Warren Buffett Says 'Buying A House Is Usually A Lousy Investment' — Here's Why (2024)

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e=r.searchBoxForm.querySelector("[name=fr]"),n=r.searchBoxForm.querySelector("[name=fr2]");e&&r.config.searchBox&&r.config.searchBox.params&&r.config.searchBox.params.fr&&(e.value=i.searchBox.params.fr,e.disabled=!1),n&&r.config.searchBox&&r.config.searchBox.params&&r.config.searchBox.params.fr2&&(n.value=i.searchBox.params.fr2,n.disabled=!1),r.searchBoxForm.submit()}}),1e3)},r.recognition.onspeechstart=function(){},r.recognition.onspeechend=function(){r.recognition.stop()},r.recognition.onerror=function(){r.speechText&&(r.speechText.innerText=r.i18n.t("search.voice.recognition_error")),r.hideTrending(r),r.showRetryLink(r),r.errorAudio.play()},r.recognition.onaudiostart=function(){r.speechButtonContainer&&r.speechButtonContainer.classList.add("listening")},r.recognition.onaudioend=function(){r.speechButtonContainer&&r.speechButtonContainer.classList.remove("listening")},r.recognition.onsoundstart=function(){r.hideTrending(r),r.noSpeech=!1,r.speechButtonContainer&&(r.speechButtonContainer.classList.remove("listening"),r.speechButtonContainer.classList.add("speaking"))},r.recognition.onsoundend=function(){r.speechButtonContainer&&r.speechButtonContainer.classList.remove("speaking")},r.recognition.onstart=function(){r.recognitionInit(r),r.startRecognition(r)},r.recognition.onend=function(){r.isRecognitionStart=!1,0==r.noSpeech&&""==r.speechResult&&(r.speechText&&(r.speechText.innerText=r.i18n.t("search.voice.recognition_nomatch")),r.hideTrending(r),r.showRetryLink(r),r.errorAudio.play())},document&&document.dispatchEvent&&document.dispatchEvent(new Event("VOICE_JS_READY"))}}o.I18n=m,o.prototype.renderPermissionGuide=function(e){var n='\n

    \n

    \n

    \n

    \n

    \n

    \n

    \n

    '.concat(e.i18n.t("search.voice.permission_title"),'

    \n

    ').concat(e.i18n.t("search.voice.permission_text"),"

    \n

    \n

    \n

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    \n

    \n

    \n

    \n

    \n

    \n \n \n \n \n \n \n

    \n

    \n

    \n \n \n '.concat(e.i18n.t("search.voice.recognition_retry"),'\n

    \n

    \n

    \n

    \n

    \n

    \n ').concat(e.i18n.t("search.voice.trending_title"),'\n \n

    \n

    \n

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t,o,i,r=e.getConfig();if(n.ybar&&"desktop"===r.device&&(null===(t=r.bucketConfig)||void 0===t?void 0:t.highlight_searchassist)&&(null===(o=r.bucketConfig)||void 0===o?void 0:o.overlay_class)){n.ybar.setAttribute("data-ovrly-bkt",r.bucketConfig.overlay_class),null===(i=n.searchForm)||void 0===i||i.classList.add(Un[r.bucketConfig.overlay_class]);var a=document.createElement("div");a.classList.add(Un.overlay,Un[r.bucketConfig.overlay_class]),document.body.appendChild(a),e.onDestroy((function(){document.body.removeChild(a)})),e.addElementListener(n.searchForm,"focusout",(function(e){if(n.searchForm&&n.searchInput){var t=e.relatedTarget;t&&!n.searchForm.contains(t)&&window.YAHOO.SA&&window.YAHOO.SA.apps&&window.YAHOO.SA.apps[0]&&window.YAHOO.SA.apps[0].view.shown&&window.YAHOO.SA.apps[0].view.hide()}}))}}(e,n),zn(e,n),n.voiceSearchBtn&&function(e,n){var t=e.getConfig(),o=t.locale,i=function(){var e,t;(null===(t=null===(e=window.YAHOO)||void 0===e?void 0:e.Util)||void 0===t?void 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    Warren Buffett Says 'Buying A House Is Usually A Lousy Investment' — Here's Why (2024)

    FAQs

    Warren Buffett Says 'Buying A House Is Usually A Lousy Investment' — Here's Why? ›

    Opportunity Cost Conundrum. Perhaps the most compelling argument against buying a home lies in the concept of opportunity cost. Buffett elucidates how tying up capital in a home purchase deprives individuals of the potential returns that could be generated through alternative investments, such as the stock market.

    Why is buying a house not a good investment? ›

    Here are some of the downsides to buying a home. Acquisition costs are high: Housing prices have skyrocketed, and mortgage interest rates also remain steep, which lowers your buying power and makes a home purchase today more expensive than it used to be.

    Why does Warren Buffet not invest in real estate? ›

    Warren Buffett generally buys real estate only in the form of real estate investment trusts (REITs). He sticks to stocks because he thinks they offer a more efficient way to build wealth.

    Why do people say a house is a bad investment? ›

    A Home is an Unproductive Asset

    Owning businesses, stocks and bonds are good examples of investments that pay you cash each year. Primary residences are unproductive assets. Not only don't they pay you dividends, they actually take money out of your pocket every single month like clockwork!

    Why millionaires don t buy houses? ›

    Many wealthy would-be buyers can afford to wait to buy their dream home — so they're choosing to rent instead. Some may be waiting for lower rates and more homes on the market. Others may believe the housing market is overvalued, according to Realtor.com, and want to avoid overpaying for a property that may lose value.

    Is it really worth buying a house? ›

    Generally, if you intend to stay in a property for more than 2-5 years, it becomes more worth it to buy a house in California. Over this time, you will build equity and benefit from property appreciation.

    Is real estate a lousy investment? ›

    While many people view homeownership as a hallmark of financial stability and wealth building, legendary investor Warren Buffett says it includes overlooked costs, which could make buying a house a poor investment.

    Who is Warren Buffett going to leave his money to? ›

    The chairman and chief executive of Berkshire Hathaway told WSJ last week that nearly all of his massive wealth will go to a newly created trust overseen by his three children.

    What will Warren Buffett do with his wealth? ›

    Buffett, 93, the chairman of Berkshire Hathaway, told the Wall Street Journal he has again re-worked his will — and that he does not plan to continue donations to the Bill & Melinda Gates Foundation after he dies. He will put his wealth in a new charitable trust overseen by his three children, he said.

    What does Elon Musk say about the housing market? ›

    Elon Musk says home prices will tumble 'next'—Redfin's CEO disagrees. On Monday, Elon Musk tweeted: "Commercial real estate is melting down fast. Home values next." There's no doubt about it: Things aren't looking so great for commercial real estate, especially for office space.

    Is a real estate market crash coming in 2024? ›

    Though many Americans believe the housing market is at risk of crashing, the economists who study housing market conditions overwhelmingly do not expect a crash in 2024 or beyond.

    What is Warren Buffett's most famous quote? ›

    Price is what you pay, value is what you get.” This famous Buffett quote strikes at the heart of the “value investor” approach and reveals the secret of how Buffett made his fortune. After Buffett was rejected by Harvard, he enrolled in an undergraduate degree at Columbia Business School.

    Why buying a home is not an investment? ›

    In addition to the down payment, there are a number of ongoing costs specific to homeownership, too, including mortgage payments and interest, property taxes, utilities, homeowners association fees and ongoing repairs. All of these expenses may make homeownership out of the question.

    Is buying a house a trap? ›

    Owning a home has a way of sucking up a huge percentage of your valuable income, especially if you've bought more house than you can afford. Yes, you are building equity in your home, but cash that goes into your home is very difficult to take back out.

    Why is buying a house a bad idea right now? ›

    Home prices have doubled in the last decade, with much of that growth happening in just the last four years. By one measure, housing affordability has fallen to its lowest level since the 1980s. And high interest rates have exacerbated the problem, ballooning monthly mortgage payments.

    What is negative about owning a house? ›

    Increased Financial Responsibility

    You'll also pay property taxes and homeowners insurance. And unless you made at least a 20% down payment, depending on the loan, you may also pay mortgage insurance. All of these additional expenses can increase your monthly payment.

    Why is it not a good idea to buy a house right now? ›

    Home prices have doubled in the last decade, with much of that growth happening in just the last four years. By one measure, housing affordability has fallen to its lowest level since the 1980s. And high interest rates have exacerbated the problem, ballooning monthly mortgage payments.

    Why housing is not an investment? ›

    In addition to the down payment, there are a number of ongoing costs specific to homeownership, too, including mortgage payments and interest, property taxes, utilities, homeowners association fees and ongoing repairs. All of these expenses may make homeownership out of the question.

    Is it ever a bad idea to buy a house? ›

    If your credit score is strong, your employment is stable and you have enough savings to cover a down payment and closing costs, buying now might still be smart. If your personal finances are not ideal at the moment, or if home values in your area are on the decline, it might be better to wait.

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