Urbansignum

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Warren Buffett is the world's 10th wealthiest man. He is primarily known as a stock market investor and also one of the most successful investors in the world. His theory and strategy of investment has been illustrated in a broader sense extending to real estate.

Firstly, Buffett advises to focus on the future productivity of the asset you are considering. If you don't feel comfortable making a rough estimate of the asset's future earnings (depending on your investment goals), just forget it and move on.

Secondly, just like investment in the stock market, the value of a property is largely derived from the potential cash flow.

Thirdly, hire a real estate professional. A professional is also source for expert advice on valuation and other local micro economic factors that will directly impact your investment. A professional understands the dynamics of investing in a particular area and can help you find the right investment for you.

Lastly, Buffett said that "no one ever get rich paying too much for something." There is a saying in real estate that you make your money when you buy, so its essential that you never overpay for a property.

Do you think he (Warren Buffett) stills lives in the same house he bought since 1958 because he loves his neighborhood?