Yahoo Finance Warren Buffett Paid $31,500 For 1921 Home Despite The Seller Asking $52,500 — It's Worth $1.4 Million But Says Would've Made More Money Renting
Warren Buffett, renowned for his shrewd investments, has a knack for finding value, even in his personal life. In a 2011 Vanity Fair interview, Buffett shared the story behind his longtime Omaha residence.
Known for his frugality, Buffett has famously lived in the same five-bedroom stucco house since 1958. "The seller wanted $52,500, and I got it for $31,500," he recalled in the interview. Today, the house is valued at approximately $1.4 million, according to Realtor.com.
Buffett has consistently ranked the purchase of this home as the third-best investment he has ever made, trailing only his wedding rings. The 1921 house is located on a corner lot just five minutes from Berkshire Hathaway's corporate headquarters.
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Despite its modest size compared to the extravagant estates of other billionaires, Buffett treasures his Omaha residence. In a 2009 interview with the BBC's Evan Davis, he expressed his satisfaction: "I couldn't imagine having a better house."
Buffett admits that renting might have been a more financially beneficial choice. In a 2010 letter to Berkshire Hathaway shareholders, he wrote, "homeownership makes sense for most Americans ... All things considered, the third-best investment I ever made was the purchase of my home, though I would have made far more money had I instead rented and used the purchase money to buy stocks." He stressed the importance of not overspending on a home, warning that taking on excessive debt can lead to financial trouble.
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Buffett's Omaha home stands as a testament to his long-term thinking and strategic financial decisions. While he recognizes the value of homeownership, he also understands the potential benefits of investing in productive assets like stocks and businesses.
This philosophy was further demonstrated in August 2023, when Buffett's Berkshire Hathaway disclosed significant investments in three major U.S. homebuilders: D.R. Horton, Lennar, and NVR. The total investment exceeded $800 million, with D.R. Horton shares comprising the majority of the investment.
Homeownership isn't the only path to wealth. For some, the flexibility and potential returns of rental investments are a more appealing option. In fact, innovative companies are emerging that offer fractional ownership of rental properties, making real estate investing more accessible than ever.
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This article Warren Buffett Paid $31,500 For 1921 Home Despite The Seller Asking $52,500 — It's Worth $1.4 Million But Says Would've Made More Money Renting originally appeared on Benzinga.com
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