US Property ( including struggle streets) are booming

A few years prior, these kinds of properties would barely cross 50-60k..now selling for 250-300k and all cash!!!
This kind of boom makes sydney look tame.

12911 Cook St, Los Angeles, CA 90061 | MLS #SB17081674 | Zillow

and
this one...so bad that its probably dangerous going anywhere near it. The agent mentions only drive bys..( for viewing as mentioned in ad, but i wouldnt be surprised if there was another drive by of a different sort in this street...)
1426 W School St, Compton, CA 90220 | MLS #17234710 | Zillow

 

I know boom markets everywhere in USA.

We have worked out we have been buying 1 property in USA every 3 weeKs over the last 12 months

Drive by, means its tenanted, pretty common term in USA re industry

I did mention some time ago there were 30 offers on 1 property and yes Sydney is tame in comparison. At least there are 50 States

Rents also soaring

Detroit now one of the hottest markets would you believe



MTR

 

That's like almost 20 properties in a year! How did you fund your shopping spree? The banks were quite up-tied on borrowing to foreigners the last time we tried back in 2012-2013. We couldn't get any normal banks to borrow. Have they loosen their borrowing requirements lately?

 

We are using cash.
Finance for foreigners available at higher rate, may consider this down the track for some projects. For investors in Oz, one way would be to access equity.

 

yes US markets are doing pretty well the past few yearsl, im actually looking at buying by year end in flushing, NY (investment / possible future living).

cant go wrong with the demographic there too

 

you cannot go via normal banks as a foreigner with no credit record in the US, there are alternative avenues which will require higher cash deposit (lower LVR) and also slightly higher rates

 

When you say higher rates, how much higher would the rate be for overseas investors?
Just had a quick look online and the home loan rates are around 3.7% for a 30 years fixed and 2.8% for variable. Not bad considering the rental yields are so much higher, over 10%. Almost too good to be true, am I missing something here?

 

I actually think USA is in an early bubble, perhaps very early, which means it's probably a great time to buy. My bet is the market really starts to take off in the next 5 years or so, as the mania hits. China is shifting to USA and UK for overseas purchases, the US economy is doing pretty well despite Trump. Some cities like LA and San Fransisco are looking high, but they can go a lot higher (and have done in the past). I think USA is at the point Australia was at in about 2011/2012.

 

As a foreigner will be looking at closer to 8%+ interest rates.

These are equity releases, no financials required, with property increases as much as 500% since 2011 its easy just to access equity and keep buying as markets continue to rise.

MTR

 

One of the reasons why the market is booming is because economy is on the rise and not enough stock.

Buyers around the world are in, started in 2011. The investors who made their money in 2011 are now accessing equity and continuing to buy. Cash flow wont be where it was in 2011 due to property rises, but still stronger than Australia as momentum continues. I don't really know what will stop this boom, but I don't see it happening anytime soon.

My advice for anyone interested in investing in USA, focus on a market with strong fundamentals, ie companies that are moving to the State, population moving to the State, jobs etc.
In saying this I think you probably will make money in most States in US.

I have learnt a hell of lot since investing in 2011, its been great experience

 

You bet.
I purchased this one in October 2011 for $48,000 as per Zillow records attached. Now valued at around $162,000 US$
5778 Belmont Ridge Cir, Lithonia, GA 30038 | Zillow

That is capital growth of 350% in 6 years and still growing and that does not include the currency play of around 25% on top of this.

 

Been living on and off in USA now for over one year.

Its a sellers market at the moment. Its difficult to comprehend that the US market crashed in 2007, from what is happening now

Real estate CEO: Record-low housing inventory is 'freaking us out'

 

If Detroit is one of the hottest markets, then I would say the property bubble in US is probably near its peak.

Last I heard their economy was shot and they went bankrupt in 2013..

Detroit bankruptcy - Wikipedia


Detroit is 'booming' again. You have to be rich and powerful to notice, though | Bankole Thompson


Must be all dem speculators jumping in. I read about commies snapping up the bargains there a couple years back.

 

LOL, heard it all before. Thankfully I paid little attention to this, I actually flew over to US and worked it out myself and the rest is history as they say.



MTR:

 

last time i checked it was around 3% on top of market rates.

the max LVR as a foreigner I got was 40%, nothing new here since I am used to paying 50%+ in HK.

every single state is like looking at a different country for investing altogether, so don't just be tempted by gross yields. having said that i am very much a newbie for the US market, i am only focusing on particular areas which I know the chinese are buying up as these are areas where buyers are very much cashed up and rate rises don't necessarily affect them so much.

 

Here are some statistics on foreigners (non residents) buying property in USA.
Mind boggling, gives you an idea what we are seeing on the ground, the world is buying up. It is only in 2016 that we are now seeing residents overtaking foreign buying.

Foreigners in the main are cashed up investors, practically impossible to source finance unless you already have a portfolio in USA and you are accessing equity.

The U.S. Real Estate Market - Trends, Characteristics And Outlook | Seeking Alpha

 

Watch out for nannies

Detroit now has a bunch on other industries jumping in, to take advantage of cheap infrastructure and trained workforce

 

Calling BS on the claims on this forum here about Detroit.

Start following my buddy Jerry Paffendorf and his property analytics firm "Loveland" if you want to understand whats going on in Detroit.
- Jerry Paffendorf

Yes a lot of the USA is on an upswing from 08.....but the claims here about Detroit are to be taken with a grain of salt. Check out this article for some background - Loveland mapped every foreclosed and auctioned property in Detroit since 2002

 

thanks for your insight dean, slightly off topic any thoughts on flushing for investment given youre on the ground in ny ?

 

Queens is the next "hot" area now that Brooklyn has expanded as far as it can go.

This said....I think investing in NY is a terrible idea.

The property taxes are outrageous and the yields are low (relatively).

The USA market also swings more than Australia with ups and downs....so yes you can take advantage of that.