On The Market Warren Buffett Sounds Off on Real Estate, Boomers Leaving “Problem” for Gen Y
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May 26, 2025 Warren Buffett has made waves with his views on why real estate may not outpace stocks. Are millennials fully prepared for the massive transfer of wealth from boomers? Many find inherited homes come with burdens like renovation costs and high taxes. There's a shift in the vacation home market, creating new short-term rental opportunities. Plus, rising Treasury yields could shake up investment strategies. The discussion is packed with insights for those navigating real estate in uncertain times.
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Boomer Real Estate Burdens Millennials
- Boomers are passing down $19.7 trillion in real estate to millennials, but many inherit burdens, not benefits.
- Issues include unpaid mortgages, high renovation costs, property taxes, and unexpected capital gains taxes without proper planning.
Renovation Costs Can Offset Inheritance
- Dave Meyer shared how his parents had to renovate his grandparents' house before selling it.
- They faced significant out-of-pocket expenses, defeating the idea of an effortless benefit from inheritance.
Plan Ahead for Estate Transfers
- Have early estate planning conversations with your parents about property to avoid probate and huge tax burdens.
- Involve advisors and CPAs to navigate complex state laws and estate tax implications.
