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  1. #1
    FEAR n GREED JBmurc's Avatar
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    Default Buying Property in the USA

    -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/pro...rch/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
    "With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu

  2. #2
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    Default

    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


    Houston, TX
    485K
    4600 sq/ft.


    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/sh...0&fpart=1&vc=1

  3. #3
    FEAR n GREED JBmurc's Avatar
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    Yeah Dollar for dollar US homes are cheap and getting cheaper 400k in queentown might get you a nice 100sqm unit
    "With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu

  4. #4
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    Default

    wow!
    what beautiful homes,
    makes you wonder whats going on in this country.

  5. #5
    Member skinny's Avatar
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    That board really has some amazing mc mansions in it for $500k.

    e.g. http://forumserver.twoplustwo.com/sh...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!?

  6. #6
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    Default

    quote:Originally posted by skinny

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

    e.g. http://forumserver.twoplustwo.com/sh...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.


  7. #7
    FEAR n GREED JBmurc's Avatar
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    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
    "With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu

  8. #8
    FEAR n GREED JBmurc's Avatar
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    I also agree the time to buy is still 1yr+ away
    when the US property market is fully doom & gloom
    "With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu

  9. #9
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    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.


  10. #10
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    Good interesting posts Lakedaemonian, thanks.

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

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