realestate

Buffett's hypothetical bid for hundreds of thousands of US homes.

Alternative ways to invest in real estate without buying property.

W
arren Buffett once told CNBC that if he could buy thousands of single-family homes at a time, he'd "load up" on them. He emphasized the importance of low mortgage rates in making housing an attractive investment opportunity. As a value investor, Buffett seeks investments with low prices relative to their actual worth.

    Thanks to Jeff Bezos' initiative, you can now become a landlord for as little as $100 without dealing with tenants or maintenance issues. With consumer confidence at a low point in 2012, driving down housing prices, Buffett advised being "greedy when others are fearful." The median home price was $180,000 then, but it's now over $414,000.

    However, with interest rates higher than they were, would Buffett still be enthusiastic about real estate as an investment? In 2012, the average 30-year mortgage rate was 3.65%, while today it's around 6.86%. Markets are cyclical, and what goes up will eventually come down. To get the best rate possible, shop around – research from Freddie Mac shows borrowers who applied to multiple lenders saved up to $1,200 annually.

    Buffett also noted that he'd need an easy way to manage his hypothetical real estate investments. Several real estate crowdfunding platforms now offer streamlined management and administration, making it easier to tap into the market.

Billionaire Warren Buffett's hypothetical bid for hundreds of thousands of US homes nationwide.