Buffer says "Buy single family homes"

Buffet said he liked single family homes as good asset right now and said that “if I had way of buying a couple hundred thousand single-family homes.”

CLICK HERE for entire Buffett interview with CNBC

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Read below his entire comment on housing.

“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 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.” - Buffet 02-27-12

On investing in homes

“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. But I think equities are very attractive compared to anything else.”  - Buffet 02-27-12

CLICK HERE for entire Buffett interview with CNBC.  To skip to the housing conversation go to the 5:00 minute point to the video.

There are many reasons you may wish to buy a home, whether you need or want:

On the other hand, you may not be ready to buy a home. Buying a home:

The purchase of a home is, in part, a financial transaction.  Much like a trip to the grocery store to buy coffee, you have many choices and a significant price range. But unlike a bag of Costa Rican coffee, a house has certain bonuses: Equity, Tax Savings and Ownership.  What’s all that mean? Read on.  

A house is an investment in land and the existing structure.  History tells us that there is a good chance that a house will increase in value over time.  Also, by making timelymortgage payments, you are paying down the debt you owe and building equity.  Equity is the difference between the value of your home and how much you still owe.  You may not own your home outright, but your investment has a cash value. 

In addition to increasing in value over time, owning a home can have a significantimpact on your monthly paycheck – in a very positive way!  When you borrow money to purchase a home, the interest that you pay on that money is usually tax deductible.  

 For example, if you have an annual income of $45,000 and owe $200,000 on a 30-year mortgage at a fixed 7% interest rate, you’ll likely save about $200 per month intaxes the first year you own the home!