Warren Buffett once said the Americans should be “lined” to buy homes, describing the mortgage for 30 years as “do not think” and a good way to cut the dollar.

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Warren Buffett It is famous for stocks, not slipping at home. He still lives in the home of Omha that he bought 1958 for 31,500 dollars I keep the small small real estate imprint compared to other billionaires.

This economy series is part of the point here: people have never told avoiding having a house-that the firm mortgage for 30 years can be a powerful tool when used wisely.

Again in October 2014, On the stage at the Thanwa Conference“You might think people will now line up for hostages to buy a house … it’s a good way to cut the dollar and short interest rates. It’s irrational,” Pavit said. The language of “lining” and “non -thinking” is for him, and “palaces of the dollar” is exactly how it put it.

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Buffett logic is clear and direct: with the payment of borrowers for 30 years in the future dollar, which may be less-this is the “short dollar” idea. If the prices decrease, the re -financing is optional; If prices rise, the contract protects the owner of the house. In 2014, this resonance takes it because the mortgage rates are almost hovering in a low to an average of 4 %, and even decreased to an area of ​​3.8 % by the end of the year, while home prices were steady He recovered from housing breakdown 2008.

Famous cases data appears House prices in the United States were wore by 2014 and were rising at annual rates in the middle of the number in the middle of the numbers-if they were slower than Snapback after the statue. That period reminded the buyers why housing can hedge the inflation on long horizons: since 1987, The prices of nominal US houses increased by about 410 %While the modified gains that were modified are about 77 %-not a rocket ship, but it is a solid store of value.

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Quickly forward until last May, when Pavite was asked at the annual meeting of Hathaway’s Purchiires in Omaha why he doesn’t buy more property. His answer was targeted by real estate investment, not ownership of the house: “With regard to real estate, it is Many more difficult stocks Regarding negotiations on deals, time spent, and the participation of multiple parties in ownership … Usually when real estate faces a problem, you discover that you are dealing with more than just the shares holder.