[lawsjsParticipant@lawsjsJoin Date: 2002Post Count: 252]

April 9, 2012 - 5:00 pm

Jay, when the US collapses into social mayhem from a US$ debt crisis – can you put aside 25 acres for me please? I am happy to pay you for the benefit (maybe in filipino or thai maids if currency is worthless) because I think armageddon Jay style sounds pretty good:)

[lawsjsParticipant@lawsjsJoin Date: 2002Post Count: 252]

April 9, 2012 - 12:33 pm

I will look, thanks for the link but I doubt it. On the surface US banking systems are stupid, but they are technically not. In the case of logging onto Grandpoint it seems if they dont recognise the server as well as the PC’s own ID they treat the log in as suspicious. In otherwords things like peerguardian will self defeat – it has to recognise the numbers and ident to let you in, hiding anything is probably exactly what they are trying to stop. I’ll let you know though, thanks.

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April 7, 2012 - 9:06 pm

Jay, thanks forr taking the time – nice post.

You say 'whatever address was on the loan app'. Not true. Because foreign addresses do not fit in many US centric software 'boxes' you get the address in the system that the moron typing it in came up with – in my case frequently (and I mean frequently) an address that is absolutely guaranteed never to reach you. This is what got me off the hook credit wise – it involved Washington and took a year but I got it done. That type of error is inexcusable.

Even if the address actually is correct you then get USPS sending mail to Austria first.

Then you get switchboards that block long distance calls and -800 numbers that wont work outside the US. Ever tried to get in touch with a company WITHOUT using their listed 800 number?

I spent half a day applying for a 'trusted international traveller' INS pass to avoid the <moderator: delete language> queues at LAX (3 hours sometimes after a 15hour flight) I get to the end of the form and it turns out 'international' to the US Govt means Mexico and Canada only.

Sorry Jay but I have very skewed views of the idiocy built into the US because of this type of inexcusable backward nonsense. And it is inexcusable and almost impossible to explain to anyone in a 'normal' country because they simply cannot believe it is as bad as it is.

I am not anti US as such but I have long experience with it and parts of it are an international disgrace. It is embarrassing FOR the US. I dislike the nanny state that is Australia but at least if people are stuck with something stupid you will get someone who sees reason and fix it. The US is full of people that say 'how may I be of assistance' knowing full well they will never assist as long as they breathe.

I was stuck in an outgoing queue with a BA Captain in LA once. Some twit got upset about a mis interpreted instruction on a form (and the form was wrong, grammatically and instructionally) and all hell broke loose. Once these idiots realised the guy in uniform being paid to fly 400 passengers with 160,000kgs of jet fuel and full FBI clearance (unlike security) wasn't actually a major threat to the world the comment was perfect. 'Sir, what you patently fail to understand is that I am trying to leave this place as quickly and simply as possible – probably with 400 people who feel exactly the same way – unfortunately I have to be back next week, probably every few weeks after that for the next 15 yeras or so. After that, you have my word I will never of my own free will return'…

Enjoy the golf, try to avoid Tigers club:) !!

[lawsjsParticipant@lawsjsJoin Date: 2002Post Count: 252]

April 7, 2012 - 11:29 am

I didn’t know the numbers you were dealing with. The property press were bleating like Welsh lambs in Spring about the stamp duty increases. Evening Standard property (wed) edition were along the lines of “kill the recovery’ – ‘ruin our livlehood’ etc etc. Argument being that the larger stuff won’t trade therefore lower priced would rise and will meet the threshold – and inevitably it will, like in Aus it is an abhorrent tax. The Jersey and Channel Is issue (I thought) was more about companies owning UK RE, which I felt could affect Aus purchasers. I don’t own in the UK (would like to – sadly just too damn far away) but having seriously considered it once I keep an eye on it.

[lawsjsParticipant@lawsjsJoin Date: 2002Post Count: 252]

April 7, 2012 - 4:19 am

I have not had insurance on a property with CBA, WBC and STG. In fact I have just bought a property this week and didn’t realise I hadn’t organised insurance on it until a mower I bought needed to be noted on the policy. Story got funny then, I simply rang up the broker to get the mower noted on another property in the same street (quicker than a new policy) which I assumed had been paid and hadn’t.. ooops:) Much embarrassment, but proof positive the Aus banking system ‘yet’ requires policy. Second and third tier banks are more picky, but it is not a major issue with the guys I deal with.

Obviously it is far better to have insurance than not, but in the US it is a hanging offence!

[lawsjsParticipant@lawsjsJoin Date: 2002Post Count: 252]

April 6, 2012 - 11:16 pm

UK Stamp Duty was increased substantially in the most recent budget (couple of weeks ago). Not a killer, but be aware of it:)

http://www.homestagingconsultants.co.uk/Stamp_Duty_Rates.htm

[lawsjsParticipant@lawsjsJoin Date: 2002Post Count: 252]

April 6, 2012 - 11:59 am

Ahhh Kyler…
I could use an oldie but a goodie and say the US has never won a war they have not had help with…. Which of course puts you way above Australia who has never won a war:)

VF does the trick. It works and you deal on a people level. Most of my US deals are done with VF – pisses me off no end when you try to do a vanilla deal in Aus and it doesn’t happen because no one has the faintest idea what you are talking about! Telling agents they have no grasp of reality and I will simply take my money elsewhere is met with stunned silence. ‘But the vendors want you to buy’ – Too late – in the 24 hours you said ‘no’ I just bought a 4plex in SoCal…..

In Oz we live in a very protected (mostly) Democrat world. Its a bit like the LA arts community if you can imagine that for a whole (small) country. Almost every social problem you guys have I think we will have in 20-30 years time…

I hope its different but I suspect its not:)

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April 6, 2012 - 11:45 am

I didn’t mean ‘i’ above in ‘I expect’ I meant ‘we’ etc. Apologies. Having been through this type of thing I take it personally.

BTW property insurance on mortgaged freehold is not in any way required by Aus banks. Which is why it seems so strange to Aus resi’s. If it is compulsory, surely the bank would make some effort to ensure the owner had it..

The US banking and RE system is operating in the 1900’s. To expect differently is to take grave risks. You guys in the US just don’t even understand how much better it could be.

Jay – you grew up in Cupertino. Imagine for a second we have iPods in Australia. You (in the US) have 45’s. I can’t think of a better analogy…

[lawsjsParticipant@lawsjsJoin Date: 2002Post Count: 252]

April 6, 2012 - 4:44 am

Jay,
The thing that is so frustrating is that no one at all actually explains that – certainly not the bank, they usually don’t communicate anything – you are just expected to know. Simple things like an email, mail or a phone call and this would not happen. That type of thing is absolutely unheard of in Australia – why are you expected to ‘know’ and why can’t someone just pick up a phone, or an email. In my case World Savings posted my mortgage documents to Austria with an Australian Post Code. I mean Come on! There is a basic duty of care surely!

I think it is a perfect example for Australians to hear about. I hope I will be able to help get a reasonable result – though I understand your ‘walk away’ comment regarding the cash, it is just so crazily unnecessary! Especially when everyone just accepts that the system is so far from perfect it isn’t funny but no one does anything about it!!

[lawsjsParticipant@lawsjsJoin Date: 2002Post Count: 252]

April 6, 2012 - 4:35 am

Freckle:
Only something like 4% of homes at the worst point in the crisis in the US were in foreclosure. Jay is absolutely spot on with his points above.

Jay – you are correct, Australia basically has no foreclosures. Certainly no foreclosure market. Occasionally you will get a ‘Mortgagee in possession’ sale (REO) but it will be advertised specifically as such for more publicity. In 25 years of actively buying real estate I have never seen a Mortgagee in Possession sale go for anything under market – usually the reverse because of the publicity. We have a very controlled market, very safe and secure – which is why it is very difficult for Aussies to understand the whole risk/reward scenario.

Comparing the WHOLE Australian market to something like New York is probably not unreasonable. Extremely tightly controlled and (amazingly given the size) little development – certainly nothing like you see in the US. The boom/busts are very small, nothing like an S&L, tech wreck or sub prime has ever happened. That is why I think Aussies lean towards the risky stuff, because at home it always works out in the end.

[lawsjsParticipant@lawsjsJoin Date: 2002Post Count: 252]

April 5, 2012 - 8:51 pm

I just re-read your post. My foreclosure issue in 07 was due to World Savings as well. I have written about it before to explain to LIL that US investing can be nasty.

I got my credit cleaned but it involved a lot of work by the broker that got the loan. My total disdain for US systems and their idiocy was entrenched from that day. I cannot believe the country actually mostly works with the recognised incompetence that involved what I went through. To see World Savings again in a similar context (my issue was when World purchased my mortgage holder) must mean sytemic failure with anything they do. And they are not alone, I have stopped the same thing happen wih other banks I deal with – because I am now deeply suspicious of the competence of any US financial institution.

[lawsjsParticipant@lawsjsJoin Date: 2002Post Count: 252]

April 5, 2012 - 12:07 pm

Cheeves,
Great idea. Don’t count on web guys for support, but keep asking. I did this USRE stuff on my own some 15 years ago and it was HARD. The scammers that appeared post subprime I think have (with luck) all but run their race – the only reason I am posting is to hopefully stop the rip off guys that are left getting another victim.

If you are even thinking of USRE then a ‘webinar’ is probably the best way to start. No one who doesn’t know what they are talking about would even think of being a part of it. They would be ripped apart by the good guys if they did.

I got into the USRE market on 8% cap. It is about what I have got ever since. I have killed the returns I have got in Aus, and I never bought a foreclosure. I would hope that people reading this would see the sense in long term buying ‘quality’ US RE from ‘Quality’ facilitators. And if a webinar gets up and goes you will find them on it.

Give it a chance – you have nothing to lose. The US RE market will outlive low USD exchange rates and sub prime crises. Back a long term horse and you will win. I am proof – Ive bought badly and bought well, Nothing spectacular, but overall it works.

[lawsjsParticipant@lawsjsJoin Date: 2002Post Count: 252]

April 5, 2012 - 11:02 am

Here Here Tx Cash Cow….

Great article.

US guys – in Aus and the rest of the ‘English’ speaking world (and I use the term from BBC America ‘we speak English:)’ ) this not a ‘lets get the US’ thread, it is about how incredibly frustrating it is to deal with a country that put man on the moon, invented the internet and yet seems only able to use the net to download porn.

You don’t need to use naked girls pictures to send money, you can do it with bank account numbers!

[lawsjsParticipant@lawsjsJoin Date: 2002Post Count: 252]

April 5, 2012 - 10:19 am

BTW:
60% of my US mail takes 6-8 weeks to get to Australia – MINIMUM.

It took me 10 years to work out why.

One day a letter arrived and it was clearly stamped ‘HAMBURG MAIL EXCHANGE’.

Finally it dawned on me that you have to assume that ALL mail from the US to Australia gets sent to Austria first. To do anything else will (as it did to me and as above) put you in foreclosure.

FYI guys in the US. The rest of the world’s postal systems work without UPS/FedEx etc because we have (so far) THINKING people who do not believe you get eaten by serpents and dragons if you step outside the lower 48….

AND….
NSW-CA mail – 4 days to deliver.
Ca – NSW mail – 56 days to deliver.

Count on anything less and you WILL get caught….

[lawsjsParticipant@lawsjsJoin Date: 2002Post Count: 252]

April 5, 2012 - 10:12 am

I will add – I nearly got foreclosed on for exactly the same stupid reasons:) It is not pretty….

Don’t think I am a White Knight, but I finally have what some people might call powerful friends that may help. Its worth the ask… I DO know what you feel because I HAVE been there… The US worker does not think or care when you are in the position you are in. Unlike almost the entire world they seem to only think of themselves and what they have to do to get through the day. Solving your problems would not even enter their heads….

US Guys might think I am being hard but it is a harsh wake up call to anyone who hasn’t been schooled in US Capitalism.

[lawsjsParticipant@lawsjsJoin Date: 2002Post Count: 252]

April 5, 2012 - 9:58 am

Mark,
contact me immediately. I will send you a PM

[lawsjsParticipant@lawsjsJoin Date: 2002Post Count: 252]

April 5, 2012 - 9:57 am

Four letters E.U.R.O.

I like NZ a lot. However, won’t happen…

NZ is tackling the finance crisis sensibly. Pro Business CEO/PM – Like the work they are doing – a LOT. Australia is stuck in the leftist 1950’s protectionist mindset that will kill us. Why would NZ want to invite themselves into the mire that is incompetent Aus policy making.

[lawsjsParticipant@lawsjsJoin Date: 2002Post Count: 252]

April 4, 2012 - 7:23 am

Citi were worse than useless for me. BofA are my ‘main’ bank, but mindless fools when you you actually need some banking assistance. Wells set me up an account and were helpful, but it became too hard for me to ‘reset’ all my loan payments – I closed the account. I now have a private bank who I am slowly making the change to, but they also have their own set of problems – like won’t let me sign in on computer (or a country!) that their system doesn’t recognise!! Same laptop, different country – sign in (in my very best Thai) CANNOT!

My advice (and I think even though you probably won’t understand why and might think I am being silly) is to set up an account with someone at a bank you yourself walk into and meet someone you feel comfortable with. You need _someone_ who knows _you_ personally.To do anything else will create ‘problems’ when you need something slightly outside the box – and when dealing with the US banking system I can promise you that almost anything you expect will (or should) happen almost certainly won’t. There are now US banks who deal with aliens quite well, but please find a person you like – the bank itself is less concerning, the people in it make the difference. In general US banking is like entering a 1960’s time warp:)

Post 9/11 do not even THINK about setting up an account without being there and having your passport.

[lawsjsParticipant@lawsjsJoin Date: 2002Post Count: 252]

April 4, 2012 - 2:29 am

Almost any bank will loan 30% down to a Non-resi Alien at reasonable rates on a (one) vacation home. Even at the height of subprime these loans were available.

[lawsjsParticipant@lawsjsJoin Date: 2002Post Count: 252]

April 3, 2012 - 8:33 am

I am not having a go at you, but it is all about the luxury of space.

No one in MEL wanted to live near an airport. So Tullamarine was built. In the middle of nowhere. Now it is surrounded by houses – because it was ‘relatively’ cheap property compared to what was nearby when they were buying. Nowadays Tullamarine on Gearth looks like an extension of MEL itself. The same thing that happened to MEL 50 years ago is happening at AVL.

Upmarket areas of LA where I buy (and the more you learn about US RE the more you like upmarket) include sewage farms, airports, earthquake areas, beside the 405, moving cliff faces, beachside tidal zones etc etc – just as long as it is away from the hard hitting’ pipe swingin’ – Im sure you know the rest of the movie quote:)

However – I do agree, in a really good buying market, why take a risk? Just remember the market you are buying in – it is very different to ours in Australia.