Warren Buffett on Buying in San Diego

What would Warren Buffett say about buying in downtown San Diego?  Did you know that he still
lives in the home he bought in 1958 for $31,500?  It's about 1 mile away from the Berkshire Hathaway Offices in Omaha, Nebraska.  In an interview Buffet said that single-family homes are a cheap and attractive investment. He said that if he had a way to buy a couple hundred thousand single family homes and easily manage them, he would load up and take mortgages out at very, very low rates.  There is the catch, it is not easy to manage a large portfolio of single family homes.  Because of the absence of many institutional investors in the US residential real estate market, it is less competitive.  They usually like apartment buildings which leave the single-family homes segment even less competitive. 
Buffet advises young people to make an investment and live in it.  As the economy rises so will rents and housing prices.  The interest rates are at historic lows.  For example 1% interest increase means about $187/mth more in your payment. Buffet is famous for only investing in assets he believes are under valued.  Doesn't that tell you something when he is acquiring Real Estate offices throughout the U.S. under the Berkshire Hathaway Home Services name? It's hard to believe that he actually makes over $37 million per day! His net worth is over $63 billion thanks to his Berkshire shares which are trading above $200,000 a share.  This further validates his decades-long bet on the U.S. economy.

Acqua Vista 616 $399,900

Here is an example of what Warren is talking about. We just listed a nice 2 bedroom in Little Italy for $399,900 located at 425 W Beech St. #616 at Acqua Vista.  My brother in law lives in the building and has been very happy with the walk-ability factor and building amenities.  It has a spacious feel, granite counters, wood flooring, private balcony and a huge private storage area.  This one will rent for over $2000/mth or use it for your "place card" property saving your place in the inclining San Diego Downtown market. Prices in downtown San Diego have fallen a bit but are predicted to increase at about 4% per year.  Days on market have remained the same since 2013.    Many of the best buys in Downtown San Diego go to the buyers who can get the information ahead of the MLS listings.  Because our downtown San Diego team has the most listings, we can get this information to our buyers ahead of time.  Let me know if you hear of anyone with interest in this coveted list.  Go to: Not Yet in MLS  and let me know what they're looking for.  Marsha marsha@sellsandiego.com