Invest in NZ - not in US properties is my mantra

[damage]

Those people investing sensibly in the US market will be laughing all the way to the bank when the recovery and boom part of the cycle returns.

The same here in NZ but look at the US numbers... the house we are using as an example is on the market for $25k, what are the yield numbers if it was bought for $20k?

Of coarse you have to do your due diligence. Does the house come attached with a higher subprime mortgage? are there tax liens attached to the property? Is it rentable? Is it in a flood zone?...

Dave, you have to ask the question. Why is it selling for $25k in the first place? Why is the price so low?

[speights boy]

I have spent my own money researching, and working out how this can work for me. And for the record I have purchased some US property personally to find out. I have not "Sold" to anyone else

Q - Is this a viable strategy?

If you have bought well , and used correct procedures then of course it is.
Buy as many as you can, good luck to you.

However, your INTENTION is to become a middleman between NZ investors and US properties is it not?

[PeterTach]

So let me get this right....

Investing in the US is bad completely and totally without limit or it's OK depending on who you buy from?

[speights boy]

Depends on whether you are buying or selling .

Your USA Markets page needs a re-write; poor English composition, spelling and parts of it make no sense.. ( Indian staffing?)

Yes Peter, as I said back on post # 78, it does make a difference.

I can't find Kerry's USA Markets page on his website anymore, which is a shame as it was "unusual".
He still advertises upcoming workshops on US property however.

Kerry can buy land on the moon for his own use if he so wishes; but as soon as he wants to be a ticket clipper in a line of ticket clippers involved in selling it, then the equation changes.

His last post was indicating a personal involvement only.
I am not sure we had full disclosure from him.
Hence my question.

[Shane D]

So let me get this right....

Investing in the US is bad completely and totally without limit or it's OK depending on who you buy from?

Peter,

I think you are asking the wrong question. I think the key to buying in the USA or anywhere for that matter is the 3 old golden rules of real estate.........location, location, and location.

Following the following rules you are going to be wellon your way no matter whom you purchase from

research and buy in cities/neighborhoods that have
- cashflow positive properties available
- growing population
- good employment prospects (lots of big companies operating or moving into the area)
- good school district
- good transport links (convenient/no long commutes to shopping/schools/employment)
- good weather (no extremes like desert or frigid cold snowing winters)
- no massive oversupply of housing

If you can tick all the above boxes then you are more than likely on to a property investment winner.

Shane

[damage]

Shane, ticking all those boxes is property investment utopia and I seriously doubt you'll get all those.
The Market for the above is too effiecent to enable you to do this on a regular basis and you'll also need to be very lucky

[Shane D]

Shane, ticking all those boxes is property investment utopia and I seriously doubt you'll get all those.
The Market for the above is too effiecent to enable you to do this on a regular basis and you'll also need to be very lucky

damage

Your reply tells me you have done ZERO personal research on the USA. I mean... drilled down and found cities that may fit the criteria I outlined above.

Do a search of San Antonio Texas for a start. Its got a lot going for it.

- 3rd fastest growing city in the USA (population growth).
- adding lots of jobs with 5 Fortune 500 HQed there plus one of the largest military presense in the USA
- Unemployment @ 7.3% (top 10 best in the USA for city over 1 million people) which is WAY below the USA average of 9.1%. Also Texas has added 70% of all jobs created in the USA since the recession started.
- Demograpics are split between white and hispanic with blacks around 6%..
- weather is nice. Coolest it gets is 4 degrees and the hottest 34 degrees. The averge is somewhere in between.

Obviously one would need to drill down further to find good school zones close to large employers and the military to optimise the prospects for a great rental property.

Shane.

[damage]

Shane, if you think that S.A has a lot going for it, then you've already missed the boat.
I wish you well in your endevours but I wouldn't touch the US with a barge pole.

[speights boy]

Damage.

Are you saying that someone who does intensive personal DD on a city in the US and then decides it is a good investment is always going to be too late?
What about all the local property investors in S.A , why are they investing if the boat has sailed?

It appears to me the Shane's approach is slow, sound and smart.
Unlike someone who reads a website and says "oh..what a great deal"

Whether Shane decides to invest or not, I have no doubt that decision will be made with a lot more knowledge than most of us here.

[fatfishandchipman]

Speights boy, I beg to differ. Shane D is simply regurgitating a vanilla, good-practice, real-estate purchase, itinerary. None of it a real business plan. And by business plan I mean:

· Shipping money to the USA.

· Getting a bank account.

· Getting a mortgage.

· Purchasing property in your own name (or an LLC).

· Short Term expenses – these broken down into the standard categories.

· Long Term Expenses – these broken down into the standard categories.

· Shipping more money to the USA: servicing debt and all expenses.

· Profit? When and how much?

· What resources do you have in the USA.

· Do you have a back-up plan when there is a hiccup?

· And that’s just to begin with….

[damage]

Damage.

Are you saying that someone who does intensive personal DD on a city in the US and then decides it is a good investment is always going to be too late?
What about all the local property investors in S.A , why are they investing if the boat has sailed?

It appears to me the Shane's approach is slow, sound and smart.
Unlike someone who reads a website and says "oh..what a great deal"

Whether Shane decides to invest or not, I have no doubt that decision will be made with a lot more knowledge than most of us here.

Hats off to Shane for making the effort, but I dont think reseaching a few numbers about the local region classifies as DD.
S.A might have these great things going for it, but what makes it a good place to invest? No doubt if the place was so good, prices and demand would already take that into account. The market is alot more efficent than you think.

[speights boy]

No doubt if the place was so good, prices and demand would already take that into account. The market is alot more efficent than you think.

...." but I dont think reseaching a few numbers about the local region classifies as DD."

What part of ' intensive personal ' did you not understand?


Many previous owners are now facing a decade or more of having to be renters.
Also many rent as they realise they have to be flexible due to limited job opportunities.

There are areas where rental demand is high, but prices remain depressed as there are fewer owner occupiers in the market.

[speights boy]

Chippie

All good points.

I would also expect that Shane would have a full business plan before investing.
Smart investing will take a considerable amount of investigation that is for sure.

[damage]

...." but I dont think reseaching a few numbers about the local region classifies as DD."

What part of ' intensive personal ' did you not understand?


Many previous owners are now facing a decade or more of having to be renters.
Also many rent as they realise they have to be flexible due to limited job opportunities.

There are areas where rental demand is high, but prices remain depressed as there are fewer owner occupiers in the market.

why are there fewer owner occupiers in the market?

[speights boy]

Some prefer to be able to move without the need to sell a house.