저자: RichardFain · 외국인
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워런 버핏의 부동산 투자 신중론을 소개. 현재 높은 주택가격과 금리로 임대 부동산은 현금흐름이 맞지 않아 본인은 2021년 이후 매입하지 않았고, 대신 S&P500 ETF 등 종이자산에 정액 적립투자 중. 장기 보유 목적이면 부동산도 분산 차원에서 고려 가능하나 현금흐름 검토 필수. 본인 기준 현금-현금 수익률 10% 미만이면 투자 의미 없음. 영상 중 유료 증권사 계좌 개설 및 유료 커뮤니티 홍보 포함.
다듬은 글
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richfane.net. Second link down in the description box. Let me know you've opened that Weeble account and you funded it and I'll send you that tutorial video. Warren Buffett gave his final warning. Do not buy a home. Well, he didn't actually say that. I kind of throw that little extra part in. But but here's what he did say about real estate.
in his most recent shareholders meeting, he went on record and basically said, and I'm paraphrasing, that it's a lot harder in the current environment with higher home prices, higher interest rates to borrow money in order to buy a piece of real estate or buy a home or buy a rental property. Those two factors are too costly right now in order to really make any money.
Back in 2012 was the last time Warren Buffett seriously thought about buying real estate. And the reason he thought about it back then was real estate had took at least a 30 to 50% decrease because of the 2008 great financial crisis. And you could also borrow money pretty cheaply back then. For me personally, I haven't bought any real estate since around 20 21.
And the reason I haven't bought any is because of just what Warren Buffett said. The borrowing cost is too high and the cost to purchase the rental property has been too high. And then when you do the math, it doesn't work. If I can't get at least a cash on cash return of 10%. For me, it doesn't make any sense.
So, what is the alternative? What did Warren Buffett say the alternative is to buying real estate for income? Paper assets. That's his alternative. And his thought process is this. It's just simpler. It's easier. You know, I can turn on my computer. I can turn on my laptop. I can turn on my phone. I can go to my brokerage account.
And within five minutes, I can invest in an ETF or an index fund or an individual stock. And I'm done. That's it. No toilets, no tenants, and I can just do that month in and month out. And since 1928, the S&P 500 has delivered on average just under a 10% return. Now, again, that does not mean it will do that in the future, guys.
I'm just giving you historically what the S&P 500 index has done. But that's Warren Buffett's biggest pet peeve about investing in real estate right now is the cost to acquire the property is too high. And if you can acquire the property, the cost to borrow the money to pay for that house or duplex or 3lex or forplex is higher.
So for him, he's going to stick with paper assets. Now, none of us are Warren Buffett, right? None of us are going to get the returns uh in paper assets that a Warren Buffett has has done. I mean, he's a he's a savant, right? He he he's a he's a one in a lifetime. There's not anybody else out there like Warren Buffett.
So, let's not compare ourselves to Warren Buffett. Let's say just an average person like me looking for a way to build wealth. I did buy real estate for a lot of years. But when I was buying real estate, it was less expensive, right? Single family homes were less expensive. And the cost to borrow money to buy that single family home that I would put a tenant in was less expensive.
The reason I haven't bought any real estate since 2021 is because just too expensive, man, from a from a cost of the property and the cost to borrow the money. And then when you do the math on it, it don't cash flow. If I can't get at least a 10% return on my money, for me personally, it doesn't make any sense when I can just turn around.
Historically speaking, in my experience, I'm not talking about for other people, but in my experience, when I've put my money in the S&P 500 ETF that tracks a S&P 500 index, something like a VO or a SPLG, I've done a lot better. So, for me, it doesn't make sense to go through all of that hassle of buying a piece of real estate.
You got inspections, you got, you know, negotiations, you got to go borrow money. And then when you do acquire the property, you got to deal with the tenants. You got to deal with repair and maintenance. You got to deal with hurricanes, tornadoes, and sh. It's a it's just a lot of things you got to deal with for, you know, right now based on where interest rates are if you got to borrow money for not a huge return.
But it's a good opportunity for someone that says, "You know something? I like paper assets, but I don't want to have all my eggs in one basket. I don't mind buying a piece of real estate right now. For the next 10, 15 years, I'm going to hold it." I think at that point, that may represent a good idea, right?
Because if you're going to hold it longterm, there will be hopefully some appreciation in the property. If you bought in a neighborhood or an area that people have a desire to live, you should over that next 10 to 15 years according to history get some type of appreciation for that property, right? And again, we know paper assets also go up and down.
So, you know, I get it. But for someone that wants to diversify and don't want all their eggs in one basket, in a paper assets basket, and they want to add a little real estate, then certainly look into it. I recommend you just make sure you do the cash flow on it. Make sure you look at the historical appreciation in that area of properties so that you you can make sure over time hopefully you you get a good return on your money, right?
And and let's face it, like I said earlier, none of us are Warren Buffett. None of us are going to do what Warren Buffett has done over his career with paper assets. He's just one of the best in the business. So, so because he doesn't feel like it's a good investment for him at this particular point doesn't mean it may not be a good investment for you.
So, just get out there and do your due diligence and make sure when you're looking at these properties to purchase if for for rental properties, make sure you just do the cash flow. Make sure you take a look at the rental rates in that area and make sure those rental rates will support, you know, the expenses associated with you owning that property like your property taxes, your property insurance, repair and maintenance, and then of course a mortgage uh payment if you got to borrow money to buy the property, right?
So, just make sure you do all of those things up front and then if it makes sense and it pencils out, the cash flow works for you, then hey, real estate is a great way to build wealth. Man, I did it for 25 years. Like I said, recently I have not done it because it just doesn't pencil out for me. For me, it's much easier just to go into paper assets and and take my chances there.
Now, of course, paper assets is not guaranteed either. Nothing is. But for me, uh, it it's been a it's been a way for me to be able to really increase my net worth and and try to get the financial freedom by just being consistent with my dollar cost averaging every single month, every single year. And big boy blue chip and it's done well for me and I haven't bought any real estate, like I said, in a while.
And and don't plan on buying any anytime soon. not with where prices are and not with where interest rates are because I have to go out and borrow money when I buy real estate, right? I want to leverage five to one and right now again 7 and a half% interest rate. You know, I got to put 20% down and I'm paying probably a premium for the property.
Now, there's some opportunity to negotiate a little bit more right now because in some parts of the country, you got a little bit more inventory on the market, so you can kind of negotiate a little bit better. But hey, you got to want to do that. And right now, Warren Buffett is not one of an investor that's willing to do that.
He's just he feels like paper assets for him and his and his company gives him the best opportunity to do what he needs to do from a rate of return on the money that he invests. and he has that right to do that. Again, none of us are Warren Buffett, though. So, we got to keep that in mind, right? I mean, that's good for Warren Buffett to say, you know, it's not the right thing for him.
But individually, we have to go out and make that determination for ourselves. Now, I've made it for myself. I agree with Warren Buffett, but that doesn't mean you have to agree with it. You should go out and do your own independent research on both paper assets and real estate. And then just come up with your conclusion, what you believe is best for you and your family as it relates to building your wealth and getting to your pot of gold at the end of the rainbow.
Drop me some comments down in the comment box and let me know what you think about real estate, specifically rental properties. Is it the right time to buy right now? And if you are buying real estate, rental properties for income, let me know how it's going for you. Are you finding that you're getting good deals?
Are you finding that you can go into a bank and negotiate a good rate? What are you doing as a way to make sure you're getting a return on your investment? I'd love to hear y'all's feedback down in the comments. So, please give it to me. If you want up to 20 free stocks, Weeble is going to give you up to 20 free stocks when you open a new Weeble brokerage account.
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Open up that Weeble account today and go get that free stock. www.richfane.net is my website address. I got 10 big boy blue chip digital products that will change your life. That's my opinion now. And I'm biased because I created the digital products. So, I'm biased, but I believe they'll change your financial life by adding a level of financial literacy to your war chest, your financial war chest.
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