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!