
GE Aerospace CEO Larry Culp on Q2 results: There's a lot that's going right in the business

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Icahn Enterprises (IEP) Q2 Earnings Report Preview: What To Look For
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What To Expect From John Bean's (JBTM) Q2 Earnings
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Warren Buffett Said Buying 'Distressed' Homes With 30-Year Mortgages And Renting Them Out Might Be The 'Most Attractive' Investment Available
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. If you remember 2008, chances are you also remember the fear. Home values were collapsing. Borrowers were defaulting. The phrase "underwater mortgage" was everywhere. But fast forward to 2012, and Warren Buffett was telling CNBC viewers something no one expected to hear: that housing—yes, housing—was one of the best investment opportunities available. Buy the House, Not the Hype— Buffett's Surprising Advice for Young Investors During CNBC's three-hour "Ask Warren" Squawk Box special, host Becky Quick asked Buffett a question aimed at everyday investors: "If you are a young individual investor at home and you have your choice between buying your first home or investing in stocks, where would you tell someone is the better bet?" Shop Top Mortgage Rates Your Path to Homeownership A quicker path to financial freedom Personalized rates in minutes Don't Miss: 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.30/share. Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Here's how you can earn passive income with just $100. Buffett didn't hesitate. "If I knew where I was going to want to live the next five or 10 years, I would buy a home and I'd finance it with a 30-year mortgage, and it's a terrific deal," he said. He didn't stop there. "If I was an investor that was a handy type, which I'm not, and I could buy a couple of them at distressed prices and find renters... it's a leveraged way of owning a very cheap asset now, and I think that's probably as attractive an investment as you can make now." At the time, homes really were cheap. Prices had bottomed out after the crash, mortgage rates hovered near 3.5%, and properties were sitting untouched, waiting for someone with courage—and a toolkit. Buffett made it clear he wasn't that guy. His daughter Susie once joked he couldn't even find the light switch in their house. He understood the math of real estate, not the manual labor. Still, his message was simple: if you had the skills and long-term vision, buying homes in 2012 was a rare opportunity. It's Not 2012 Anymore, and It's Definitely Not a Buyer's Market In 2025, Mortgage rates have climbed past 6.7%, according to Freddie Mac, making monthly payments significantly more expensive than they were a few years ago. Meanwhile, home prices remain elevated. Zillow reports that the typical U.S. home value in June was around $369,000—up 0.5% from the same time last year and still more than 30% above pre-pandemic levels. Sellers with sub-4% mortgage rates are hesitant to list, and many buyers are sitting out, unable or unwilling to purchase at current prices and borrowing costs. In short, it's a standoff. The kind where nothing moves. Buffett's advice worked in a world where homes were undervalued and financing was cheap. But what about now? For young investors, getting started in real estate is harder than ever. Finding a "very cheap asset" just isn't realistic in this market. Still, the idea behind his advice hasn't changed: real estate can be a strong, long-term investment—if you can get in and hold on. And while Buffett dismissed the landlord role for himself, that exact limitation is what new investment models are trying to solve. Skip the Wrench, Keep the Wealth? Today, platforms like Arrived Homes let people buy fractional shares in rental homes without dealing with tenants, maintenance, or paperwork, with as little as $100. The company handles everything from property management to repairs, so investors can own a piece of real estate without ever showing up with a screwdriver. It's not what Buffett described in 2012—but it does speak to the same problem he pointed out: owning homes one by one is "enormous" to manage. He saw the opportunity. He also saw the workload. In 2025, the math has changed, but the question is still on the table: If you could invest in real estate without the real-world hassle—would you? Buffett's answer might still be yes. Just don't hand him a wrench. See Next: Maximize saving for your retirement and cut down on taxes: Schedule your free call with a financial advisor to start your financial journey – no cost, no obligation. It's no wonder Jeff Bezos holds over $250 million in art — this beloved alternative asset has outpaced the S&P 500 since 1995, delivering an average annual return of 11.4%. This article Warren Buffett Said Buying 'Distressed' Homes With 30-Year Mortgages And Renting Them Out Might Be The 'Most Attractive' Investment Available originally appeared on