Buffett: ‘I’d buy up a couple hundred thousand’ homes
WICHITA, Kan. – March 1, 2012 – Warren Buffett, the billionaire investor and Berkshire Hathaway CEO, said on CNBC’s “Squawk Box” recently that he’d “buy up a couple hundred thousand” single-family homes if it was practical.
Buffett said that’s because he believes purchasing a home with ultra-low mortgage rates and holding it for the long-term has become a better investment than stocks right now.
“Housing will come back, you can be sure of that,” Buffett wrote in his annual letter to shareholders recently.
Buffett forecasts an increase in household formations, as more people who moved in with their parents or family members during the recession look to move out and get their own home soon.
Buffett said the recovery in the housing market could vary quite a bit among local housing markets, however.
Investors are making up over 30% of purchases-most are everyday people
Recently it was announced the average investor-cash buyer is not who you think. It is not the Donald Trumps of the world buying properties. The next wave in real estate is coming from everyday investor buyers!
According to NAR, the majority of investor business comes from everyday people. Their average total household income is less than $87,600 a year. Which is basically two people making $43,000 a year.
That means teachers, lifeguards, and even government employee's are buying investment properties.
Friday, March 2, 2012
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