Friday, December 14, 2012

Barclays Capital: Home Values Could Return to Peak Levels As Soon As 2015

Barclays Capital predicts that home prices, off 30%+ after the housing bubble burst in 2007, could return to peak levels as soon as 2015. The long-battered housing market is finally starting to get back on its feet, and some experts believe it could soon become another housing boom.

Signs of recovery have been evident in the recent pick ups in home prices, home sales and construction. Foreclosures are also down and the Federal Reserve has acted to push mortgage rates near record lows.

"In our view, the housing market had undergone a dramatic over-correction during the prior five years, resulting in pent-up demand for housing purchases that would spark a rapid rise in housing starts," said Stephen Kim, an analyst with Barclays, in a note to clients.

The housing rebound can have a ripple effect that could help get the entire economy growing at a much stronger pace, which will add to more demand for housing.

Monday, December 10, 2012

The Top Investors and Billionaires Continue To Bet on the Housing Market Recovery

Hedge-Fund Manager Turned Billionaire Predicts Greater Housing Rebound

John Paulson, hedge-fund manager turned billionaire who made his money betting on the collapse of the housing market, is now seeing positive results in his recent residential investments as he rides the waves of the housing recovery, according to The Wall Street Journal.

A Paulson official reported that a $298.4 million real-estate fund managed by Paulson & Co. could be worth double its total amount invested if it were sold today. The real-estate fund acquired two hotel portfolios and made 11 land purchases.

However, Paulson stated Wednesday that he did not plan to cash much out right now. As the housing market continues to rebound, Paulson believes the fund could return several times its initial investment.

Saturday, December 8, 2012

Where Are The Billionaires Investing Their Money? In Real Estate and LOTS of It!

Japanese billionaire Akiro Mori -- like American billionaire and business wizard Warren Buffet -- is seizing on the current opportunities in the real estate market and now aggressively investing again.

Mori plans $1.2 billion real estate investments, his company’s first investment of this scale since 2008, as local real estate values recover.

Per, Mori is taking advantage of the yen’s strength to explore overseas opportunities for the first time as part of the company’s most significant investment since the 76-year-old declared the end of Japan’s real estate boom in 2008.

“This is the perfect timing to invest,” said Mori. "With interest rates being very low, that makes it easy to buy. Property in a desirable location is good because it tends to be the last to drop in value when the market is bad. Cheap properties tend to be the first to decline and last to recover.”

If you want to invest wisely, follow what the most successful business minds are doing. For the full story: