Real Estate

[SgtWs]

John Paulson scared the pants off of a packed audience at New York's University Club recently as he warned them of huge changes in the economic environment in the years to come.

Forbes' Bob Lenzer reports Paulson's saying:

“If you don’t own a home buy one."

”If you own one home, buy another one, and if you own two homes buy a third and lend your relatives the money to buy a home.”

Paulson has been bullish on housing for a while now (he runs a housing recovery fund), but this is him hitting super-bull territory. His reasoning is that home prices are great, the bond market is dead, and commodities like gold, which he also has a big prediction for, are on the rise.

For those who don't know Paulson, he was one of the main players that made billions betting against the housing market and everyone thought he was insane (at first).

[UwshUwerME]

Of course it's time to buy. But who has money?

[flight23]

Myself and a couple of friends have a corporation to buy rental properties and for the past few months every single really good deal we have seen has been sold within days if not hours in the area we are focusing on.

Months ago every single 'good deal' would be a so so deal two weeks later and many places continued to decline in price.

It is still area dependent though, many markets still have another 10-20% drop coming IMO. Economy is still not improving, housing credits are gone, etc... I think many of the builders will go out of business and if we have a corporate real estate bubble burst like many are predicting then residential housing will drop again as well.