When Warren Buffet met with his shareholders in Omaha, Nebraska, last week, he spoke about many things but the one thing that interested me was his take on real estate.
He believes that the government plans to help the economy are good and necessary but that it will ultimately, cause inflation. Inflation is good for real estate because, as Warren Buffet, said a family puts down 20% and finances the rest for 30 years, that payment will remain the same even though the family’s income will rise. This will enable the family to invest, buy needed goods and services and have a higher standard of living.
On the other hand, if that same family rents, everything changes. In inflationary times, rents start to soar, any increase in income can be eaten by the increased cost of housing and there is no protection against inflation.
He is not the only one telling people to buy real estate, now. Donald Trump also has been expounding the virtues of buying now. When interviewed, he has been saying that the values that he sees haven’t been here before and may not be here again.
There are 52 foreclosures in Aventura. Call to see some!!