What if Mr. Buffett´s prediction is right?

Let´s assume for a moment that his prediction of a US housing recovery sometime in 2011 is correct and let´s also bear in mind that people who have betted against him in the past haven´t done so well.

Is it better to wait until 2011 and start investing in property once prices start recovering? Or might it be worth using some money sitting in a (very) low interest savings account to purchase well priced high quality properties while they are still available?

It´s been a crazy 18 months in the real estate business, but as the Sage of Omaha himself said “Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it”.

Translation: These fluctuations caused a flood of motivated sellers to appear. They won´t stay so motivated indefinately.

Kind Regards

Colin Murphy

www.torcana.com

Tags: distressed property, House price statistics, Torcana, Warren Buffett

This entry was posted on Monday, March 15th, 2010 at 10:56 am and is filed under General Opinion, USA Property. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.