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What is the secret that Buffett whispered to Petersburg? - Walla! Real estate


Buffett always said that the biggest losers in history are those who didn't see the opportunity. How is this related to the real estate market and how is it recommended to drive these days?

Ofer Petersburg Warren Buffett (photo: private album)

I have been asked for a long time what the tycoon Warren Buffet whispers in my ear?

Maybe it's time to reveal the secret (and maybe not), I'll just suggest that it comes very close to his very famous saying: "We simply try to start fearing when others are greedy, and become greedy when others fear."

What does all this mean for the real estate market? I had quite a few conversations with Buffett when I was accompanying the 'Ishkar' deal of my late friend Ethan Wertheimer. Buffett always said that the biggest losers in history are those who didn't see the opportunities that were sitting in front of them. Look at the real estate

market "N.

Delusional prices, huge demands and huge deals for apartment prices only a decade ago, during the social protest of the tents, we said they had reached a peak.

Since then they have increased by more than a hundred percent at best.

Just a year and a half ago, the prices were 20% cheaper and the interest rate was zero, and even then we said how much more we could raise the price.

So friends, it's possible, it's also possible - when in the old central station of Tel Aviv the prices are already approaching 60 thousand shekels per square meter in new projects.

It's time to go for it

Compared to about a year ago, we are in the mood of decreases, but how much did the prices really decrease?

Here is a sale, there is a sale.

Not really.

And 200-300 thousand shekels less, it's just a minor color correction.

The point is that there is no demand.

And this is exactly where we enter Buffett's mishnah.

There are no demands.

The market stops.

The market is at a standstill.

Don't rush to sell unless you have to.

Let's analyze the situation: the yield from an investment apartment today is lower than what you will get at the bank.

It's the truth.

But on the other hand, supply and demand.

The occupied demand is enormous.

People need an apartment.

In the last quarter of 2022 there was a 23% decrease in construction starts compared to last year.

New construction tenders are also left without contractors.

The government has also not really settled down yet and has long since ended its days of grace towards housing.

Without a clear policy the housing crisis will increase.

So what will happen?

Prices will continue to balance and go down.

People will fortify themselves in anticipation of a drop in prices.

Contractors will not access land marketing tenders.

The supply will decrease and the government will stutter until further notice.

And the prices?

In the end there will be no escape from elevators.

But people will wait and in the herd phenomena they will buy, when the prices go back up.

We were in this movie.

What do I suggest?

don't rush

This is true.

Prices will drop.

But if you found an apartment, you found an opportunity - go for it.

I'm sure you won't regret it in the long run.

Each apartment is a unique product, and unlike a similar car, you will not find it again.

  • Real estate


  • Warren Buffett

  • Ofer Petersburg

Source: walla

All life articles on 2023-03-26

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