In an interview with CNBC, Warren Buffett has gone on record saying that single family homes are currently the best investment. Due to low interest rates and low prices, he feels there is not a more appealing asset class at the present moment. In fact, he even goes so far as to say that he would “load up on them” if he had a way to manage them, admitting that management poses a challenge since they are individual homes, unlike condos.
So why aren’t buyers snatching up single family homes at lightning speed? It boils down to consumer/buyer psychology:
“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 rates are far lower.”
Buffett goes on to spotlight the huge benefits to investors:
“… if I was an investor that was a handy type, which I’m not, and I could buy a couple of them at distressed prices and find renters — and again take a 30-year mortgage — it’s a leveraged way of owning a very cheap asset now and I think that’s probably as attractive an investment as you can make now.”
Long story short, NOW is a great time to buy, but move fast because interest rates are creeping up and will continue to do so. The EMA Real Estate Group is your local expert when it comes to investing in real estate. Take advantage of our new One-on-One Real Estate Investing Consultation where you’ll be provided with personal advice and suggestions regarding the real estate market in the DC Area and Maryland.
Emcee Arah - "the REALTOR with Architectural Dimension" – is a Certified Investor Agent Specialist (CIAS). He is uniquely equipped to assist you in navigating today's residential real estate market. Contact him online or by phone at (301) 452-5252. And leave your comments below – he'd like to hear from you.