Recently on CNBC, Warren Buffett stated that he would buy “millions” of single family homes if he had the means to manage them. The more interesting comment he made during his interview was that houses will be a better investment than stocks over the long term. A powerful comment coming from a person who built his business (and fortune) selling securities. [Watch the video.]
It was also announced on CNBC that pending homes sales in January rose to its highest level since April 2010. This is significant considering that back in early 2010 there was a first-time home buyer tax incentive that helped fuel the housing market.
Warren Buffet didn’t mention that banks lend money on real estate but not on stocks.
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. (credit Marco Santarelli)