Why is John Paulson Telling me to Buy a House and Why Should I Care?

Maybe this is a San Franciso Bay Area thing, but this post by Cece Blase captures what we're seeing here in our area of California - San Franciso and San Mateo Counties, especially. This fall buyers seem to have gotten the message and are finding bargains and buying some wonderful homes for themselves and starting to create their future.

 

"If you don't own a home, buy one. If you own one home, buy another one. And if you own two homes, buy a third and lend your relatives the money to buy one."  - John Paulson 9/27/2010

WOW! That's a powerful statement. So who is this John Paulson guy anyway? And why should we care what he thinks?  

Well, Paulson is a multibillion hedge fund operator who made a killing going short on subprime mortgages a few years ago. He saw the train wreck coming, which is more than most of us can say. He understood the dangers of the subprime market before we even really understood what this subprime mess was about. I think this is a fairly decent indicator that he knows more about real estate investing than most of us. He understands how the housing market works and knows when to buy and when to sell. What do others think of Paulson?

The Wall Street Journal agrees with Paulson:

Ignore the critics. The odds have to be on his side...It isn't just that home prices have fallen a long way. It's also that, if you can get a mortgage, you are basically taking a reverse bet on the bond market. You could be a long-term borrower at fixed rates, instead of a long-term lender. Right now you can borrow for 30 years at around 4.3%. After the mortgage tax deduction, for some people the net effective interest rate is nearer to 3%. That's going to prove an awesome deal if we see inflation again.

And so does Forbes:

As this is the best time in 50 years to buy homes, Paulson advised his listeners to take 30 year mortgages to buy a home as "your debt and interest payments get locked in at record lows, while the price of your home will rise."

Bottom line? Friends and family members doing that 'chicken-little' dance about how it's not the right time to buy may not be the best qualified people to offer advice right now. Instead, it may be time to listen to people who better understand the opportunities that are out there right now.

Dreaming of San Francisco? Cece Blase offers local Advice to San Francisco Buyers, Sellers and Owners-- and feeds the dreams of those who wish they could live in Tony Bennet's 'City by the Bay.' Call or email at 415-577-0809 or email at cblase@paragon-re.com. www.ceceblase.com

--- Come for a visit; Stay for a lifetime!

Lottie Kendall, Realtor®

Pacific Union International

CA DRE#10215160; 650-465-4547

Lottie@LottieKendall.com

www.LottieKendall.com

Peninsula Living Business Page

www.SFCondosForMe.com

 

 

Comment balloon 14 commentsLottie Kendall • October 09 2010 01:39AM
Why is John Paulson Telling me to Buy a House and Why Should I Care?
share
Maybe this is a San Franciso Bay Area thing, but this post by Cece Blase captures what we're seeing here in our area of California - San Franciso and San Mateo Counties, especially. This fall buyers seem to have gotten the message and are finding… more
Homes for Sale in San Carlos, Belmont, Redwood City and beyond
share
This morning I was researching purchase possibilities for a potential client wanting to buy a 4-bedroom home in the California towns of San Carlos, Belmont, Menlo Park or the hills of Redwood City This is what our MLS Listings has for us: San… more
Wordless Wednesday--well, not quite
share
Wordless Wednesday - well, not quite wordless This is a photo taken by Blanche Shamoon on one of her hikes on the slopes of Mt. Tamalpais in Marin County, CA. After a long, dry summer, our hillsides are golden brown; in a few weeks the first… more
What a Week! Life of a Realtor in San Mateo County and the Silicon…
share
What a Week! Are you ever asked, "what's your day like? " The life of a Realtor in San Mateo County and the Silicon Valley is so varied it's impossible to answer with any accuracy, I can only say what I've planned for the day. By 8:00 AM… more
Today | Sotheby's International Realty
share
Today | Sotheby's International Realty Yesterday was a busy day for us here in San Carlos, California - our office became Today | Sotheby's International Realty As our brokers Jeanne Garde and Jim Meader proclaim: "welcome to our future! "… more