All Topics / Overseas Deals / US Property – good idea if America goes broke?

Viewing 20 posts - 21 through 40 (of 42 total)
  • Profile photo of FreckleFreckle
    Blocked
    @freckle
    Join Date: 2012
    Post Count: 1,680
    JacM wrote:
    Freckle !  Do you have a crush on the lovely DWolfe ?  wink

    Shusss! You'll give her ideas. Mrs Freckle reads this she'll smack my ears so hard they'll ring for a week.

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539
    Freckle wrote:
    JacM wrote:
    Freckle !  Do you have a crush on the lovely DWolfe ?  wink

    Shusss! You'll give her ideas. Mrs Freckle reads this she'll smack my ears so hard they'll ring for a week.

    Hahhha ok.  I can just imagine your blushing freckled face from here!

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of jmsracheljmsrachel
    Participant
    @jmsrachel
    Join Date: 2012
    Post Count: 711
    DWolfe wrote:
    Funny.

    Oh and didn't Antonio get kicked off the other night for advertising and making offensive comments? Oh that's right he did.

    Considering how much spruiking is going on on this site at the moment it's not the blind leading the blind it's the spruikers leading the blind.

    Try to keep the advertising in your signatures guys and post to help, not to build your brand.

    Cheers

    Towards the end Antonio was more interested in shaming everyone. Missing him already!

    Profile photo of jmsracheljmsrachel
    Participant
    @jmsrachel
    Join Date: 2012
    Post Count: 711

    I always had a feeling Freckle and Dwolf  have a thing for each other. They always get so hot and heavy with there arguments

    Profile photo of FreckleFreckle
    Blocked
    @freckle
    Join Date: 2012
    Post Count: 1,680
    jmsrachel wrote:
    They always get so hot and heavy with there arguments

    Na that's just flirting. The mods are so anal here we have to go hot'nheavy offsite.

    Profile photo of joshua40joshua40
    Member
    @joshua40
    Join Date: 2013
    Post Count: 8

    The property market has definitely stabilized. I am here in the US. I have seen the prices drop by 40% from the top of the bubble in '07.

    There is still some excess inventory that is laying around, but this has been due to a couple of factors.

    1. The banks have been slow to lend in the current environment. They are sitting on their cash.
    2. There have been both institutional and governmental policies delaying the foreclosure process.

    The sad fact is that in the regulatory environment before the RE market crashed banking institutions were pushed to make these types of loans to unqualified buyers. These people should never have had loans in the first place. All this bloat needs to be cleared of the table. That being said, prices have stabilized and excess inventory is being cleared away. The US is a large diverse market with different regions and economic circumstances. Some areas are rebounding faster than others.

    This is where the great opportunity lies, in getting into markets slightly ahead of the curve. When people lose their homes to foreclosure, they become renters. Rental income property is always going to be a tremendous opportunity.

    Profile photo of ModeratorModerator
    Moderator
    @moderator
    Join Date: 2010
    Post Count: 39

    Whilst there is undoubtedly interest in some of the by play it's probably time for the thread to get back on topic.  Thanks all.

    – Moderator

    Profile photo of priscillac22priscillac22
    Member
    @priscillac22
    Join Date: 2004
    Post Count: 5

    I agree I havent thought of that that way. Im looking to buy a cheap us house

    Profile photo of Big JohnBig John
    Participant
    @big-john
    Join Date: 2013
    Post Count: 13

    I've thought about this deeply. I'm an economist (completing my PhD) and have struggled to find a reason not to invest in the US. I've now bought 5 properties.

    To date, I can see a few benefits:

    1. Significant positive cash flow in a lot of areas

    2. Turnkey, tenanted properties no more than 50% of their price at peak

    3. Economic fundamental is place that indicate the US economic recovery has commenced

    4. Historic high AUD against USD, which has the potential to reverse over the medium term. If it reverses to historical trend then their is potential to make 20-25% in exchange profit.

    5. Credit now available to leverage. There is a possibility of refinancing as credit becomes more available to increase profit margins.

    Now the down side. Let's look at what happened in the GFC. That's our best indicator of what would happen if the "US went broke".

    1. Property prices dramatically reduced. This could erode the value of your property portfolio. The glass half full view is that if you have available capital you can buy more cash flow positive properties at lower prices and higher returns. If you're able to keep repaying your loans, then you can still make good cash flow. My opinion is that the down turn has bottomed out and the recovery is underway in some markets.

    2. Banks stopped lending. This led to very high rental demand. A good thing if you're a land lord.

    3. When people couldn't afford to rent, the govt paid the bill under Section 8 agreements. This put a floor under yields.

    What is likely to happen as lending is more available.

    1. Prices of homes will increase as more people buy more property.

    2. Rental demand will decrease, as more people choose to buy rather than rent. Rents would decrease and so too yields, in this scenario.

    Remember that there is the strategy or refinancing at lower interest costs to prop up margins in the short term when this occurs.

    However, when the recovery happens, there will be a point where it will make sense to cash in to realise your profits and invest somewhere else. Doing your five formulas regularly that steve outlines in his books will tell you when it's time to look elsewhere.

     

    Hope this is useful.

    Big John 

    Profile photo of FreckleFreckle
    Blocked
    @freckle
    Join Date: 2012
    Post Count: 1,680
    Big John wrote:

    3. Economic fundamental is place that indicate the US economic recovery has commenced

    And what would they be then??

    Profile photo of Alistair PerryAlistair Perry
    Participant
    @aperry
    Join Date: 2004
    Post Count: 891

    Hi BJ,

    Given your credentials I'd be interested to hear your thoughts on the exchange rate. I don't have a strong opinion as to whether it is a good time to invest in the US or not, but i am pretty sure the long term outlook for the USD is pretty grim. I certainly think that is overly simplistic to think their will be a swing back in the exchange rate just because the AUD is near historical highs, you must have some reasons for thinking there will be a correction other than this.

    Regards

    Profile photo of kylermricekylermrice
    Participant
    @kylermrice
    Join Date: 2011
    Post Count: 314

    We aren't going broke….. 

    Profile photo of kylermricekylermrice
    Participant
    @kylermrice
    Join Date: 2011
    Post Count: 314

    And what would they be then??

    The Freckle

    Well properties aren't as cheap as they where in 07-08.  Used to buy brand new in Florida for 35,000 back in the day, now your lucky if you can get something close to that for 100,000. 

    Profile photo of Alistair PerryAlistair Perry
    Participant
    @aperry
    Join Date: 2004
    Post Count: 891

    This is true, but only because your Government can issue currency to itself and its debt is largely denominated in that currency. US Gov debt is increasing in a virtual 0% interest rate environment, how is it ever going to pay this debt back, particularly when rates o back up? The simple answer is that it won't, it will either openly default or more likely it will continue to devalue the $US so that the real value of that debt goes down, this is default by stealth.  

    The devaluing of the $US is what is really an issue for Aussie investors over there, take as an example the US stock market which has recovered in $US terms, but in terms of A$ it is way down as at its previous peak the $US was worth a lot more than it is now.

    Profile photo of FreckleFreckle
    Blocked
    @freckle
    Join Date: 2012
    Post Count: 1,680
    kylermrice wrote:
    We aren't going broke….. 

    The US prints money to pay the interest on the money it printed into existence since 2008.

    Dude you're broke. You just haven't accepted it yet.

     

    Profile photo of FreckleFreckle
    Blocked
    @freckle
    Join Date: 2012
    Post Count: 1,680
    kylermrice wrote:

    Well properties aren't as cheap as they where in 07-08.  Used to buy brand new in Florida for 35,000 back in the day, now your lucky if you can get something close to that for 100,000. 

    That's not an economic fundamental as far as I'm aware. Big Johns statement was "Economic fundamental is (are in) place that indicate the US economic recovery has commenced"

    I'd luv to know what these fundamentals are.

    Profile photo of NathopolyNathopoly
    Member
    @nathopoly
    Join Date: 2010
    Post Count: 16
    Freckle wrote:

    The US prints money to pay the interest on the money it printed into existence since 2008.

    Dude you're broke. You just haven't accepted it yet.

     

    More like since 1971………or 1913 really. 

    I guess the question is, can you get your principal back before the USD goes completely poopooed? 

    Profile photo of dchartdchart
    Member
    @dchart
    Join Date: 2010
    Post Count: 2

    Sorry off topic, how do I start a question of my own??? I haven't logged on in a while and have a question but cannot for the life of me find where to start one!!

    Sorry!! And Thank you!

    Profile photo of FreckleFreckle
    Blocked
    @freckle
    Join Date: 2012
    Post Count: 1,680
    dchart wrote:
    Sorry off topic, how do I start a question of my own??? I haven't logged on in a while and have a question but cannot for the life of me find where to start one!!

    Sorry!! And Thank you!

    Go to the appropriate forum page. This will list all the current threads. At the top of the page is a button "Post New Topic Forum" voila!!

    Profile photo of kylermricekylermrice
    Participant
    @kylermrice
    Join Date: 2011
    Post Count: 314

    Just post it here.  Last time that happened Freckle blasted a lady, trolled on her hard :)  Wonder if i could still find that?

Viewing 20 posts - 21 through 40 (of 42 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.