ausie buyers warned off of US Property investment

[patb]

[quote=EconProf]Our real estate bubble was based on foolish monetary and governmental policies and was destined to pop. Australia’s healthy growth rate is based more on their natural reources, decent government, and future prospects, not reckless fiscal and monetary policies. I really don’t know if Australian real estate is in a bubble, or merely reflecting their underlying economic strengths. Either way, she still would have been better off to keep her money at home.[/quote]
Um why haven’t personal incomes kept up?
In melbourne the median house sells for 7.5X medina income.
Now the rise of the Aussie dollar is probably resource sales, but the real estate there?

Madness

[barnaby33]

You forgot the other two words Pat, “of crowds.” Don’t give Aussies any more credit for understanding ahem, credit. Oh and the awesomeness of loans in Oz is that they are all at most 5 year arms and all are recourse. That’s the magic of no Phony/Fraudie.

Josh

[barnaby33]

You forgot the other two words Pat, “of crowds.” Don’t give Aussies any more credit for understanding ahem, credit. Oh and the awesomeness of loans in Oz is that they are all at most 5 year arms and all are recourse. That’s the magic of no Phony/Fraudie.

Josh

[barnaby33]

You forgot the other two words Pat, “of crowds.” Don’t give Aussies any more credit for understanding ahem, credit. Oh and the awesomeness of loans in Oz is that they are all at most 5 year arms and all are recourse. That’s the magic of no Phony/Fraudie.

Josh

[barnaby33]

You forgot the other two words Pat, “of crowds.” Don’t give Aussies any more credit for understanding ahem, credit. Oh and the awesomeness of loans in Oz is that they are all at most 5 year arms and all are recourse. That’s the magic of no Phony/Fraudie.

Josh

[barnaby33]

You forgot the other two words Pat, “of crowds.” Don’t give Aussies any more credit for understanding ahem, credit. Oh and the awesomeness of loans in Oz is that they are all at most 5 year arms and all are recourse. That’s the magic of no Phony/Fraudie.

Josh

[CA renter]

Great article, patb, thanks for linking it.

IMHO, a lot of this “all cash” investing we’ve seen over the past 2-3 years is money from overseas investors. I think they’ve heard all about the “foreclosure crisis” and assume that there are tons of deals here — not realizing that the foreclosures are just the unwinding of sales and prices that wouldn’t have happened in the first place, if not for the *credit bubble.* The foreclosure are NOT bringing prices “below their fundamental value,” prices are simply coming down to where they belonged in the first place. These investors are not getting “deals,” even if they are foreclosures.

As the article points out, many/most of the areas that were first hit (and lost all the bubble air because the Fed/govt didn’t step in to prop things up until the price declines moved into the better areas) are not good neighborhoods, and not likely to yield good tenants who pay on time and keep everything nice and tidy. I think some of these “investors” are going to be surprised at how things pan out over the years. Real estate does not “always go up” in the U.S., contrary to what the used house salespeople might say, and being a landlord can be an absolute, money-losing nightmare.

[CA renter]

Great article, patb, thanks for linking it.

IMHO, a lot of this “all cash” investing we’ve seen over the past 2-3 years is money from overseas investors. I think they’ve heard all about the “foreclosure crisis” and assume that there are tons of deals here — not realizing that the foreclosures are just the unwinding of sales and prices that wouldn’t have happened in the first place, if not for the *credit bubble.* The foreclosure are NOT bringing prices “below their fundamental value,” prices are simply coming down to where they belonged in the first place. These investors are not getting “deals,” even if they are foreclosures.

As the article points out, many/most of the areas that were first hit (and lost all the bubble air because the Fed/govt didn’t step in to prop things up until the price declines moved into the better areas) are not good neighborhoods, and not likely to yield good tenants who pay on time and keep everything nice and tidy. I think some of these “investors” are going to be surprised at how things pan out over the years. Real estate does not “always go up” in the U.S., contrary to what the used house salespeople might say, and being a landlord can be an absolute, money-losing nightmare.

[CA renter]

Great article, patb, thanks for linking it.

IMHO, a lot of this “all cash” investing we’ve seen over the past 2-3 years is money from overseas investors. I think they’ve heard all about the “foreclosure crisis” and assume that there are tons of deals here — not realizing that the foreclosures are just the unwinding of sales and prices that wouldn’t have happened in the first place, if not for the *credit bubble.* The foreclosure are NOT bringing prices “below their fundamental value,” prices are simply coming down to where they belonged in the first place. These investors are not getting “deals,” even if they are foreclosures.

As the article points out, many/most of the areas that were first hit (and lost all the bubble air because the Fed/govt didn’t step in to prop things up until the price declines moved into the better areas) are not good neighborhoods, and not likely to yield good tenants who pay on time and keep everything nice and tidy. I think some of these “investors” are going to be surprised at how things pan out over the years. Real estate does not “always go up” in the U.S., contrary to what the used house salespeople might say, and being a landlord can be an absolute, money-losing nightmare.

[CA renter]

Great article, patb, thanks for linking it.

IMHO, a lot of this “all cash” investing we’ve seen over the past 2-3 years is money from overseas investors. I think they’ve heard all about the “foreclosure crisis” and assume that there are tons of deals here — not realizing that the foreclosures are just the unwinding of sales and prices that wouldn’t have happened in the first place, if not for the *credit bubble.* The foreclosure are NOT bringing prices “below their fundamental value,” prices are simply coming down to where they belonged in the first place. These investors are not getting “deals,” even if they are foreclosures.

As the article points out, many/most of the areas that were first hit (and lost all the bubble air because the Fed/govt didn’t step in to prop things up until the price declines moved into the better areas) are not good neighborhoods, and not likely to yield good tenants who pay on time and keep everything nice and tidy. I think some of these “investors” are going to be surprised at how things pan out over the years. Real estate does not “always go up” in the U.S., contrary to what the used house salespeople might say, and being a landlord can be an absolute, money-losing nightmare.

[CA renter]

Great article, patb, thanks for linking it.

IMHO, a lot of this “all cash” investing we’ve seen over the past 2-3 years is money from overseas investors. I think they’ve heard all about the “foreclosure crisis” and assume that there are tons of deals here — not realizing that the foreclosures are just the unwinding of sales and prices that wouldn’t have happened in the first place, if not for the *credit bubble.* The foreclosure are NOT bringing prices “below their fundamental value,” prices are simply coming down to where they belonged in the first place. These investors are not getting “deals,” even if they are foreclosures.

As the article points out, many/most of the areas that were first hit (and lost all the bubble air because the Fed/govt didn’t step in to prop things up until the price declines moved into the better areas) are not good neighborhoods, and not likely to yield good tenants who pay on time and keep everything nice and tidy. I think some of these “investors” are going to be surprised at how things pan out over the years. Real estate does not “always go up” in the U.S., contrary to what the used house salespeople might say, and being a landlord can be an absolute, money-losing nightmare.

[patb]

[quote=CA renter]Great article, patb, thanks for linking it.

IMHO, a lot of this “all cash” investing we’ve seen over the past 2-3 years is money from overseas investors. I think they’ve heard all about the “foreclosure crisis” and assume that there are tons of deals here — not realizing that the foreclosures are just the unwinding of sales and prices that wouldn’t have happened in the first place, if not for the *credit bubble.* The foreclosure are NOT bringing prices “below their fundamental value,” prices are simply coming down to where they belonged in the first place. These investors are not getting “deals,” even if they are foreclosures.

As the article points out, many/most of the areas that were first hit (and lost all the bubble air because the Fed/govt didn’t step in to prop things up until the price declines moved into the better areas) are not good neighborhoods, and not likely to yield good tenants who pay on time and keep everything nice and tidy. I think some of these “investors” are going to be surprised at how things pan out over the years. Real estate does not “always go up” in the U.S., contrary to what the used house salespeople might say, and being a landlord can be an absolute, money-losing nightmare.[/quote]

if you need a broker, that’s 10% brokerage fee,
then you need to assume a 10% vacancy rate and
any repairs you need a proerpty manager, so that’s 10%.

if you are around, you can show the place.
if you are around, you can manage repairs.
if you are around, you can sequence tenants tighter.

If you can’t be close, don’t be a landlord.

[patb]

[quote=CA renter]Great article, patb, thanks for linking it.

IMHO, a lot of this “all cash” investing we’ve seen over the past 2-3 years is money from overseas investors. I think they’ve heard all about the “foreclosure crisis” and assume that there are tons of deals here — not realizing that the foreclosures are just the unwinding of sales and prices that wouldn’t have happened in the first place, if not for the *credit bubble.* The foreclosure are NOT bringing prices “below their fundamental value,” prices are simply coming down to where they belonged in the first place. These investors are not getting “deals,” even if they are foreclosures.

As the article points out, many/most of the areas that were first hit (and lost all the bubble air because the Fed/govt didn’t step in to prop things up until the price declines moved into the better areas) are not good neighborhoods, and not likely to yield good tenants who pay on time and keep everything nice and tidy. I think some of these “investors” are going to be surprised at how things pan out over the years. Real estate does not “always go up” in the U.S., contrary to what the used house salespeople might say, and being a landlord can be an absolute, money-losing nightmare.[/quote]

if you need a broker, that’s 10% brokerage fee,
then you need to assume a 10% vacancy rate and
any repairs you need a proerpty manager, so that’s 10%.

if you are around, you can show the place.
if you are around, you can manage repairs.
if you are around, you can sequence tenants tighter.

If you can’t be close, don’t be a landlord.

[patb]

[quote=CA renter]Great article, patb, thanks for linking it.

IMHO, a lot of this “all cash” investing we’ve seen over the past 2-3 years is money from overseas investors. I think they’ve heard all about the “foreclosure crisis” and assume that there are tons of deals here — not realizing that the foreclosures are just the unwinding of sales and prices that wouldn’t have happened in the first place, if not for the *credit bubble.* The foreclosure are NOT bringing prices “below their fundamental value,” prices are simply coming down to where they belonged in the first place. These investors are not getting “deals,” even if they are foreclosures.

As the article points out, many/most of the areas that were first hit (and lost all the bubble air because the Fed/govt didn’t step in to prop things up until the price declines moved into the better areas) are not good neighborhoods, and not likely to yield good tenants who pay on time and keep everything nice and tidy. I think some of these “investors” are going to be surprised at how things pan out over the years. Real estate does not “always go up” in the U.S., contrary to what the used house salespeople might say, and being a landlord can be an absolute, money-losing nightmare.[/quote]

if you need a broker, that’s 10% brokerage fee,
then you need to assume a 10% vacancy rate and
any repairs you need a proerpty manager, so that’s 10%.

if you are around, you can show the place.
if you are around, you can manage repairs.
if you are around, you can sequence tenants tighter.

If you can’t be close, don’t be a landlord.

[patb]

[quote=CA renter]Great article, patb, thanks for linking it.

IMHO, a lot of this “all cash” investing we’ve seen over the past 2-3 years is money from overseas investors. I think they’ve heard all about the “foreclosure crisis” and assume that there are tons of deals here — not realizing that the foreclosures are just the unwinding of sales and prices that wouldn’t have happened in the first place, if not for the *credit bubble.* The foreclosure are NOT bringing prices “below their fundamental value,” prices are simply coming down to where they belonged in the first place. These investors are not getting “deals,” even if they are foreclosures.

As the article points out, many/most of the areas that were first hit (and lost all the bubble air because the Fed/govt didn’t step in to prop things up until the price declines moved into the better areas) are not good neighborhoods, and not likely to yield good tenants who pay on time and keep everything nice and tidy. I think some of these “investors” are going to be surprised at how things pan out over the years. Real estate does not “always go up” in the U.S., contrary to what the used house salespeople might say, and being a landlord can be an absolute, money-losing nightmare.[/quote]

if you need a broker, that’s 10% brokerage fee,
then you need to assume a 10% vacancy rate and
any repairs you need a proerpty manager, so that’s 10%.

if you are around, you can show the place.
if you are around, you can manage repairs.
if you are around, you can sequence tenants tighter.

If you can’t be close, don’t be a landlord.

[Author]

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