Paul
I forgot to ask. I can't find anywhere where you have indicated the purchase price however you indicate $96,000 covered a 10% deposit plus closing costs so I estimate that each duplex is around $310000. IS this correct? What is the expected rent or is the $73,000 towards subsidised rent?
TrishTrish/Karen
We were told to expect a timeframe of max 6 months from sending off our deposits and the property being ready to rent. The process is going slower than expected, but I am told this is largely because they have been overwhelmed by the number of overseas investors, particularly from the UK and Australia, but also the rest of Europe and the Middle East. They are looking to use an additional Title company to speed up the search processes for each plot.
To qualify for the full SRAP funding the properties must be completed and ready to rent within 6 months. I have found out since applying that the SRAP is split into two payments: an $18,000 completion bonus for completion within 6 months, and $55,000 forgivable loan which is for 5 years. Both are due on completion when the property is ready to rent and will be paid as 2 separate cheques.
The purchase price for a duplex was $244,900. Initial costs are therefore made up of a 10% deposit of $24,490 plus costs of $6,740, which I rounded up to $32,000 to be safe. Prices have increased since we committed to buy to $262,500 which means an extra $2,000 deposit, but the $6740 is still the same. So initial outlay per duplex would now be $32,990. The latest information I have seen on rents being acheived is $2,000 per month per duplex.
Since we agreed to buy our properties I have become more involved with Danny and Tony and have now become an agent to help them attract people to the seminars in the UK, but I’m not involved in the selling process. I appear to be getting a bit more inside info on questions that other investors are raising. If I can be of any further help I am happy to continue answering any questions you may have on my experiences as an investor.
Regards
Paul
Hi All
A lot of options available.
First of all you have to decide where you want to switch
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San Diego Condos | California Condos For SaleI would be interested to know how people are feeling about this program now. Paul seems to have gone off radar for the time being.
I have been looking at the Mississippi program for a while. Obviously the accelerated depreciation on these properties is very attractive (If you Qualify), and the forgivable SRAP loan is also very attractive.
Hard to know who to believe in the promo game, and the whole area is not one I would invest in, without the incentives.
That said, if you put down $30K on a solid house, and you get back $36.5K within a year, it is a pretty good deal. Add the accelerated depreciation, which could be worth another $20K, and it becomes a really sweet deal.
You do need to realize that the SRAP2 funding is not guaranteed, and the program ends in December 2008. Also, the $36.5K is in the form of a forgivable loan, and that money will be taxable income, when the loan is forgiven after 5 years.
Please let me know what you have experienced. Is it as good as it sounds ?
majiqalmjc
I would not trust the U.S government to pay you Jack, China is having there own economic problems, There own economic stimulus package.
Once people stop buying the U.S T Bills they are bankrupt.
You might as well invest in Zimbabwe
Sorry, But I think its crazy to invest in other countries, Especially US and A
HB,
I guess it is good that the OZ investors in NZ don't follow your thinking about not investing in foreign countries.
hi !!!!!!!!!!!!!!!!!!
Mexico real estate market is much more stable than US real estate market. The residential mortgage backed securities, popular in the US property market, are not common in Mexico, so have a much less effect of the sub prime crisis afflicting US economy.
Another factor is that the buying market who are looking for the second vacation home is not really experiencing too much of the current recessionary effects in America.
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Dominican Republic Condos
Dominican Republic Condos For Sale
Dominican Republic Real Estate
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++Regarding the Mississippi SRAP mess: guess Mr Graveling, spruiker extraordinaire, came a cropper.
First of all you can't apply for anything in that program if you don't have a USA Social Security number.
Second, you have to have a credit score of 580 (USA).
Third, the rents are capped by the HUD and MDALotsa fraud going on around this program.
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