The Oracle of Omaha says that now is the time to invest in residential real estate.
A little more than five minutes into a CNBC interview, Warren Buffett said that single-family homes are a good investment.
“If I had a way of buying a couple hundred thousand single-family homes, and had a way of managing — the management is enormous, is really a problem because they’re one by one, they’re not like apartment houses — but I would load up on them,” the billionaire said. “I would take mortgages out at very, very low rates.
“But if anybody’s thinking about buying a home, five years ago they couldn’t buy them fast enough because they thought they were going to go up.”
Buffett noted that borrowing at today’s low interest rates is a way to “short” the U.S. dollar since borrowers can get a fixed rate for 30 years and just refinance if rates go lower, whereas lenders can be stuck with a low yielding investment for 30 years if rates go up.
