Billionaire: Homeownership still best investment

07/23/2014

Billionaire: Homeownership still best investment

NEW YORK – July 21, 2014 – John Paulson, a billionaire hedge fund manager, says that people who want the best investment possible need to look at homeownership.

"I still think, from an individual perspective, the best-deal investment you can make is to buy a primary residence that you're the owner-occupier of," says CNBC and Institutional Investor, Paulson.

"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."

Paulson stressed that an owner-occupied home – not a home bought to be a rental – is what he views as the best investment individuals can make right now.

"To buy it as an investment and rent it out – I'm not so enamored with that concept," he said.

Source: "Paulson: Buying a House Still Best Investment," CNBC (July 17, 2014)

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