Warren Buffett Said Buying ‘Distressed’ Homes With 30-Year Mortgages And Renting Them Out Might Be The ‘Most Attractive’ Investment Available
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If you remember 2008, you will also remember fear. Home values were collapsing. The debtors were default. The phrase “underwater mortgage” was everywhere.
However, until 2012, progress quickly and said to Warren Buffett CNBC viewers something that no one expected to hear: Housing – yes, housing – was one of the best investment opportunities available.
During CNBC’s three -hour “Warren Ask” Squawk Box SpecialHost Becky Quick asked Buffett a question about daily investors:
“If you are a young individual investor at home and if you have a choice between buying your first home or investing in stocks, how would you say that someone is better bet?”
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Buffett did not hesitate. “If I knew where to live in the next five or 10 years, I would buy a house and finance it with a 30 -year mortgage, and this is a great deal.”
He didn’t stop there. “If I were an investor with a useful genre and could buy a few of them at troubled prices and find tenants …
Then the houses were really cheap. After the accident, prices were reduced, mortgage rates approached 3.5%and sitting without touching the properties, waiting for someone with courage and a vehicle set.
Buffett clearly stated that he wasn’t that man. Her daughter Susie already joked once Find the light switch in their homes. He understood the mathematics of real estate, not manual labor. Nevertheless, the message was simple: if you had skills and long -term vision, it was a rare opportunity to buy a house in 2012.
In 2025, mortgage rates exceeded 6.7%, According to Freddie MacMaking monthly payments significantly more expensive than a few years ago. Meanwhile, housing prices are rising. Zillow, typical US home value June was around 369.000 dollars-The year is 0.5% compared to the same time and still more than 30% of pre -pandemic levels. He hesitates to list sellers with mortgage rates below 4 %, and many buyers are sitting, they cannot buy or buy at current prices and borrowing costs.
