Single-Family Homes a “Very Attractive Asset Class Now” – Warren Buffett

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The news spread like wildfire.  No, it’s not another politician’s sex scandal or the latest (definitely not greatest) gas prices.  It is the monumental statement made by Warren Buffett that he would buy up “a couple hundred thousand” single-family homes.  The catch is that he would do that if it were something he could practically manage. He may not be able to practically manage it but individuals certainly can.

Think about that.  For months, if not more than that, countless Realtors have been urging their clients and potential clients that now is the perfect time to buy.  Now that it comes from one of the biggest investors of our time, it brings new light to the subject for many investors and has generated widespread industry buzz from the moment the billionaire uttered those words.

In an interview where he discussed several topics, soon into the discussion with Becky Quick of CNBC’s Squawk Box, he said that in addition to equities, single-family homes are probably the most attractive investment there is out there right now.  With the low rates that seem to be heading further down still, he suggests buying at these low interest rates and then for homeowners to refinance if and when the rates dips even more. 

He cited that the only reason he has not purchased as many homes as he would have liked is because of the practicality of managing the transactions and properties.  Apartment units might have been more manageable and in his words, he said he would “load up on them” had that been the case. But for the everyday investor it makes perfect sense to seize this opportunity and Warren Buffett highlights this repeatedly in his most recent discussion on CNBC.

Mr. Buffett shared his perspective on the idea of buying homes at distressed prices, fixing them up and renting them out as an ideal way to get a solid return on investment.  Referring to the changing trends and attitudes within the housing market, he also said this is the perfect way to “short the dollar” because with a 30-year fixed rate mortgage it can go two ways; either the interest rate is too high down the line after which you can go and refinance or if it’s too low the other guy’s stuck with it for 30 years.  Could this be the return of the house-flipping craze that we saw boom in the mid 2000s?

Mr. Buffett’s statement brings new light to something that so many agents and mortgage consultants have been saying all along.  Buy now.  At a time when stocks are just now rebounding after four years of inching their way back up, he says that consumers should acquire 30-year fixed rate mortgages and then refinance when rates go down further. 

If homeowners can hold on to their property for a long time after purchasing it at the lowest rates the industry has to offer they are sitting on the best investment possible of our time.  Of course equities are still very strong but they have come up quite a bit and Warren Buffett says owning a home is a “leveraged way of owning a very cheap asset”, making it quite possibly the most attractive investment that you can make.

Six Ways to Enjoy Life As You Know and Stretch Your Dollar in the Process

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Who doesn’t want to save a little extra money? Exactly. So one of the best things you can do is to live life as you normally would but in a way that allows your pockets to fatten up a bit in the process. If you’re someone that HAS to have a $6 gourmet cup of coffee made by the cute blonde at the national coffee chain on the way to work – think again. Join a coffee club, get a coffeemaker (usually free with most clubs you join) and learn to make the perfect cup o’ joe yourself.

Here are six more things you can change in your life so that you can actually enjoy life fuller and longer in the end – with more cash in hand. Doesn’t everybody want to retire in style? And if you’ve got more on your plate (and mind) than retirement, living frugally for a few weeks (months? years?) can definitely pave the way for a great retirement someday.

Free Entertainment

City and county governments are always trying to fill up their calendars with lots of great things to do for their citizens. Enjoy anything from outdoor events like seasonal concerts, holiday parades, and heritage celebration to the local library, community recreation centers or fruit/veggie picking. The possibilities are endless when you factor in each holiday throughout the year (Halloween, St. Pat’s Day, Easter, or National Apple Pie Day to name a few). Most of these events cost little to nothing and are usually free for kids. You can visit parks, see fireworks, enjoy natural beauty in the area, go on a picnic or attend charity-based events while getting in some exercise too.

Use It or Lose It

We’re not talking about exercise here, rather your old stuff. You won’t believe how much you can make (saving with a little discipline) by selling off things you don’t need. This can be anything from old computers and electronics, furniture, magazines and books or toys. If you have an old vehicle you have sitting around thinking you will “get around to fixing it up someday” JUNK it and save hundreds (more?) for a rainy day. So many people are obsessed with owning stuff that they tend to have so much of it that they don’t even need! If you have duplicates of one thing, over and over again – get rid of the extras.

Get Couponing

There is a two-sided message here. 1. Get Couponing and 2. Get Coupons! By “get couponing” we mean that you ought to understand how it works, respect the process and get going on it. The latter is simple – just go out and start grabbing coupons for anything and everything you see that you would normally spend money on. Long before the TV show Extreme Couponing came out, people were clipping coupons to save hundreds upon hundreds of dollars each month. Do it just a little bit to get a feel for it and then dig in! Don’t forget the library has a million of them (at least) on hand.

Plan Meals Ahead – Way Ahead

The whole idea of fast food is not necessarily that food is available fast but also that you didn’t have time (or make time) to plan a meal so now you have to think fast. The amount of money Americans end up wasting on take-out (and dine-in) is astronomical and with just a few simple changes you can be way ahead of the game both food-wise and financially. Put meals on paper, plan them out so that one blends into the other*, shop ahead of time. It’s as simple as that to save hundreds of dollars if not more – each month.

*If you bake a chicken on Monday, make chicken fajitas with the leftovers on Tuesday.

Reduce, Reuse, Recycle

We’re not talking about washing out the empty milk jugs and chucking them in the recycle bin (although in the long run that IS saving the planet some cash) but instead, investing in used furniture pieces and then refurbishing them. It’s amazing how nice an old dresser can look after it’s been sanded and stained. Paint some old dining chairs and you’ve just saved yourself a TON (depending on where you might shop for regular price chairs). This even works great for those really expensive kids’ toys that have been around for generations and will be around for generations more. Why waste if you won’t know the difference once you personalize the secondhand stuff?

Savor the Stuff You Already Have

Too many people buy stuff and then forget they even own it. Savor what you have and forego the next trip out shopping. If you have old books, let go of spending $5, $6 sometimes more on a magazine and go for the classics. In fact, visit your local library (yes, we keep mentioning the library) and enjoy all the freebies there – books, CDs, or DVDs. Depending on where you live, a lot of libraries even offer a ton of activities for kids or enrichment classes for everyone else.
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Try it for one month – and write back to us. We’ll post it on the blog to share how everyone’s doing. Trust me, it will be a ton of fun!

Eight Reasons Why Mint.com Is a Great Catch

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Anytime a new relationship is on the horizon, who doesn’t want to be absolutely sure that they’ve got a great catch?  Well let me tell you, it’s no different when it comes to finding someone (or something) that will manage all of your finances.  Mint.com is exactly that – an agent (well, a website) that will handle the most important aspects of your financial life and keep it all organized in one neat little package.  But why choose this one as opposed to myriad other options out there?  Here’s a list of qualities you’ll absolutely love about this new love in my life and I’m sure that once you explore it a little bit, you’ll feel the same way as I do.

Total Monogamous Relationship

One password, one log in and you get everything you want and need rolled into one, perfect little website.  What’s more, it’s not complicated or complex.  Once you decide to get involved with Mint, you won’t want to stray in other directions.

Likes To Travel

Mint’s easy mobile connectivity allows you to access all your financial information in one spot, from one spot – your phone – no matter where you are.  With optimization for smart phone technology, being a modern player is definitely not lost on this newbie.

Smart AND Organized

All information about what you have to spend, what you’re saving for later, notes for your car and home plus anything (financial) in between – is easily organized and at your fingertips.  You’ll get reminders and alerts to make sure you stay in line with your goals and budget.

Team Player

Mint.com is up-to-date and cares about making your life easier.  They’ve teamed up with Turbo Tax to make tax time a breeze.  The site works with your bank information, mortgage lender and investment firms to streamline everything, making life easier (and wonderful) for you.

Young and Fresh

You’ll see innovative concepts and streamlined processes that clearly make it obvious that this is a young and totally current player in the game.  Clean lines, no heavy baggage, simple and easy handling – you’ll wish that all your relationships were as easy as this one.  The administrators make sure that everything you do is über-easy and completely user-friendly.

Wants a Future With You

Not only do you get fantastic tools to help you through today, mint.com has the provision of some great budget and planning tools to help you move successfully into the future.  As you work toward achieving your goals, the site has ample positive traits that help your success right along, just like you’d expect from any good, devoted partner.

Low-Maintenance

You won’t believe how little it will cost to keep this relationship in a happy place!  In fact, becoming friends with Mint is completely free.  Not only that, you aren’t paying anything for added safety in security and you know you’re in good hands because you can trust them.

Invested in Your Personal Growth

Browse through the tons of really valuable advice and content that you get through the Mint community page and you’ll realize that there is genuine support toward your personal growth.  Since there are so many articles available about personal finance, money and financial topics that will help you get and stay successful, there’s one more reason that this relationship is definitely a keeper!
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Don’t take my word for it, check it out for yourself.  https://www.mint.com/