here!

If you can buy a home with $495 down and $0 closing costs there should be nothing holding you back! Why wait until the prices and interest rates rise?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stop Paying Rent in 2012! Call me today to find out how. 866-575-4562

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It Can Only Go Up From Here, So JUMP Off The Fence!

 

According to a recent report in CNN Money the modest housing market winning streak continued as the Census Bureau reported Friday that sales of new homes rose again in November to an annualized rate of 315,000.

That was up 1.6% compared with the revised October rate of 310,000 and 9.8% higher than November 2010.

 The good news followed other recent positive industry reports. November sales of existing homes rose 12% year-over-year; homebuilding spiked nearly 21% compared with 12 months ago; and mortgage rates hit record lows this week.

The sales hike was in line with expectations: The forecast from Briefing.com was for a 315,000 annualized rate.  The median price for a new home was $214,100 in November. Inventory shrank to 158,000 units, a 6-month supply at the current sales rate.

 

 Should you buy a home in 2012?

New homes sales are particularly important because they have a large impact on the overall economy, said Bob Denk, senior economist with the National Association of Home Builders.

“Inventories of new homes are very low: There’s nothing on the shelf, so any increase in new home sales will translate directly into new housing starts,” he said. “That means putting people back to work.”     Residential housing construction has been a missing link in the slow economic recovery. Denk described conditions as still slow but “generating momentum.” He expects steady but modest improvement through 2112 with a more robust recovery coming in 2013. To top of page

Waiting means paying more! Call me today to learn how to buy NOW with little or NO money down and NO out of pocket closing costs!!

Janet Backman
Southern Homes
866-575-4562
janetbackman@mysouthernhome.com

 

 

 

 

 

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More Great News For Polk County! We Are Seeing Growth All Over and Now New Jobs!!!

Coca-Cola Invests $99 Million to Expand Auburndale Facility; Adds 60 New Jobs in Polk County 12/21/2011 AUBURNDALE, Fla. – Governor Rick Scott announced that Coca-Cola Refreshments is investing $99 million to expand its Main Street juice production facility in Auburndale. The expansion also includes adding 60 new jobs in Polk County with an average compensation above both the county and state averages. “Coca-Cola’s choice of Auburndale for its expansion is a testament to the state’s supportive business environment and strong capabilities for serving corporate and manufacturing needs,” said Governor Scott. “It’s also an outcome of our city and county partners’ commitment to growing Florida’s manufacturing base to build a healthier economy.” As part of the $99 million investment in the 720,000-square-foot facility, the company is adding another juice production line for Simply, one of Coca-Cola’s fastest growing brands. Additional facility improvements include manufacturing, telecommunications and technology upgrades, along with expanding the size of the facility more than 20 percent. The State of Florida paved the way for the expansion by granting Polk County $400,000 from its Economic Development Transportation Fund for road infrastructure needs pertaining to the expansion. The state also awarded Coca-Cola with incentives from the Qualified Target Industry Fund, which if used in full, would value $180,000 in tax rebates, of which 20 percent will be provided by the City of Auburndale and Polk County. “Through Coca-Cola’s public-private partnership with the State of Florida, Polk County and the City of Auburndale, we are putting more people to work and strengthening the local community,” said Troy Ellis, Senior Vice President, Manufacturing for Coca-Cola Refreshments. “While Coca-Cola is a global company, we are integral parts of the communities where we operate and our associates live and work. This investment strengthens our ties to Auburndale, Polk County and the State of Florida.” Sam Johnson, chairman of the Board of Polk County Commissioners said, “Coca-Cola is a model corporate citizen in Polk County and we are thankful for the positive impact it has on our local community by putting people to work and investing in our community.” Construction first began on Coca-Cola’s Main Street facility in June 2002, and production of Simply Orange started in the summer of 2003. Since breaking ground, Coca-Cola has invested more than $450 million, including this most recent announcement, to upgrade the facility and expand production capacity to meet consumer and customer demands. The 60 new jobs will be in addition to the 361 full-time associates Coca-Cola currently employs at its Main Street facility. “We are so pleased that Coca-Cola Refreshments chose to expand operations here in Auburndale,” said the city’s mayor, Keith Cowie. “Coca-Cola has proven to be a great business neighbor to the Auburndale community. The jobs are so important to improving the economic climate here in Polk County.” Polk County Manager Jim Freeman added that “especially during a time of high unemployment, we are grateful for companies like Coca-Cola, which continues to reinvest in our community and provide sustainable employment for our citizens. Coca-Cola’s commitment in Polk County matches our commitment to maintain a strong business climate.” Coca-Cola employs more than 6,000 people throughout Florida in 34 facilities, including seven manufacturing plants and 15 distribution centers

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Who Needs To Buy Someone Elses Headache?

If you have been out pounding the pavement looking at the short sale/foreclosure market I am sure you have come across some real “charming” homes and I say that in the most sarcastic of ways!   Isn’t it just amazing how people cannot make the mortgage payments and then decide to take it upon themselves to rid the  home of the toilet bowl, cabinets, kitchen sink or wood flooring? Never mind the windows and anything else that might have value!

Plus depending on where you live some of those “charming ” homes sit empty for years before the bank finally takes them over.  I can tell you that in Florida it is not a pretty sight having a home in this heat sit empty without air conditioning running.  It creates condensation which creates mold and a whole slew of problems.  Of course by the time you see the home the bank has had their team come in with gallons of “Kilz” and Voila! it is semi pretty with some nice white fresh paint and cleaning.  How sweet of them, right?  WRONG!

A bank does not have to disclose, meaning they do not have to tell you the house sat for two years or that there was mold covering the floors and walls. So buyers beware!

Only a brand new home offers peice of mind which is a valuable thing when you are paying over $100,000 for a home!  Not only is everything brand spanking new that you got to pick out;  it is also up to date and in line with the current building codes.  At the same time, today’s new homes are engineered specifically to minimize maintenance requirements and have more protection against hurricanes and other natural disasters per stricter building codes.

When you buy a used house you don’t know what you are getting, you might have to do a lot of maintenance, most new home builders are trying to look down the road and make things as easy as possible for the homeowner so they can enjoy living there and not have to be saddled with maintenance.

Buy piece of mind with your home purchase, buy New!