Many people consider Warren Buffett to be the greatest investor of the last century – someone whose opinion is worth hearing.
In an interview with CNBC’s Becky Quick last Monday, he had some very encouraging things to say about the housing market:
…if I had a way of buying a couple hundred thousand single-family homes and had a way of managing… I would load up on them and I would— I would take mortgages out at very, very low rates. But if anybody is thinking about buying a home— five years ago they couldn’t buy them fast enough because they thought they were going to go up, and now they don’t buy them because they think they’re going to go down. And interest are far lower. It’s a way, in effect, to short the dollar because you can— you can take a 30-year mortgage and if it turns out your interest rate’s too high, next week you refinance lower. And if it turns out it’s too low, the other guy’s stuck with it for 30 years. So it’s a very attractive asset class now.
So there you have it! This is something we should be shouting from the rooftops.