Real Estate in USA

[oregon woodsmoke]

I've been looking at foreign countries, and it is an inescapable conclusion: real estate in the USA is very cheap, and cheaper still because of the exchange rate and weak dollar.

You have to compare apples to apples, and if you check prices in stable countries that are pleasant to live in, where your ownership of the property is secure, and you have a low chance of waking up one morning with a car bomb in your living room, the USA has very attractive prices.

 

[wesrae]

Where in USA

I've been looking at foreign countries, and it is an inescapable conclusion: real estate in the USA is very cheap, and cheaper still because of the exchange rate and weak dollar.

You have to compare apples to apples, and if you check prices in stable countries that are pleasant to live in, where your ownership of the property is secure, and you have a low chance of waking up one morning with a car bomb in your living room, the USA has very attractive prices.

I don't think anyone would argue about the relatively low cost of housing in US. I am looking to make an investment purchase over there towards the end of this year, however it can be quite tough for an outsider. For starters Where? The US is so big with varying prices, rental yields etc etc.

I will go to The States for a couple of weeks to make a purchase, however I thinnk it would be quite easy to go there and come back confused.

What are peoples opinions for the best places to invest in US?

 

[oregon woodsmoke]

Well naturally, I like my own area for investing. I am going to try to post a link for the Multiple listing in my area. If the link comes through, it is pretty much self explanitory.
<snip>
Central Oregon is a recreation area with skiing and all sorts of outdoor activities. It's an area that is very attractive for active retirees.

At any rate, a look through the listings will give you an idea about what the house and condos are like and what the prices are.

I am not an agent and I don't have anything for sale. I can answer general questions about the area, but don't know any more about the properties than what is on the webpage (except I will know the town and some of the subdivisions).

I suspect that most towns and cities in the USA will have many real estate offices on-line, so prices are very easy to check. Many towns and cities have their own webpages to give information about thier area.

 

[deejay-55]

We have visited Orlando for our family holidays over several years, and the property market there is huge. There are villas with pools in rental developments near Disney for sale at attractive prices.

 

[Investy]

Funnily enough I've always had some kind of affinity with Oregon, N Cal and Washington state, even thought Ive never been anywhere near. I just think it sounds very appealing to me as a nature lover, indeed its the part of the US I most want to see.

The downside for me in terms of investment is the sheer size of the place, so I end up not knowing where to invest.
There is so much space that capital appreciation can be less assured.

It's also a long way off, and I prefer investments closer. I almost bought in the Bahamas (right on the Tropic Of Cancer beach) but there were a lot of Human sharks in that market and the tourist season was surprisingly short and the food just the worst ever ("do you want grits with that sir" - what the f0ck, funny bits of grit on everything - wierd, and everything out of a packet!).

The US, if you know where to buy has to be a good investment, as you say it's stable, prices have fallen (thats when the smart invest) and the low dollar. I'd be tempted in the area you suggest if I had spare dosh.

 

[Investy]

So what would you recommend say for $100,000?
I'd be looking for the best rent yield, and least (read zero) hassle ongoing.
I'd want it fully managed, no bills to arrive on my desk every few months, nothing to do, hands off.

 

[oregon woodsmoke]

The USA is indeed big.

Washington and Oregon are not all that far from Britain. You take a non-stop from London th Seattle, over the pole.

Where you would want to purchase in the USA would depend upon what type of property you are looking for: If you want vacation rentals, you look for areas with a very long tourist season.

If you want rentals for the locals, you look for areas where there are jobs that pay well.

Just generalizations: The west coast of the Untied States has the best weather and the most beautiful scenery. Real estate prices are higher, jobs are better paying and tend to be tech jobs. There is not much manufacturing.

Also, business with the far east is coming in through ports in the Pacific Northwwest, and that provids a lot of good jobs. The vloume of trade with China is gigantic.

The north central part of the United States (the Plains states) has cheaper prices, and much less (and sometimes no) appreciation. There are often issues with job shortages, and some of the large cities have shrinking populations. Weather is very hot in the summer and very cold in the winter. Manufacturuing jobs are being lost to overseas. This is an area where you can get cash flow with your rentals. Prices for real estate tend to be very low.

The South west -- which surprisingly doesn't include California-- tend to be stable in prices. Jobs have not depended upon manufacturing, so employment has not suffered. Prices are mixed. The Southwest states are areas where people are retiring: Arizona, New mexico, Texas. Weather is dry with lots of sunshine. This is cowboy country, where incomes have switched from cattle to tourism and lifestyle.

The Northeast, and New England: states tend to be very pro-tenant and have high taxes for a lot of social programs. The further north you go, the more beautiful the area will be. The very northern states are tourist destinations with a short tourist season.

The southern states (which actually means the states in the south east and not all states on the south end of the country)- weather is warm and humid. They are all getting a lot of retirees moving in. Florida is the most popular and the most expensive. Some of the other southern states have real estate that is quite cheap. Good paying jobs are scarse. They are traditionally agricultural states.

If you are looking for tourist areas, to do short lets, there are many areas of the United states that have a huge tourist industry. Be aware that Americans are more inclined to get a motel room and then use their cars to go out and tour all the local sites of interest. There are not so many tourist enclaves with all included inside the walls, since that doesn't fit the American method of vacationing.

 

[oregon woodsmoke]

Investy, if you have $100,000 cash, that is enough down payment to get a place that will pay it's bills in my area. If you don't have down payment money and want to borrow $100,000 to buy a place, I don't think you can get a place that will pay all it's own expenses.

With no or low down in my town, I would be happy to get a place that pays for it's mortgage and maybe taxes. It won't cover vacancies, management fees, and repairs.

There are places in the Unites Sates where you can get all expenses paid on no money down property, but not in my area.

I don't know much about vacation rentals in my area. I know rents are very high, and the tourist season is virtually all year long, with emphasis on winter and summer. However, management fees are high, there are cleaning fees between each tenant, and certainly no vacation let is occupied all the time.

This is a very good time to go in and make very low offers and have a hope of getting accepted. Interest rates are low right now. But I am also hearing of multiple offers on property that is bargained priced. There is plenty of money, waiting to buy in my area. Buyers are just waiting and hoping to be able to pick up a bargain.

I'm in a highly desirable area. In some of the other areas of the USA, there are no buyers waiting to see what happens. In areas where there are no jobs, people are just walking away and aren't interested in buying. That means that you, as an overseas investor have to be a bit careful about picking an area just because the prices are cheap. You might get something for a very low price and then never be able to sell it again, nor rent it to anyone but a welfare recipient.

 

[deejay-55]

So what would you recommend say for $100,000?
I'd be looking for the best rent yield, and least (read zero) hassle ongoing.
I'd want it fully managed, no bills to arrive on my desk every few months, nothing to do, hands off.

For fully managed, etc, there are a couple of condohotels in Orlando that get good reviews on TripAdisor, where you can get resales at less than $300,000 while new units are selling around $400,000.
For $100,000 you probably need to look elsewhere.

 

[Jasiu]

I went on a recent trip to Indianapolis and decided to look at property whilst there.

It seems you can quite easily pick up a multi-unit property (normally 2 units),in reasonable shape, close to down town, with existing tenents for between $30-40K and with a rental value of between $900-1200 pcm.

This seems like quite a good deal - anyone else have any thoughts...?

 

[JJohnson]

Yes, there are a lot of good deals in Indianapolis...one of the hottest market according to a report by the Wall St Journal. You can get properties that cash flow for less than 30-40k as well. I invest in Indy and find that compared to other cities it's an affordable market with certain areas of the city remaining stable.

 

[mardyey]

I went to look in Detroit-low prices,high yields. I am following up. A number of companies are offering hassle free deals-you may get a better deal going over & finding your own-but hassle involved. Any one have experience?

 

[BibiDimi]

I agree that property within USA is quite cheep these days, maybe the crises has lowered the prices and some estates are very cheep. Even new homes in Bothell come at a very low pricing. I don't think it will go this way forever but this is definetly the time to buy.

 

[ask4roberta]

Hello, I am a new member from Orlando. Florida is a very popular place for international investors and a very popular place to live, vacation and retire. Since we consistently have ranked as the number 1, 2 or 3 top states in the country for foreclosures, so there is a lot of distressed properties here and it is very easy to pick up properties for less than !00k and even less than 50k.

In fact, according to the U.S. National Associatioon of Realtors, 54 % of all foreign purchases in the U.S. between 2009-2010 were located in 4 states : Arizona, California, Texas and Florida, with Florida leading the way. Also Florida and Arizona exhibited the biggest increases in purchases since 2007, with Florida again being in the #1 spot.

 

[FloridaForeignInvestors]

There are several areas that are doing well. What is interesting is those areas that have been hit hardest with the real estate bubble, tend to be the best places for investing. Much as other cycles of wealth, real estate has its own cycles. Right now there is quite a bit of good bit of good real estate in the US.

 

[newportca]

can anyone share about newport beach. im interest buy home in newport beach, california

 

[moellerryan]

Newport beach is beautiful, really expensive. I mean really expensive! I used to live in Redondo Beach and Huntington Beach before moving to San Diego. The beach areas of southern CA are outrageously expensive but quite amazing.

 

[ask4roberta]

California is an incredibly beautiful and incredibly expensive state to live in. It's hard, if not impossible for most people to just move there from another part of the country (or world, probably) and buy a house in a nice area. New York is the same way. Unless you started out owning something many years ago and just kept accumulating equity and moving up, you're probably can't afford to buy a nice house there. Even then, considering the state of the CA economy, you might reconsider.

 

[moellerryan]

I agree, CA is beautiful but cost prohibitive for most especially if you live in the nicer areas and beach areas. Sometimes homes cost 4-10X what it costs in nicer areas of other cities. I know this because I lived in LA and San Diego for 8 years almost and I'm from OH where home affordability is very cheap. In OH, if the affordability index or % of population that can afford the average home goes below 50% then the market is overvalued. In San Diego the affordability index got to around 6-7%. That means 6-7% of the population can afford the average home. Go to the nicer areas and beach areas and the homes quickly get 3-10+ times the cost of the average home. Crazy!!

 

[ask4roberta]

That's the truth! It's a shame because it is one of our most gorgeous states, or some say it IS THE most gorgeous state. It just doesn't make much sense to buy there, unless you're a movie star or can afford to be very extravagant. Best to take a vacation there, if you want to experience it, and buy somewhere else.