Monday, September 24, 2012

House Buying Tips from Mel Gibson

A compound in Malibu owned by divorced couple Mel Gibson and Robyn Moore Gibson has been sold. The Gibsons bought the house in 1989 for $3 million. Thanks in great part to Alan Greenspan money printing, the house was sold by the Gibsons for $9,261,250.

According to LaTi,the house is described as an "old world hacienda," the main house features hand-painted details, stone and hardwood floors, several fireplaces, six bedrooms and 51/2 bathrooms. The master suite has a sitting room with one of the fireplaces and two walk-in closets. The property includes three self-contained guesthouses, a two-story entertainment pavilion with a kitchen and fireplace, a separate media room, a gym, a lighted tennis court, a swimming pool, a spa and mature pepper, oak and avocado trees.

House prices are very low now, as are mortgage rates and it looks like Bernanke is about to start another round of money printing (if the money doesn't all end up as excess reserves). Gibson bought early into Greenspan's money printing. It's the best time to buy a house. This, this is likely a great time to buy a house ahead of the new money printing, if you plan to stay for sometime in the area where you are currently located.

Lock in the low mortgages rates long term and, even better, try to get an assumable mortgage so that you can sell the low rate in addition to your house, when you are ready to sell. These rates are not going to stay low forever. Once they start to move, they'll be at 7.5% in no time and then at double digit rates.


  1. If interest rates surge as you predict, won't that have a downward effect on real estate prices? How do you know that the upward effect of devaluing the dollar will be dominant?

  2. I think it depends on the area. Keep in mind that RE market is always local. I´m from Canada and two major markets of Vancouver and Toronto are very different. While Vancouver is currently experiencing a price cooling and is prepared to go down with the prices, condo boom in Toronto still helps to rise prices (for 3.17 % October Market Report), even though not many condos are being sold right now (its -14 % down from the last year).

    So it is hard to find ANY logic in it!