How to buy a home like Warren Buffett?

If you are wondering What legendary investor Warren Buffett advise on buying a home? Here is the answer. 

1- Consider buying a home as an investment

According to Mr. Buffett, buying a house is like buying a particular stock.  You wouldn't buy a stock if you weren't confident it would increase in value.  So why would you buy a home above market value only to then take decades to recover your investment?

For the billionaire, buying a home isn't just about figuring out how to manage the down payment, costs and monthly mortgage payments, but also covering maintenance and repair costs.

2- Be realistic when buying a home

According to Redfin, home values ​​increased by an average of 45% between 2019 and mid-2022. If you're new to the housing market, you may not realize how unusual that is.

If you buy a home on the belief that it will appreciate at an annual rate of 5%, 10% or more, you are likely to make a very bad decision.

Depending on where you live and the condition of your house, annual price increases may/or may not keep up with inflation.

Never buy a home with the belief that it will increase in price by a specific amount each year.

3- Long-term thinking when buying a home

When you buy a home that you can afford and hold for the long term, you will be able to weather the years when price increases have not kept pace with inflation.

4- Patient when buying a home

Although he has no interest in buying thousands of houses and becoming a homeowner, Buffett often says buying a home is one of the smartest financial moves he's ever made.

The trick is to be strategic about it.  Don't fall into the trap of believing you'll never be able to buy a home, just because the market is too hot to handle right now.

5- Wait for the right price to buy a home 

You will need to be patient when checking real estate listings and keeping an eye on interest rates.  Then, when you buy a home, you'll have to be patient as you pay off your mortgage and the home increases in value.

There will always be stories of people making millions of dollars a day trading the stock market.

And there will always be stories of lucky homebuyers buying a home with good prices and then selling when the market is hot.

How to buy a home like Warren Buffett?

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