It all makes sense
Want to know why billionaires like hedge fund manager John Paulson are buying building lots left and right? Is it because they want to give the builders a private bailout, is it because their targets in Arizona, Colorado and Nevada are performing well and they’re betting on those areas?
Nope. There is a rush to buy land because if the investors hold all the prime/desirable land that homebuilders will eventually need in order to make their comeback in these poorly performing areas, builders will have to come to them. Builders are counting on snatching up land at distressed prices and guess who they’ll have to go through? The investors that are betting on the future.
Connie Madon of BloggingStocks.com said, “What this indicates it that even in the midst of a brutal housing downturn, some companies are willing to step up and take a risk on the future. If new home building picks up this year, we could see the bottom in the housing debacle.”
So, is this a dumb bet or is this a genius move?
