Here's why Warren Buffett thinks you should buy a home

http://www.cnbc.com/2017/03/06/heres-why-warren-buffett-thinks-you-should-buy-a-home.html

The investor took out a 30-year mortgage in 1971 when he bought his Laguna Beach, California, vacation home, which he recently listed for $11 million: “When I bought it for $150,000, I borrowed some money from Great Western Savings and Loans. So I probably only had $30,000 of equity in it or something like that. It’s the only mortgage I’ve had for 50 years.”

A 30-year mortgage is “the best instrument in the world,” Buffett says. “Because if you’re wrong and rates go to 2 percent, which I don’t think they will, you pay it off. It’s a one-way renegotiation. It is an incredibly attractive instrument for the homeowner and you’ve got a one-way bet.”

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I was always voting for 30 year fixed, esp when we hard rates around 3.5%…etc. That was great deal and I do not think we will get such a teasing rate in future.

With a purchase price 150k in 1971 and the home listed at 11 M now, the appreciation rate is 9.787 % year over year. This is one of the remarkable rate !

Similar to Palo Alto…Prime property appreciates the most…But it is hard to get good cash flow…Best for primary residence…

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Less than half the rate of Berkshire.

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Hasn’t sold…Obviously overpriced…The Buffet boost just isn’t there…Old and tired, like the owner…lol…Lots of carpet and laminate counters . probably needs a million in remodeling. …