1. The basic premise of a property : That the value of the homes increase over time, is healthy.

“The belief that the value of housing goes up through time is true, because the dollar is worth less.”

Buffett raised his conviction that the real estate bubble was inflated by an irrational belief, and widespread that the price of the single house rises house buyers houston, then people abuse and get excited about the premise and buy properties with loans granted by banks and then They can not pay.

“The premise was distorted and caused the crisis when the Americans began to buy several houses to take advantage of it,” Buffett said.

  1. Buy under

A prudent moment to buy a house is “the light of the accessibility record”.

When property prices are low, the best investment that can be made is the purchase of a house. When? At times when the market is not well and the interest on loans is diminished.

Buffett pointed out his own management, as owner of a house as an example: “After all, the third best investment I made was the purchase of my house, although I would have made much more money if I had rented the place and used the money of the purchase to buy shares “. The best investments of Buffet? He clarified that number one and two were wedding rings.

  1. Do not wait too long to take advantage of Low Prices.

Although it is better to buy a property when it is as low as possible, it is important not to wait long because the market is unpredictable and you can raise the price again and soon!

While prices are low, buying is stressful, since economic markets are volatile and impossible to predict in the short term, even for Warren. Therefore, when the conditions of making an investment – in stocks or in a home – are especially advantageous, Buffett says that he does not hesitate a long time to decide: he warns, “if you wait for the robins, the spring will be over.”

  1. The smart way to own a home has three elements.

Fixed mortgage, accessible payments and long-term retention.

The most important thing is to make sure that the property that one is buying can be paid, that one will be happy and will want to live in it if the market closes for ten years. “This was the big mistake of a lot of people in the US.”

Buffet lives in the same house that he bought 52 years ago at $ 31,500 which today is worth approximately $ 50 billion. This is the final difference between a solvent and smart buyer and the purchase of the homes that brought the real estate bubble to the US.

  1. Buying the “Home of your dreams” can lead to nightmares.

The house of your dreams can end up hurting you if you do not buy consciously. With bank loans it may seem easy to pay a high price but then it results in fees that are impossible to pay.

Buffett warned that “a house can be a nightmare” if the buyers’ eyes are larger than their wallet. The most important thing is to buy a house that can be paid, then you can transform it into the home of your dreams … but then!

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