Paulson: Buying a house still best investment
Billionaire money manager weighs in on housing
Looking at today’s economy and housing market, billionaire money manager John Paulson said in an interview with CNBC that he still believes buying a home to live in is the best investment possible.
"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," Paulson said Wednesday at the Delivering Alpha conference presented by CNBC and Institutional Investor.
"Today financing costs are extraordinarily low. You can get a 30-year mortgage somewhere around 4.5%. And if you put down, let's say, 10% and the house is up 5%, which is the latest data, then you would be up 50% on your investment," he explained.
"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."
But don’t just read about it, watch the video.