John Paulson, the legendary investor who was the man behind “the greatest trade ever,” spoke yesterday in New York City at the 92nd Street Y and made it loud and clear that buying real estate is the thing to do.
Paulson stated that the housing market has shown a “strong recovery” and that prices are up and the number of homes for sale are at a decade low. “Those factors will likely put pressure on builders to create new product, creating some of the most positive change in housing since the Lehman crisis.”
Paulson owns a house in the Hamptons, but he could not have been clearer yesterday. His exact words were, “This is probably the best time in our lifetime to consider buying a house.”
Meanwhile, Goldman Sach CEO Lloyd Blankfein isn’t using words to state his views on what will happen in the real estate market in the Hamptons, he’s using actions. The CEO recently purchased a Bridgehampton home for a reported $32.5 million! And keep in mind, this is on top of a house that he already owns out here.
My viewpoint is that if you can afford it and it makes you happy, then definitely go out there and buy. But if you are one of those people that have to borrow a lifetime’s worth of earnings just to say that you own a house, there is no shame in renting. Luckily, here in the Hamptons, there are plenty of people who can more than afford to buy.