Mark Loewenberg PA 561-214-0370: Billionaire says Real Estate is Best Investment Possible

Billionaire says Real Estate is Best Investment Possible

Billionaire says Real Estate is Best Investment Possible

John Paulson KCM

Billionaire money manager John Paulson was interviewed last week at the Delivering Alpha Conference presented by CNBC and Institutional Investor. 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.

Thank you Keeping Current Matters for this story!

Mark Loewenberg PA

561-214-0370

Broker Associate
Keller Williams REALTOR®

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Comment balloon 15 commentsMark Loewenberg • July 23 2014 11:50AM

Comments

Billionaire money manager John Paulson is a sharp cookie.  I'm sharing this with Debbie as we were discussing today other routes other than where we have our funds invested.  Real estate of course came up now you have provided more food for thought.

Posted by John McCormack, CRS, Honesty, Integrity, Results, Experienced. HIRE Me! (Albuquerque Homes Realty) about 6 years ago

Hi Mark.  Billionaire Buffet bought a real estate company.  Stay with real estate.

Posted by Conrad Allen, Webster, Ma, Realtor (Re/Max Professional Associates) about 6 years ago

very true Conrad.. he is in it to win it!

Yes John I like this news!

Posted by Mark Loewenberg, KW 561-214-0370 (KW of the Palm Beaches) about 6 years ago

Real Estate has always been a great investment and you can always see it. 

Posted by Charles Stallions Property Manager, Pensacola, Pace & Gulf Breeze Property Management (Charles Stallions Real Estate Services) about 6 years ago

Very wise and useful advice from John Paulson. You have all hard the old saying that I am repeating, the good thing about land is that they stopped making it years ago". Thanks Mark

Posted by Noah Seidenberg, Chicagoland and Suburbs (800) 858-7917 (Coldwell Banker) about 6 years ago

great article Mark - thanks for sharing in your blog!

sincerely,

Grace

Posted by Jeff&Grace Safrin, SpousesSellingHousesTM (F.C.Tucker 1st Team Real Estate) about 6 years ago

Great advice from someone that knows what a wise investment is.

Posted by 1~Judi Barrett, BS Ed, Integrity Real Estate Services -IDABEL OK (Integrity Real Estate Services 118 SE AVE N, Idabel, OK 74745) about 6 years ago

Mark, it makes a lot of sense for people to buy with these very low interest rates even if they could pay cash, and leverage their money elsewhere to gain a greater ROI.

Posted by Sharon & Bruce Walter, West Lafayette homes for sale (Keller Williams Realty Lafayette, IN) about 6 years ago

Mark good advice.  And with rates this low now would be a great time to buy especially in areas that are still buyer's markets.

Posted by Jennifer Fivelsdal, Mid Hudson Valley real estate connection ( JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571) about 6 years ago

Yes, Mark, he's a wise man and he is absolutely correct about real estate being the best investment.

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) about 6 years ago

Mark- I'd say that Paulson knows a thing or two about real estate investments.  I have to agree,there's only so much land around.  

Posted by Kathy Streib, Home Stager - Palm Beach County,FL -561-914-6224 (Room Service Home Staging) about 6 years ago

Owning a home is the best way to create family wealth.

Posted by Roy Kelley (Realty Group Referrals) about 6 years ago

Thanks for introducting 

John Paulson! Appreciate the info and have to agree

Posted by Julie Baldino, Opening Doors to New Chapters... (Front Door Realty) about 6 years ago

I would have to agree with that.  It just makes no sense to pay rent if you can afford to buy even the smallest home and get started on the property ladder.

Posted by Georgie Hunter R(S) 58089, Maui Real Estate sales and lifestyle info (Hawai'i Life Real Estate Brokers) about 6 years ago

It is really nice to have your own house than to live in a rental place. Yet, I believe, it is better to have a larger down-payment( at least 20%).

Posted by Inna Ivchenko, Realtor® • Green • GRI • HAFA • PSC Calabasas CA (Barcode Properties) about 6 years ago

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