BUFFETT: “Well, if I knew where I was going to want to live the next five or 10 years 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.”
** Remember, this is an investor who has made billions owning and investing in stocks and went on to say, that currently, the best asset to own now for the next 10 years is real estate. Warren Buffett stated that housing prices have bottomed, mortgage interest rates are at historic lows and rents have increased dramatically. This is the perfect situation for anyone wanting to own a home and rent it out.
Examples of 20% Down Payment Single Family Residence Non-Owner Occupied
$250,000 Sales Price $50,000 Down Payment $200,000 Loan Amount
$983 Principal & Interest 30 Year Fixed Rate Loan at 4.25% $229 Property Tax (1.1%) $ 75 Hazard Insurance --------------------------------- $1,287 Total Payment
$1,500 Rent Payment $213 Positive Cash Flow
$400,000 Sales Price $100,000 Down Payment $300,000 Loan Amount
$1,475 Principal & Interest $ 366 Property Tax (1.1%) $ 100 Hazard Insurance -------------------------------- $1,941 Total Payment
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