Here's What We Know About Real Estate Two Years into the COVID Pandemic
How we live and where we live – this is a big part of the American Dream. The spacious suburbs, a corner of the world to call one's own, a yard to throw around a ball with the kids or maybe pets… these are all part of the American Dream. In other words, people want single family homes in good localities, with good schools nearby, a secure and peaceful life for the family. Now, two years of living with COVID, this is more so than ever before, as I explained to a gathering of Silicon Valley investors recently.
I have always recommended brand new single family homes as the best option for real estate investors. Brand new is best, because you have a brand new heating and cooling system, a new roof, and things are still within the builder’s guarantee. Owners will have little trouble with renters when everything is new and not likely to break down or need repairs. So in my view brand new homes are always a good idea, and I have nearly four decades of experience and hundreds of my own investments to back me up!
Right now, with our experience of COVID, single family homes have become even more desirable. Families do not want to live in shared spaces with common areas such as in apartment buildings. Independent houses are the best bet; preferably new homes where no one has stayed before seem very attractive indeed. This is something I have explained via magazine articles, TV shows and our live events as well.
My advice for real estate investing – Warren Buffett agrees!
The real game changer in my view is the Fannie Mae loans or the 30-year fixed-rate loans that are unique in the USA. I often have to convince non-Americans that this is real because it simply doesn’t exist in most other countries! These loans are impervious to inflation and the 30-year long term of repayment makes them a gift that no American can afford to pass up if they are serious about creating wealth for themselves.
Think about it… 30 years ago, a postage stamp was 4 cents, today it is 55 cents. In New York City you could watch a movie for $2 then; today it costs you 16 dollars! Thanks to inflation, that loan is going to become easier and easier to repay over the 30 year duration. So Warren Buffet and I agreed on the merit of the 30-year loan, as Entrepreneur Magazine reported recently. Buying as many single family homes as possible is going to help you pay for your kids’ education, buy that fancy car, and basically live out your retirement years not just comfortably, but wealthily!
Another aspect of real estate investing that I now recommend is choosing to invest in the metropolitan areas of the Sun Belt states. Addressing the Realty 411 event, I explain how I started out my investing career and why today, states like Nevada, Arizona, Texas, Oklahoma, Louisiana, Alabama, Georgia, and Florida are a better option than the northern states. Check out the video, and learn more about securing your future and achieving your financial goals.