Saturday, December 31, 2005

More on Yesterday's Times Article

by Osman Parvez



As a followup on yesterday's post, here's another real estate blogger's interpretation of the NY times piece I blogged about yesterday.

I agree with her conclusions. In most parts of the country, even those areas that seem bubblicious, buying still makes sense if you are in the market for long term ownership. In contrast, if you are looking at a property primarily as an investment held over a short period, your returns may not live up to the returns of the past few years (particularly in bubble markets on either coast). Heck, flippers could (and will) lose money.

The vein running through these thoughts reminds me of a famous Warren Buffet saying. Asked about his holding period when choosing investments, Buffet quipped "Our favorite holding period is forever." In my opinion, prudent real estate investors should follow the same philosophy.


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