My colleagues, Christopher and Stephanie Somers of Philadelphia posted these comments of Warran Buffet's.
Another reason for action now--if this is a good time for you--is that at the end of September the jumbo conforming loan limit here in our high-cost counties in California will drop form $729,750 to $625,500. What does that mean? If you are borrowing more $625,500, loans will be much more expensive, and likely harder to come by.
The Oracle on Housing
I love listening and watching interviews of Warren Buffet. I think we all can learn a lot from him. It is hard to argue with his success. When the financial crisis hit and he bought shares of Goldman Sachs, pundits were saying why ? A few years later that investment is up substantially. He had the last laugh...
So when he was on CNBC recently and asked about housing, my ears perked up. His quote was clear:
"If I was renting and had money saved up for a down payment, I would buy a house in a minute."
Thus, for anyone on the fence out there, and all of the investment advice you seek from the "professionals", I would probably listen to the Oracle, Mr Buffet. Get out there and buy a house. You will be thanking both myself and Mr Buffet five years from now !
On a side note, in speaking with my parents the other day, who are in there 80s, they reminded me that they are closing on their condo in Virginia in a few weeks and locked in on their rate that day at 4.5 percent. They have owned several houses over the years and were thrilled that they were able to get the best rate ever in their lifetime. Congrats to them. No reason to "wait it out" ! As with Mr Buffet's Goldman Sachs investment, everyone locking in with 30 year fixed rates of 4.5 percent and low home price (cost basis) will be having the last laugh a few years from now....
photo by Alex Crippen / Bloomberg