What does self-made billionaire Warren Buffett say? His advice is to buy.

As reported on CNBC.

When it comes to homeownership, there are people who think it’s “an escalator to wealth” and others who claim it’s “the American nightmare.”

What does self-made billionaire Warren Buffett say? His advice is to buy.

Real estate is a valuable asset “for a great many people,” particularly for families that plan on being in the same location for many years, he tells CNBC: “If you know you’re going to live in a given area, or think it’s very likely, for a considerable period of time and you’ve got a family, the home is terrific.”

One of the reasons a home is a terrific buy is because of the 30-year mortgage.

The investor took out a 30-year mortgage in 1971 when he bought his Laguna Beach, California, vacation home, which he recently listed for $11 million: “When I bought it for $150,000, I borrowed some money from Great Western Savings and Loans. So I probably only had $30,000 of equity in it or something like that. It’s the only mortgage I’ve had for 50 years.”

A 30-year mortgage is “the best instrument in the world,” Buffett says. “Because if you’re wrong and rates go to 2 percent, which I don’t think they will, you pay it off. It’s a one-way renegotiation. It is an incredibly attractive instrument for the homeowner and you’ve got a one-way bet.”

While his six-bedroom, seven-bathroom seaside place is for sale, don’t expect his house in Omaha, Nebraska, which he bought in 1958 for $31,500, to go on the market anytime soon. “I wouldn’t trade it for anything,” says Buffett.

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