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Mar
5th

Warren Buffet says homes are a great investment now.

Reserve at Gearhart

 On February 27th, 2012 Warren Buffet – “The Oracle of Omaha” was being interviewed on CNBC by Becky Quick. She was asking him about various asset classes and which were attractive in today’s economy.

WARREN BUFFET: I would say single family homes are cheap now too.

BECKY QUICK: You would?

BUFFETT:

Yeah, single-family homes; but if I had a way of buying a couple hundred thousand single-family homes and had a way of managing - the management is enormous – is really the problem because they're one by one. They're not like apartment houses. So -but I would load up on them and I would - I would take mortgages out at very, very low rates. But 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. It's a way, in effect, to short the dollar because you can - you can take a 30-year mortgage and if it turns out your interest rate's too high, next week you refinance lower. And if it turns out it's too low, the other guy's (*) stuck with it for 30 years. So it's a very attractive asset class now.

BECKY: If you are a young individual investor at home and you have your choice between buying your first home or investing in stocks, where would you tell someone is
the better bet?

BUFFETT: Well, if I thought I was going to live - if I knew where I was going to want to live the next 5 or 10 years I would - I would buy a home and I'd finance it with a 30-year mortgage, and it's a terrific deal. And if I literally, 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, I think that's - 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 an attractive an investment as you can make now.


(*) The Lender

The entire transcript of the interview can be seen at:

http://www.scribd.com/doc/83112097/CNBC-Transcript-Ask-Warren-Buffett-February-27-2012

Oregon Coast homes close by an 11 mile long white sand beach are great values right now. New homes are being constructed by quality builders for purchase and move-in at this time. Ready building lots are also available for a buyer to plan a beautiful custom home in the lovely, quiet town of Gearhart. Clamming, surfing, fishing, beach combing, golf course access and views, and many other recreation activities are nearby The Reserve at Gearhart. Lot investments start at $70,000 for a beautiful, 10,000 + square foot homesite. Finished homes are available from $375,000 featuring custom designs and upgrades above and beyond the standard builder spec home.A wildlife conservancy adjoins the community and is the home to deer, elk, eagles, heron, and other local species. The rolling surf of the Pacific Ocean fills the area with soothing sound creating a relaxing atmosphere. This is the perfect place for a summer home or to plan on for future years.

 

Added on 03/05/2012

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Oregon Coast Living by Blog

 

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10,000 square foot and larger lots in Gearhart, right on the Oregon Coast - ready to build - start at $95,000. New homes from $400's. The Oregon Coast has not seen values like this in a generation .Invest now before rates begin to climb.

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