Buffett on housing
The sage's forecast is not good
“There’s no signs of any real bounce at all in anything to do with housing, retailing, all that sort of thing, you never know for sure, even if there’s a leveling off, which way the next move will be.”
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3 comments:
Buying real estate is a complicated process that you do not want to mess up with. It is going to be the most expensive purchase you make in your life. Therefore, make sure you are well educated and understand the entire process.
In the past too many investors have paid insufficient attention to the business they were going into.
Were they speculating to accumulate, or starting a business enterprise?
Speculators start with the property, often sight unseen, with little regard for the location and every regard for the price. They refer to 'Below Market Value' as a key feature and boast about 'no deposit purchases'. They often refer to 'distressed sellers'. Tenants are considered last, if at all. This is just gambling.
Businesses start with the tenant/the customer, seek to satisfy his/her needs, will only buy where tenants want to live and often pay a premium for a property where occupancy will be high.
Both are looking for capital appreciation, but the business primarily seeks customer/tenant satisfaction.
dothesums
http://dothesums.co.uk/blog
I believe residential real estate has substantially improved over late 2008. This is evident all over the Country. Weather or not rates stay together are the key to the near term future.
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