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JBmurc
18-07-2007, 08:40 AM
-With USD/NZD dollar massively in NZD'er favour
-The US Property market under pressure with alot of forced sales
read somewhere of houses selling for a third of the fair value in good areas.
-And with worse to come for US property market maybe a buy in the doom make serious $$$$$ once it recovers with the NZD/USD

http://www.remax.com/residential/property_search/index.aspx

-Anyone own or are looking to buy in the US [?]

P.S-Jbmurc is waiting for portfilo to reach 1mill before buying
hopefully 6-12months away;)

axion
18-07-2007, 10:04 AM
Seems to be a very good opp, tbh.

There was a thread on another forum that I frequent, "What does 500k buy in your area", when comparing the equivalent in NZD and seeing what some of the Americans are getting for the money, not much in NZ comes close (well, in wellington at least). Especially in Texas, tbh.

eg's:

Fort Worth, TX
$400,000
3 bed, 3 bath, 3000 SF
http://www.kadenhomes.com/images/bg_main.jpg

Houston, TX
485K
4600 sq/ft.
http://i85.photobucket.com/albums/k68/bnobs79/hr1804850-1.jpg

Some nice swedish deals too, including "3 properties for $520k, plus 9,5 acres of land on 4 different islands".

Link to thread here: http://forumserver.twoplustwo.com/showflat.php?Cat=0&Number=11036892&page=0&fpart=1&vc=1

JBmurc
18-07-2007, 02:27 PM
Yeah Dollar for dollar US homes are cheap and getting cheaper 400k in queentown might get you a nice 100sqm unit

neopole
18-07-2007, 04:57 PM
wow!
what beautiful homes,
makes you wonder whats going on in this country.

skinny
18-07-2007, 06:32 PM
That board really has some amazing mc mansions in it for $500k.

e.g. http://forumserver.twoplustwo.com/showflat.php?Cat=0&Number=11036892&page=0&fpart=8&vc=1

My nose hasn't twitched this much for a while....just how does one go about investing in US residential real estate!?

lakedaemonian
23-07-2007, 07:05 AM
quote:Originally posted by skinny

That board really has some amazing mc mansions in it for $500k.

e.g. http://forumserver.twoplustwo.com/showflat.php?Cat=0&Number=11036892&page=0&fpart=8&vc=1

My nose hasn't twitched this much for a while....just how does one go about investing in US residential real estate!?



Buying property in the US is easy.

FINANCING a property...if required, would be a bit more challenging(though still possible) given the current mortgage debacle facing the US and the world.

I just spent close to a month in the US and here's what I found when traveling through California, Michigan, Colorado, Tennessee, Pennsylvania, and New York:

Recent build McMansions...where entire housing developments spring up from nothing(much like the enticing photos of examples above)...run away...don't walk.

Why?

Their construction is often shoddy, living comfortably in them is based on eternally cheap energy(try $1000US a month energy bills in stifling hot or freezing cold weather as well as long commutes to these exurbs), and many of the inhabitants are stretched to the breaking point maintaining a thin vaneer of pseudo-affluence dependant upon record low interest rates to maintain the facade.

I would strongly recommend against investing in middle-class and pseudo-affluent housing in the US pretty much anywhere based on what I saw...which included freshly built housing developments littered with for sale signs.....it's not yet time to invest in such housing that hasn't hit rock bottom yet.

In my opinion, the best opportunities lie in the bottom or the top.

Multi-unit working class housing in or adjacent to growing cities may be good value long-term partially due to the exchange rate and the real estate hit being taken in the US right now.

Another opportunity I see is WELL ESTABLISHED and truly affluent/wealthy neighbourhoods. The housing boom continues.

I was blown away at the building boom fueled by mostly entrepreneurial wealth in places I never expected it...like Detroit......currently in the death throes of a dying auto industry.

I spent a LOT of time with a high-end architect/builder/entrepreneur who's backlog of work has never been longer in his 30 year career.

There's limited demand for renting out such properties, but capital gain value for high end quality housing still looks quite good for at least the short-to-medium term.

If I were looking to invest in high-end housing right now, I'd be looking at smaller, energy efficient homes in affluent neighbourhoods with reasonable property taxes and outstanding school districts as a possible rental opportunity.

The best point I could offer Kiwis who right now are enjoying high property values and a high currency looking to invest in US property should remember the point that if something looks too good to be true it probably is...in particular McMansions.

Energy costs, distance to shopping/work, and often very high property taxes(rates) and insurance in coastal areas should be key drivers in looking past the thin vaneer of pseudo-affluence McMansions offer.

JBmurc
23-07-2007, 08:47 AM
Thanks for the imfo Lakes personal I'm looking sub 200k in the nothern states for rental property somewhere close to the ski fields(love my snowboarding)a managered 1-2brm apartment would suit like what we have here in Queenstown 3-4% yeild with 4weeks a year use
Is'nt the home loans in the states like 6-7% or lower if I put in say 30% cash the banks would be keen

JBmurc
23-07-2007, 08:52 AM
I also agree the time to buy is still 1yr+ away
when the US property market is fully doom & gloom

lakedaemonian
23-07-2007, 12:10 PM
quote:Originally posted by JBmurc

Thanks for the imfo Lakes personal I'm looking sub 200k in the nothern states for rental property somewhere close to the ski fields(love my snowboarding)a managered 1-2brm apartment would suit like what we have here in Queenstown 3-4% yeild with 4weeks a year use
Is'nt the home loans in the states like 6-7% or lower if I put in say 30% cash the banks would be keen


It looks like you can get a 15 year fixed for about 6% in the US.

Something to consider long-term might be Western Canada for a summer/winter holiday investment property...mortgage rates are only slightly higher, and direct flights to Vancouver with Air NZ are starting up soon.

Whistler is only an hour-ish away from Vancouver...which is a pretty cool city in my opinion.

PLUS, I THINK I recall them getting the 2010 Winter Olympics???

Might be worth having a look...even if kiwi appreciation against the Loony hasn't been as much against the USD...I'd probably want to be sitting on Loony equity in 10 years rather than USD equity.

PLUS, all those high paid Canuck energy industry workers need somewhere to go on holiday.

Sideshow Bob
23-07-2007, 05:16 PM
Good interesting posts Lakedaemonian, thanks.

Getting cheaper all the time - dollar just cracked 80c....

skinny
23-07-2007, 08:37 PM
Thanks for the info from me too lakedaemonian.

After a bit more research and talking to ppl I am narrowing down on some of the established university towns (e.g. Ann Arbor MI, Boulder, CO). Any thoughts on these?

stephens.pc
24-07-2007, 08:06 PM
My sister and brother-in-law live in Boulder. Seems to be a very forward thinking, younger generation town. Also its proximity to ski fields must be an advantage.

skinny
01-08-2007, 09:50 PM
My in-law is in Boulder at the moment checking it out ;)
But by all accounts the housing slowdown is getting worse in the US so there is certainly no hurry.

Oiler
25-08-2007, 06:38 PM
I also agree the time to buy is still 1yr+ away
when the US property market is fully doom & gloom

JB ... long time property owner here. Have owned property in So Cal since the late 80s... been through a couple of dumps but certainly have come out on the winning side.

My problem now is how or the right time to get the returns back to NZD.

Moved back to NZ 4 yrs ago and intend to stay here :confused:

I woud agree with a previous poster.... the time may well be a year away to get into the US market.

JBmurc
26-08-2007, 11:35 AM
From what I've read of late with USD I'd be buying Gold silver bullion or shares in some good US CAN miners
or convert the cash into YEN
then sit back and relax and not worry about bringing the cash back unless I really had too.

Alpine Dragon
26-08-2007, 03:14 PM
I have been pondering whether or not I should begin to acquire US property Myself. But 2 main concerns come to mind...

1. Finding reliable and trustworthy property managers. I have read numerous problems with Property managers from Aussie investors who brought property in the US. What happens if you choose a property manager and he/she turns out to be unfit for the job? What is stopping them from fleeching you or just being so uninterested about doing their job? How do you keep a leash on them essentially, if you are so far away? Basically this concern perhaps presents the biggest road block to me just setting foot in the US and buying up property en masse and what will either make or break the venture.

The same concern I believe extends to the rest of the team, Your lawyer, Accountant etc.

2. Lending. What types of US lenders are willing to lend to foreign investors these days. last time I inquired, many wanted your Social Security Number. Additionally With the sub prime Mortgage scare, will this possibly present some new challengers in arranging financing? Prefer not to have to pay outright for real estate investments.

Thanks for any thoughts.

JBmurc
25-10-2007, 08:37 AM
sent this guys an e-mail awhile ago will be asking them Q's on investing there
-Having at look at some of there listings propertys for 50,000usd-80,000 with rental yeilds over 20% sounds to good to be true (don't even need to take a loan on)


http://www.globalpropertydeals.com

JBmurc
25-10-2007, 08:38 AM
TYPE ResidentialSTYLE ApartmentLAND SIZE m2PRICE $55,000EST. RENT $1,125EST. ROI 24.545 %UNDER GREAT PROPERTY MANAGEMENT.
3 INCOME STREAMS - NOTHING TO DO.

Two level Duplex and Separate self contained 1 bedroom cottage on 1 title. $12k spent on rehab work in the last 20 months.

Upper unit : Large 4 bedroom unit - rented below market at $400pm. Previously rented at $520pm.
Lower unit : 2 bedroom unit rented at $400 pm.
Cottage: Rented at $325pm

Total rents: $1125pm ($13500) with upside to $1295pm($15540)
City, Sewer, Water and Garbage taxes approx $2800pa

Other features include: University Area, New Roof, Aluminium siding, separate utilities, competant property management.

Vendor is willing to pay 2 months rent on any unit if any unit is not occupied at time of closing. Buyer to split closing costs 50/50 with vendor.

***********This has been reduced from $65K for a cash buyer only. Contact owner now************

JBmurc
26-10-2007, 08:01 AM
The Buffalo deals are very good yeilds if you have good PM in place as you rightly point out. You would need to set up a local US account to accept rents, and yes – at the end of the year – like in Australia/NZ you pay tax on profits. Some I know have a mix of high yeilding Buffalo deals – and newer property in Texas – net result = no or little tax.



There is also a double tax treaty in place meaning you don’t pay tax twice on the same profit made overseas – to the IRD



Have a look at out FAQS page – some of it is covered there. If you want to have a chat about considering joining our tour, let me know. It really is the best education to buying overseas

The Great Gold Guru
27-10-2007, 07:28 AM
Some of the lead articles on the www.money.cnn.com website today .....

2 million homes lie empty in USA

USD continues to fall

Gold up at 27 year high

Oil approaches $100/bbl


Now tell me why you would buy into the US property market ???

The Great Gold Guru
27-10-2007, 07:32 AM
PS ... If you are going to invest in property in USA ... buy a gold mine, or the next best thing .... a dairy farm !! ... not a condo in a decaying city like Buffalo.

Better buying a dairy farm in NZ .... even at $50,000 / ha. , the USD is TOAST !!!!!!

Disc: Own a share in 8 dairy farms in Canterbury

George
28-10-2007, 07:02 AM
Melbourne prices soaring, along with the stockmarket - will NZ and Aus be different to the USA or is there usually a lag???

http://www.theage.com.au/news/Business/Median-house-price-soars-in-Melbourne/2007/10/27/1192941379124.html

JBmurc
08-01-2013, 07:39 AM
yes kw i was thinking that I hope noboby jumped in when this blog 2007 was first posted.

Yet aussies/kiwi's keep pushing up local property to stupid levels ...If I had the spare cash I would certainly be looking to buy a investment property in the USA people still need a roof over their heads if the yields are good and the area has good capital gain potential etc ...I like the idea of buying a property that could return the full price of the purchase price in well under 10 years

when I do have the cash able to invest 50-60k NZD(40-50k USD) I'd be looking at dealing with the likes of the below company that does all the complex work needed shown in link below....

Fact is you can buy a large 5bdrm well built family home returning upwards 20% gross yield with round a tenth of the money your'd need to buy an average Auckland house returning much less

http://toprentalreturnsusa.com/our-service.asp

Dej
07-02-2013, 12:12 PM
Anyone looked any further into this?

Okebw
13-07-2014, 04:28 PM
They can secure me interest rates for a 10-30 year mortgage of 6-7%.



That's a pretty poor interest rate as far as the U.S is concerned.
The average 30 year rate is about 4.2% with shorter terms having correspondingly lower rates.

http://www.bankrate.com/national-mortgage-rates/

Okebw
13-07-2014, 05:02 PM
My bad sorry. I assumed you either already had citizenship or were intending to get it.

NSW Guy
17-07-2014, 07:12 PM
But you do have to be in the USA personally to start a company and to open up bank accounts.... but this can be done in a week.
Rates get lower the more you loan and if your loan is less than 60% of the value of the property. I was thinking of buying with cash anyway.

Actually, no. You can open up a company remotely without being in the US.

You can also open up a bank account remotely, but it is difficult. The challenges are obtaining an ITIN (International Tax ID Number) and also proving your identity to the bank when you can't visit a branch. While it is possible to do both with out visiting the US (via the assistance of US authorised personel) most people just end up visiting the US to do the deed. That is what I did.

Slam dunk
22-08-2014, 09:21 AM
Hi guys, my wife is a US citizen but we live in NZ. We want to buy property in NZ. Could we take out a mortgage with a US bank to fund this? (Their interest rates are much better than NZ)

fungus pudding
22-08-2014, 09:24 AM
Hi guys, my wife is a US citizen but we live in NZ. We want to buy property in NZ. Could we take out a mortgage with a US bank to fund this? (Their interest rates are much better than NZ)

Of course you can as long as the lender agrees, and they almost certainly will.

Slam dunk
25-08-2014, 04:40 PM
Of course you can as long as the lender agrees, and they almost certainly will.

Thanks Fungus!

iceman
26-08-2014, 09:56 AM
Hi guys, my wife is a US citizen but we live in NZ. We want to buy property in NZ. Could we take out a mortgage with a US bank to fund this? (Their interest rates are much better than NZ)

As FP already said, no problems doing this if the lender agrees. Interest rates are definitely much lower in the US but don't forget the FX risk if you live in NZ and have your income in NZ$. Can be much greater than the interest rate differential !

GTM 3442
29-08-2014, 09:55 PM
Hi guys, my wife is a US citizen but we live in NZ. We want to buy property in NZ. Could we take out a mortgage with a US bank to fund this? (Their interest rates are much better than NZ)

You certainly can, but future exchange rate movements could leave you naked up a gum tree if you were intending to use NZ funds to service the loan.

Aaron
02-09-2014, 08:02 AM
You certainly can, but future exchange rate movements could leave you naked up a gum tree if you were intending to use NZ funds to service the loan.
I would have thought access to a 30 year 4.5% fixed mortgage from a US bank would be all you need. Provided your net yield on the rental is over say 6%. Also provided you can find a good tenant the US federal reserve should take care of the required inflation to get rid of your debt. The rent should cover it anyway.
Trips to US become tax deductible. I am just not sure how I find the property, how I manage it and if a US bank will lend to me and give me an amazing 30 fixed interest rate.
I wouldn't be surprised if it were cheap Chinese and us money pushing up property prices in NZ.

GTM 3442
03-09-2014, 02:35 AM
I would have thought access to a 30 year 4.5% fixed mortgage from a US bank would be all you need. Provided your net yield on the rental is over say 6%. Also provided you can find a good tenant the US federal reserve should take care of the required inflation to get rid of your debt. The rent should cover it anyway.
Trips to US become tax deductible. I am just not sure how I find the property, how I manage it and if a US bank will lend to me and give me an amazing 30 fixed interest rate.
I wouldn't be surprised if it were cheap Chinese and us money pushing up property prices in NZ.

There seem to be a lot if "I would have thought"s, "would be"s, "provided that"s, "Also provided that"s,"should"s, "I am just not sure how"s, "how I"s in there.

Would the 2001 exchange rate of NZD1=USD0.33 have any effect on your workings?

. . . if you were intending to use NZ funds to service the loan. But you don't seem to be intending to do that.

Aaron
03-09-2014, 07:51 AM
No I have no real plans just spit balling as they say in the US of A. I would have thought that the 30 fixed interest rates offered by the US banks would be the big draw card, then only your initial deposit is exposed to the vagaries of exchange rate fluctuations. Set and forget for the next 20-30 years exchange rate risk minimal interest rate risk non-existent. I am guessing the Federal Reserve will just about guarantee inflation (they haven't even got the helicopters out yet). Rental yield 6% interest rate 4.5%. Distance and cost of airfares could be a problem but if you have family in the US like slamdunk then I would be doing more than spitballing. Next problem, where to invest in the US, it looks like a big market.
Funding from NZ throws up the big problem of exchange rate fluctuations.
The Federal Reserve could be successful in destroying the $US(bad news for NZ funded investment)

Snapper
03-09-2014, 02:57 PM
Just heard a very cautionary tale about investing in the US housing market from a friend. She bought a number of houses over there which rapidly turned into a whole lot of trouble. She's now out of it but lost a good deal of money in the process. The big yields might look attractive but trying to deal with corrupt property managers was a nightmare. She went over there to try to sort it out but these guys were scary. Tread carefully.