Hi, I am British, looking to make investments into maybe 3 houses in the US at prices of say between $150-220,000, with the aim of capital gain over next 5 years or so. The US economy seems the best bet at the moment. I may be a little late, seen that most markets are already on the upturn, but I would appreciate opinions on regions to consider. The idea is a house or condo in good condition so that I do not have to go to trouble of maintenance from abroad.
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If u r buying banking on growth then almost any market is going to be a crap shoot.
You are too late for Phoenix and Atlanta but at your higher price point my pick would be San Fran. Solid rents, lots of newer homes and good growth prospects.
For some general advice at that price point avoid smaller markets and any area without a good mix of Pink, white and blue collar industry. We have a lot more pain to go yet I believe so you want to be in a diversified job market larger city.
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You are too late for Phoenix and Atlanta
or have i misunderstood you?New Zealand's #1 Marketplace for Property Investors & Sellers!
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Orkibi the hedge funds have pushed values to over leveraged levels so people think they are buying well but are in fact paying too much and risk further devaluation when the funds leave. People are buying low yield in a cash flow city banking on further appreciation. I know a number of good wholesalers who have pulled out of the market completely due to inflated values.
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Thanks MTP,
So whats the news about Memphis?
i know of investors still achieving 15% gross or 9%-10% net in eastern suburbs.New Zealand's #1 Marketplace for Property Investors & Sellers!
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We get minimum 10% net. Gross varies a lot depending on whether there are city taxes or unincorporated. We are getting better deals now than ever, but we do have to look harder for them these days! There is not much competition in the high b's and low A's so a lot of our business is in that strata now.
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Which suburbs are high Bs or low As and what vacancy rates would you work on?New Zealand's #1 Marketplace for Property Investors & Sellers!
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Not sure what you know of our market, we work on zip codes but even in each zip there are good and bad parts. Parts of 38115, 38118, 38119, 38120, 38125, 38133, 38134, 38135 are all good. Vacancy long term should be under 10%. In good areas you may even get down to 5%. HOWEVER it can take months sometimes to get the right tenant into a property so you have to be prepared for that. But over time 5 to 10% is about right in decent areas.
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We still came across some great buys in Atlanta. We are personally closing on 2 more properties in Atlanta next week with 10% net yield and our client is also closing on property with the same yield. Of course, it's definitely getting harder to find great value but it's fair to say that is happening across the board as the U.S. housing market is in its recovery. IMHO I don't think the large funds like the BlackStone group is going to cause a problem when they exit. It is only natural for investors (institutional or individual) to rush in and pick up properties when yield is so high and the price is so much undervalued. I can draw a similar conclusion on how some people in NZ like to blame the property investors for pushing up home prices. Anyway, investors' activities will be much less now that market is picking up. The next phase of the recovery will have to be relied on the home owners who pay at retail prices.
Good thing that home affordability is still high in Atlanta (http://www.11alive.com/video/default...AGE%7Cfeatured). It also helps that it is in the top 4 of cities in America with highest wage rises (http://money.cnn.com/gallery/pf/2013...ies-pay/4.html). These two facts alone give me a lot of confidence to hold on to my Atlanta properties over the long term. We bought well in Memphis and Atlanta but as prices continue to rise we are already start looking at other markets for next year.
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The California real estate market is truly established to rebound. You do see a lot of people leaving some cities like Culver , Brentwood , Venice , Santa Monica where the market may be over saturated. The ordinary deal price for a home in California can be for over seven hundred thousand. The real estate market has been supportive of people needing good employees that truly know the benefits of information technology. If you are looking for an investment in California then Santa Monica is the best and here you can get a good price on a house.
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Santa Monica is the best and here you can get a good price on a house.New Zealand's #1 Marketplace for Property Investors & Sellers!
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Originally posted by Orkibi View Postwhat sort of yields can you get there?
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