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nissanneill 12-11-2010 02:58 AM

Current US Investment property thoughts?
 
Nothing to do with ovens, but a hot topic over here down under!
I have recently been looking at purchasing some of these incredibly cheap/discounted/forclosure properties with in the US as a result from the recent financial meltdown.
There is a good deal of hype into opportunities for the purchase by 'overseas investors' of these properties which on the surface appear 'too good to be true'.
I contacted my brother who lives north of LA and warns me to forget it, but some of the prices and publicity keeps me searching and wondering.
I am at the point of renewing my passport and taking a trip over there for a look myself.
I am reluctant to have 'blind faith' in an unknown and strongly advertising real estate agents as I am getting information from 2 sources with around a 400% difference in stated prices for properties within similar or the same areas.
Any thoughts from the US members would be appreciated.

Neill

Faith In Virginia 12-11-2010 01:36 PM

Re: Current US Investment property thoughts?
 
My thoughts are that there are three primary groups in the USA, Rich, middle,poor. In this current economic times the poor are still poor the rich are still rich and the middle is getting eaten up. So when these great investments come up you will be in competition with big corporations that suck these up for big profit. They also have a strong network system that lets them in on the deal before it becomes public. Housing prices are down so now is a good time to buy but you may not get the steal that you are looking for.

Tman1 12-11-2010 04:51 PM

Re: Current US Investment property thoughts?
 
Really... how come I haven't heard about these steals? and I live IN the States.

I think I'll stay away from assessment of why we are where we are.

RTflorida 12-11-2010 05:31 PM

Re: Current US Investment property thoughts?
 
There really are no more deals or steals than before. At any given time there are people and banks looking to unload a property quickly and cheaply, but this is not the norm. Housing prices were grosely inflated in much or the US, millions of people overspent or overborrowed on the imaginary equity they thought the had, due to the creative financing being offered.
People are walking away from their homes and mortgages, not just because they can't afford their recent, reset mortgage terms, but also because their home is only worth 40% - 50% of what it was when they took out the mortgage or equity line just a few years ago.
Most banks are not giving away the foreclosures either, they foolishly gave out these inflated mortgages and are unwilling to accept todays market value in a sale. I have seen 3 foreclosure sales in my neighborhood, none of them sold at auction, all 3 sat for several more months then the banks finally accepted offers at the current market levels.

If you shop around just like you normally would with the help of a very good realtor or real estate investor, you can probably get lucky at some point. There currently are no sure things in real estate, it will take time, energy, expertise, and luck. The real estate market is not expected to appreciate much in the next few years, so unless you find a deal/steal, be prepared to sit on the property long term.

RT

nissanneill 12-11-2010 10:32 PM

Re: Current US Investment property thoughts?
 
Thanks for the replies crew,
this is what I am talking about. See:

Fulton County Bank Foreclosures for Sale Fulton Repo Homes in GA

and have a dig around. I selected Georgia as an example but if you reduce the web address back to

Bank Foreclosures For Sale Foreclosure Homes For Sale Repo Homes

you can see any properties in your (better known) areas

Cheers.

Neill

brickie in oz 12-11-2010 10:44 PM

Re: Current US Investment property thoughts?
 
If you dont know the area, work thats available to the people, tenancy rates, current rental prices, etc then I wouldnt bother.
Its like buying cheap in say Moe in Vic, its always cheap and for a very good reason.

Buy in Oz, there are many good locations, a few that spring to mind (dont forget Im in Vic) , Ballarat, Melton, Warnambool, Moe...:rolleyes:, Hobart is also cheap too compared to the North Island.

stormy 12-12-2010 04:54 AM

Re: Current US Investment property thoughts?
 
I bought two old(1900) houses on a cobble stone street in Ashtabula Ohio for 23 grand total-no plumbing or electric, stripped out by copper thieves. A big lot of 16,000 sq. ft. The marina and food/drink district a stone's throw away. I looked for a year before I found the right place to invest in. And trust me, you would not want to spend a winter in one of those houses, the Erie shore is a nasty place in winter. But deals can be had in the mid-west if your willing to look.

nissanneill 12-12-2010 02:00 PM

Re: Current US Investment property thoughts?
 
Thanks crew for your comments.
It seems very tempting but I think that with the 12000km distance difference, I will give it a miss and just let the money sit in the bank where I know I will still have it in a few years, with no worries.
Property values here in Adelaide, South Australia are greatly inflated with a mean value close to Aus$400k BUT you also need to add around $20K for 'Stamp Duty' and also $3K 'land tax' as soon as you buy it which reduces your incentive to buy to rent.
Our govt is exceptionally greedy and puts off housing investment.

MERRY CHRISTMAS
and a safe, prosperous
NEW YEAR
TO ALL


Cheers
Neill

Lburou 01-01-2011 12:25 PM

Re: Current US Investment property thoughts?
 
There are local real estate professionsals in every corner of the USA. They spend a lot of time picking and choosing the good opportunities within their local area.

It will be difficult to come across the ocean and get to GA, then, make a deal that will pay off in time. Real estate values vary an unbelievable amount from town to town and region to region here in the US. What sounds like a steal may not be when you consider local values and local demand for property -not to mention local economies. Don't forget to consider the local tax rates -that will surprise you.

You have my best wishes in your endeavor.

Lb

brickie in oz 01-01-2011 10:42 PM

Re: Current US Investment property thoughts?
 
Australian investors could lose millions on US rental properties

In todays Melbourne Age Newspaper.


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