Just shows you how we are being ripped off here for housing :(

http://www.news.com.au/money/property/investors-snap-up-homes-for-cost-of-a-car/story-e6frfmd0-1225948879804


Quote:

MUM-AND-DAD investors are buying bargain-priced houses in the United States for the cost of a new car. They are cashing in on a combination of a rising Australian dollar and a depressed US property market which has seen recently built five-bedroom houses in cities such as Atlanta, Georgia, selling for as little as $35,000 - or the price of a new Holden Commodore. They are also avoiding excessive stamp duty costs on buying property in Australia. More than 200 people attended a seminar about buying US houses at Adelaide's Hilton Hotel last Monday. The cheap US prices have seen a surge of Australian agents setting up businesses promising to match buyers in Australia with potential US rental properties. Vincent Selleck, of 888 US Real Estate, based in NSW, said he had seen a "dramatic increase" in inquiries since the Aussie dollar reached parity with the greenback. With the dollar reaching a 28-year high of $US1.01 on Thursday, Mr Selleck expected interest to continue climbing. "Investors are now seeing incredible value buying in America where they can get homes that were $300,000 in 2007 for $35,000 with cash (rental) returns between 15 to 25 per cent net after expenses," he said. He said most Australian investors were buying houses, townhouses and apartments where "the cash price today is a fraction of their former value or cost of replacement" in the expectation of a US economic recovery and appreciating US dollar over the long term. While the median Adelaide house price hovers around $400,000, houses in the popular tourist destination of Miami are selling for as little as $14,000. The US property market devaluation came on the back of the sub-prime credit collapse, which sparked the global financial crisis in late 2008. One South Australian investor to take advantage of the "great investment opportunities" in the US is Sue Wright who, with husband John, is building a property portfolio to fund their retirement savings. Mrs Wright said "outrageous" land tax and stamp duty costs in SA encouraged the couple to "capitalise on a perfect storm of conditions" and invest in the US, where property taxes were relatively cheap. Mrs Wright's first experience investing in the US had encouraged her to look at buying more properties, and she attended this week's seminar at the Hilton Hotel by finance advice firm Knowledge Source. "We started investing in properties in Adelaide in 2001 and have four now but I've never seen such economic conditions in my lifetime and after our superannuation went backwards we thought investing in the US was such a great opportunity," the 60-year-old said. The Wrights bought a duplex in South West Florida - each semi-detached having a double garage, three bedrooms and two bathrooms - via an internet based real estate company for $US96,000 ($101,000) in March. They rent it out for a net $12,300 a year. "We thought we would sit on it for a few months and see how things panned out, and we have had no trouble with the tenants so now we are looking to invest in more properties," said Mrs Wright, who runs a small painting business.

You can probably purchase homes or plots directly adjacent major metropolitan areas for next to nothing in certain American rustbelt urban areas, but the question of course is, why would you?!! If you actually look at some of these places (Detroit, Cleveland, Atlanta, etc.) on Google Earth or Street Level you would notice that they almost look like rural areas. Streets are conspicously absent of any development whatsoever and houses have been torn down with no trace of their previous existence remaining. These cities have essentially been eviscerated by minority pandamonium and are slipping into the third world.

http://www.amren.com/ar/2005/05/DETROI1sml.JPG
http://www.amren.com/ar/2005/05/DETROI2sml.JPG

JC Denton wrote on Nov 7^th, 2010 at 11:56am:

You can probably purchase homes or plots directly adjacent major metropolitan areas for next to nothing in certain American rustbelt urban areas, but the question of course is, why would you?!! If you actually look at some of these places (Detroit, Cleveland, Atlanta, etc.) on Google Earth or Street Level you would notice that they almost look like rural areas. Streets are conspicously absent of any development whatsoever and houses have been torn down with no trace of their previous existence remaining. These cities have essentially been eviscerated by minority pandamonium and are slipping into the third world.

Yes unless you know the place very well you could be buying a lemon.

JC Denton wrote on Nov 7^th, 2010 at 11:56am:

You can probably purchase homes or plots directly adjacent major metropolitan areas for next to nothing in certain American rustbelt urban areas, but the question of course is, why would you?!! If you actually look at some of these places (Detroit, Cleveland, Atlanta, etc.) on Google Earth or Street Level you would notice that they almost look like rural areas. Streets are conspicously absent of any development whatsoever and houses have been torn down with no trace of their previous existence remaining. These cities have essentially been eviscerated by minority pandamonium and are slipping into the third world. http://www.amren.com/ar/2005/05/DETROI1sml.JPG http://www.amren.com/ar/2005/05/DETROI2sml.JPG

Did you watch the movie Gran Torino with Clint Eastwood?

You'd have to have rocks in your head to buy an investment home in Highland Park.

No. My friend Coral Sea is from Wisconsin (I believe that is where the Hmong, the minority group featured in that movie are primarily located) and has told me about it.

Gran Torino?

They have bulldozed entire suburbs in some of these places. You may have to pay rates, have no rental income, pay an agent to maintain it, then in 10 years time the house falls down due to lack of maintenance or gets bulldozed along with the rest.

I remember in the news a long time ago people from down south getting ripped off  by buying flood prone swampland without actually seeing the property first. Bad idea.

Real estate in America is much different to Australia. There are block upon block of boarded up houses where the occupants have walked away from a mortgage they could no longer sustain. There are whole suburbs are devoid of life, except for crack addicts.

If it was such a good deal, why are the American investors not buying these places? not everyone is broke over there.

I think the Australian housing psyche has taken control of the Aussies that are going over there to buy up. It's not like it was here, where prices have boomed, up until now.

It's the American investors trying to flog off their investment houses to other investors, much like the banks did with the sub-prime loan packages. Why would the American real estate tyrants come over here to sucker us into buying their crap? because their own people know the houses are worthless.

Ex Dame Pansi wrote on Nov 7^th, 2010 at 4:25pm:

Real estate in America is much different to Australia. There are block upon block of boarded up houses where the occupants have walked away from a mortgage they could no longer sustain. There are whole suburbs are devoid of life, except for crack addicts. If it was such a good deal, why are the American investors not buying these places? not everyone is broke over there. I think the Australian housing psyche has taken control of the Aussies that are going over there to buy up. It's not like it was here, where prices have boomed, up until now. It's the American investors trying to flog off their investment houses to other investors, much like the banks did with the sub-prime loan packages. Why would the American real estate tyrants come over here to sucker us into buying their crap? because their own people know the houses are worthless.

The situation is definitely suss - and many of the houses that have been boarded up have also been stripped of recyclable metals (especially copper pipes and wiring)...

What semblance of a society has the worship of extreme capitalism 'created' by default!?

Considering we are in the process of building a new home, the best quote we got for a 25 square home the way we wanted it is about $219k, I'd like to know how housing prices are supposed to crash.

Even if land crashes, it still costs what it costs to build a house.

"Investors are now seeing incredible value buying in America where they can get homes that were $300,000 in 2007 for $35,000 with cash (rental) returns between 15 to 25 per cent net after expenses," he said.
If the houses can be bought that cheaply, why would anyone be paying such high rent?
There must be thousands of investors in the USA who would pick up this bargains.
This definitely sounds to good to be true, and probably is.

hawil wrote on Nov 7^th, 2010 at 8:21pm:

"Investors are now seeing incredible value buying in America where they can get homes that were $300,000 in 2007 for $35,000 with cash (rental) returns between 15 to 25 per cent net after expenses," he said. If the houses can be bought that cheaply, why would anyone be paying such high rent?

Some people don't want to live in neighbourhoods where there's a risk of being rolled by the Cripz and MS-13 every time they leave their house. You couldn't even pay me to live in these types of communities.

Verge wrote on Nov 7^th, 2010 at 5:35pm:

Considering we are in the process of building a new home, the best quote we got for a 25 square home the way we wanted it is about $219k, I'd like to know how housing prices are supposed to crash. Even if land crashes, it still costs what it costs to build a house.

Because it is only worth what the bigger fool is willing to pay for it ;)

Sir lastnail wrote on Nov 8^th, 2010 at 12:26am:

Verge wrote on Nov 7th, 2010 at 5:35pm: Considering we are in the process of building a new home, the best quote we got for a 25 square home the way we wanted it is about $219k, I'd like to know how housing prices are supposed to crash. Even if land crashes, it still costs what it costs to build a house. Because it is only worth what the bigger fool is willing to pay for it ;)

Really, considering I went through the process of quoting up to owner builder, we wouldnt have got by all that much cheaper.

Steel costs what it costs, so does concrete, bricks, plaster, tiles and carpets.

Tradesman also cost what they costs, and Im lucky, but plenty of others are paying big hourly rates because if they dont the builders just go onto the stimulus projects and make a killing there.

Also, with all the environmental regulations now, that decent dollars there too.

When you factor in some big ticket items like solar hotwater costing $4.5k, aircon at $5k, tiling at $12k, stove at $3k, higher ceilings for $3k, bricks at $7.5k and another $8.5k to lay them, carpet for $3k, blinds and curtains and shades for $5k, driveway and footpaths for $6k, fencing for $5k and thats just a few easily identifiable ones and thats already a quarter of the cost.  I havent even gone near plastering, painting, roofing, plumbing, kitchens and bathrooms a chippy.

Verge wrote on Nov 8^th, 2010 at 9:30am:

Sir lastnail wrote on Nov 8th, 2010 at 12:26am: Verge wrote on Nov 7th, 2010 at 5:35pm: Considering we are in the process of building a new home, the best quote we got for a 25 square home the way we wanted it is about $219k, I'd like to know how housing prices are supposed to crash. Even if land crashes, it still costs what it costs to build a house. Because it is only worth what the bigger fool is willing to pay for it ;) Really, considering I went through the process of quoting up to owner builder, we wouldnt have got by all that much cheaper. Steel costs what it costs, so does concrete, bricks, plaster, tiles and carpets. Tradesman also cost what they costs, and Im lucky, but plenty of others are paying big hourly rates because if they dont the builders just go onto the stimulus projects and make a killing there. Also, with all the environmental regulations now, that decent dollars there too. When you factor in some big ticket items like solar hotwater costing $4.5k, aircon at $5k, tiling at $12k, stove at $3k, higher ceilings for $3k, bricks at $7.5k and another $8.5k to lay them, carpet for $3k, blinds and curtains and shades for $5k, driveway and footpaths for $6k, fencing for $5k and thats just a few easily identifiable ones and thats already a quarter of the cost.  I havent even gone near plastering, painting, roofing, plumbing, kitchens and bathrooms a chippy.

There in lies the rub. They wouldn't be quoting so much if it wasn't for the stupid and wasteful stimulus package feeding easy money to them, meaning they can pick and choose in what should otherwise be the time of a property downturn !!

Again we see tax payers money being used to prop up greedy trades people. And what is the payoff to the consumer ? NOTHING !! You end up paying more :(

I think taxpayers will be used to prop up everything.
..that's our purpose.

Sir lastnail wrote on Nov 8^th, 2010 at 10:24am:

Verge wrote on Nov 8th, 2010 at 9:30am: Sir lastnail wrote on Nov 8th, 2010 at 12:26am: Verge wrote on Nov 7th, 2010 at 5:35pm: Considering we are in the process of building a new home, the best quote we got for a 25 square home the way we wanted it is about $219k, I'd like to know how housing prices are supposed to crash. Even if land crashes, it still costs what it costs to build a house. Because it is only worth what the bigger fool is willing to pay for it ;) Really, considering I went through the process of quoting up to owner builder, we wouldnt have got by all that much cheaper. Steel costs what it costs, so does concrete, bricks, plaster, tiles and carpets. Tradesman also cost what they costs, and Im lucky, but plenty of others are paying big hourly rates because if they dont the builders just go onto the stimulus projects and make a killing there. Also, with all the environmental regulations now, that decent dollars there too. When you factor in some big ticket items like solar hotwater costing $4.5k, aircon at $5k, tiling at $12k, stove at $3k, higher ceilings for $3k, bricks at $7.5k and another $8.5k to lay them, carpet for $3k, blinds and curtains and shades for $5k, driveway and footpaths for $6k, fencing for $5k and thats just a few easily identifiable ones and thats already a quarter of the cost.  I havent even gone near plastering, painting, roofing, plumbing, kitchens and bathrooms a chippy. There in lies the rub. They wouldn't be quoting so much if it wasn't for the stupid and wasteful stimulus package feeding easy money to them, meaning they can pick and choose in what should otherwise be the time of a property downturn !! Again we see tax payers money being used to prop up greedy trades people. And what is the payoff to the consumer ? NOTHING !! You end up paying more :(

Although off topic a little, my trades are pretty good.
Tiler is only $20 an hour (he owes me a favour), the brickie is only on 85 cents a brick and has to supply sills, sand and cement.

The chippy is only on about $55 and we are getting away with doing our own driveways, fencing and footpaths (builders on both sides of the family who owe me for all the GST and tax work I do without charge).

The dearest is the plumber at $66 an hour.

To me those rates were pretty fair.

Brickies in Wagga doing a truckload of stimulus work there are on something like $2.20 a brick.  Absolutley astounding cosidering a decent brickie worth his metal can put down a thousand a say.

A patient I once looked after told me he brought Units at $17,000 Aust each. :o
Were they in down-town ghetto boulevard?
Can investors afford to fly over and  'take care' of their properties from being 'trashed'?


in the end, I think its finally good to see Australia 'own' America in some way. "Get to work ya varmants!" ;D

Amadd wrote on Nov 8^th, 2010 at 10:49am:

I think taxpayers will be used to prop up everything. ..that's our purpose.

Yup, privatise the profits and socialise the losses - that is what unbridled capitalism delivers in practice...

JC Denton wrote on Nov 7^th, 2010 at 9:08pm:

hawil wrote on Nov 7th, 2010 at 8:21pm: "Investors are now seeing incredible value buying in America where they can get homes that were $300,000 in 2007 for $35,000 with cash (rental) returns between 15 to 25 per cent net after expenses," he said. If the houses can be bought that cheaply, why would anyone be paying such high rent? Some people don't want to live in neighbourhoods where there's a risk of being rolled by the Cripz and MS-13 every time they leave their house. You couldn't even pay me to live in these types of communities.

Something else to consider (apart from the risk of gang violence) is WHY the houses are so cheap...
What's the point of buying a cheap house as a rental investment, in an area with no work??
No one could afford to rent it, and if it sits empty too long, you run the risk of squatters moving in and trashing it...