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John Paulson Made Billions By Betting Against Mortgages, And Today He Says A House Is The Best Investment You Can Make (XHB)

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george soros james simons john paulson phil falcone ken griffin

Hedge fund manager John Paulson famously became a billionaire during the financial crisis by shorting, or betting against, subprime mortgages.

Effectively, he bet against the housing market.

But now he thinks that buying a house is "the best deal investment you can make."

Paulson expressed this earlier today at CNBC's Delivering Alpha conference

One of the reasons why he believes a house is attractive is because mortgages are just so cheap.

"Today financing costs are extraordinarily low," Paulson said during the interview with CNBC anchor Melissa Lee. "You can get a 30-year mortgage somewhere around 4 and a half percent."

"The cost of owning is somewhat less than the cost of renting. And if you rent, the rent goes up every year. But if you buy a 30-year mortgage, the cost is fixed. So I think it, you know, is still a very attractive investment."

However, Paulson was speaking specifically for owner-occupiers. In other words, people who would actually live in the homes they were buying.

"To buy it as an investment and rent it out, I'm not so enamored with that concept," he said.

During last year's Delivering Alpha conference, Paulson expressed similar thoughts.

SEE ALSO: 13 Mindblowing Facts About Texas

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