When a billionaire makes this huge of a statement, you know that this is something to listen up about. No matter how many times we hear realtor.com, zillow, trulia, msn real estate, Keller Williams Realty or even the NAR state that Sarasota real estate is going up, hearing it from a billionaire makes you do a double take. Just how many other billionaires out there are open about their investments?
John Paulson made an absolute fortune in 2005 and 2006 by stating that the then mortgage issues would make the real estate market collapse. Overall, you could say very easily that he has a nice understanding of just how the real estate market works. Forbes magazine even went as far as to say that John Paulson is “A multibillionaire hedge fund operator and the investment genius.” Wall Street Journal then stated that Mr. Paulson was “A hedge fund tycoon who made his name, and a fortune, betting against subprime mortgages when no one else even knew what they were.”
Now not everyone is a math genius as much as John is, but in his recent interview with the Delivering Alpha Conference, John went on to say, “Today financing costs are extraordinarily low. You can get a 30-year mortgage somewhere around 4.5 percent. And if you put down, let’s say, 10 percent and the house is up 5 percent, which is the latest data, then you would be up 50 percent on your investment. “And you’ve locked in the cost over the next 30 years. And today the cost of owning is somewhat less than the cost of renting. And if you rent, the rent goes up every year. But if you buy a 30-year mortgage, the cost is fixed.”
At the end of the day, this billionaire made his money from real estate just like we have in our Sarasota Real Estate Market and I can guarantee that when a billionaire makes a statement like this, people will want to know what they are saying.