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The Most Zombie Friendly Cities
In life some people are the eaters, and the others are simply eaten – that is, if you find yourself in the midst of a Zombie Apocalypse. It being close to Halloween and all, it appears Trulia has decided to … Continue reading → Continue reading →
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Billionaire Says Real Estate is Best Investment Possible
Billionaire money manager John Paulson was interviewed at the Delivering Alpha Conference presented by CNBC and Institutional Investor. During his session he boldly stated:
"I still think, from an individual perspective, the best deal investment you can make is to buy a primary residence that you're the owner-occupier of.”
Who is John Paulson?
Paulson is the person who, back in 2005 & 2006, made a fortune betting that the subprime mortgage mess would cause the real estate market to collapse. He understands how the housing market works and knows when to buy and when to sell. What do others think of Paulson? According to Forbes, John Paulson is:“A multibillionaire hedge fund operator and the investment genius.”According to the Wall Street Journal, Paulson is:
“A hedge fund tycoon who made his name, and a fortune, betting against subprime mortgages when no one else even knew what they were.”
Why does he believe homeownership is such a great investment?
Paulson breaks down the math of homeownership as an investment:"Today financing costs are extraordinarily low. You can get a 30-year mortgage somewhere around 4.5 percent. And if you put down, let's say, 10 percent and the house is up 5 percent, which is the latest data, then you would be up 50 percent on your investment."How many are seeing a 50% return on a cash investment right now? Paulson goes on to compare the long term financial benefits of owning verses renting:
“And you’ve locked in the cost over the next 30 years. And today the cost of owning is somewhat less than the cost of renting. And if you rent, the rent goes up every year. But if you buy a 30-year mortgage, the cost is fixed.”
Bottom Line
Whenever a billionaire gives investment advice, people usually clamor to hear it. This billionaire gave simple advice – if you don’t yet live in your own home, go buy one.#1 Reason You Should Sell Now
The price of any item (including residential real estate) is determined by ‘supply and demand’. If the supply of an item is larger than the amount of people looking to purchase that item, the price will decrease.
According to the National Association of Realtors (NAR), historically there is a natural decline in buyers looking to purchase a home (also known as foot traffic) as the winter months approach. Shown in the graph below:
NAR goes a step further to say that there is a direct correlation between “foot traffic” and “pending contracts/closed sales one to two months later”.
Bottom Line
The real estate market has done well to recover from the slow start we experienced due in part to the inclement weather at the beginning of 2014. But with those winter months right around the corner, now may be the best time to get the best price.Pumpkin Carving Ideas
Halloween is just around the corner and pumpkin patches across the nation are already displaying their bounty. Be sure to grab your gourd and take a look at the carving ideas below: 24 Downloadable Pumpkin Carving Ideas! Includes faces of … Continue reading → Continue reading →
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