Sunday, February 27, 2011

Warren Buffett and home ownership

A house can be a nightmare if the buyer's eyes are bigger than his wallet and if a lender - often protected by a government guarantee - facilitates his fantasy. our country's social goal should not be to put families into the house of their dreams, but rather to put them into a house they can afford.

--- warren buffet, in his 2010 newsletter to shareholders
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5 comments:

zhummmeng said...

This seems to apply to Singaporeans.
They stretch their CPF to the max and they need dual CPF to service the mortgage.The women cannot afford to stop work to look after babies because it means one income lost. This is another reason why people don't want babies..They all want fun only money can get them.
This is another reason why many cannot buy CPFlife and cannot retire.
Big home to flaunt to their friends and big car to park at home to wash and polish every weekend to outshine others.
That is why the goodies of the budget aren't attractive to them. They want more help. Imagine earning $150K a year still need need help and more cash and other rebates. What about those earning $15K?

February 27, 2011 1:39 PM
hongjun said...

"Human potential is far from exhausted" - Warren Buffett's Berkshire annual letter.

February 27, 2011 2:51 PM
Lye Khuen Way said...

How true ! Will there be a Singapore Warren Buffet to tell our MND/HDB & the general public about how the public housing should be priced ? Not as the private-sector profit driven model of " as-high-as-the-market-can-take".

February 27, 2011 4:13 PM
Singapore's 5 Minute Investment Diary said...

But Uncle Mah said I could afford it!

February 27, 2011 4:29 PM
Spur said...

Just a few days ago, the CEO of Singapore's 2nd largest property developer said with a straight face that "property prices will not crash". At most only 4%-5% decrease and this is good opportunity for people to buy into property. And business newspapers, CNA, all quote him like he's some property guru. Please lah, he is a guru all right, but guru in making tons of money for his company which happens to be a huge Temasek-supported property developer. Definitely not guru in thinking for you or thinking about your family's financial welfare.

As Buffet also said many times -- never ask a barber if you need a haircut.

February 28, 2011 2:38 PM

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