Suzie Orman vs Warren Buffet. Who's Right Here?
"Orman vs. Buffett: Whose Real Estate Advice to Follow?"
I just wanted to elaborate on the above post I read today. It actually inspired fodder for this post. The truth of the matter is that it's time for America to start humbling down a bit. We had a fun run at not only the RE market but at every other level of conspicuous and flamboyant consumption known to man during the past few decades.
Well, Disneyland is now over folks. It's a Whole new ballgame and it's about time. I don't mean to sound cavalier. I too lost over half the paper wealth I thought I had and earned during the past several decades. Yes, it was painful but I and every other reasonably intellegent human being with a moderate amount of common sense could surely see the writing on the wall.
Sounds to me like Suzie is really saying that investing in a home to turn and burn is in fact a dead horse unless you're dealing with distressed properties and really know what your are doing. But investing in a home that you can afford to buy and hold and raise a family in is and will always be alive and well as long as America stay's America.
As for Warren Buffet? He better be a big proponent of home ownership as he now owns one of the biggest "Factory Built" home manufacturing company's in the world. He's not always right but he's right most of the time. That's why he's the 3rd wealthiest man on the planet.
However, I still contend that it all comes down to the "Affordability Index" and there's a lot of zip codes throughout some of the most geographically desireable places in the USA that are just too expensive for the average wage earning Johnny Six Packer and Linda Lunch Bucket to ever dream of owning. And therein lies the problem. Who's going to fill that void and how long will it take to fill? That's the one trillion dollar + question.