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anyone thought of buying property in America?

Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
not something i can afford to do unfortunately but i was looking on another forum i use and theres some astonishing stuff going on with American house prices and just wanted to share.

the US economy is screwed and just hope it doesnt happen as bad over here altho i wouldnt bank on it.

for example:

http://www.realtor.com/search/listingdetail.aspx?ctid=2000173&typ=7&sid=92da444b088348b5a89f99437b7510c9&lid=1094076197&lsn=2&srcnt=19768#Detail

a 2 bed flat in Brooklyn, fair enough, maybe not the nicest area, but i have been there and the majority of it wasnt that bad.

but $1600 for a full flat, thats like £800, its rediculous.

a slight step up you have:

http://cgi.ebay.com/Rent-Or-Flip-This-Is-The-Home-For-You_W0QQitemZ130193315430QQihZ003QQcategoryZ12605QQssPageNameZWDVWQQrdZ1QQcmdZViewItem

$18000 for that, of course they aint the same build quality as you find over here, but thats dirt cheap.

finally:

http://cgi.ebay.com/Rent-Or-Flip-This-Is-The-Home-For-You_W0QQitemZ130193315430QQihZ003QQcategoryZ12605QQssPageNameZWDVWQQrdZ1QQcmdZViewItem

£100k for a 3 story house in a nice suburb of Boston, way up on my list of places to visit.

its crazy.

just hope for gods sake that all you home owners dont get stuck in a similar situation.

:no:

Comments

  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    also, its not spam, altho it looks like it, i was just astounded and wanted to share
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    my dads buying me/an investment property in manhattan this summer :)

    im wanting to live there so we're going apartment hunting this summer.
    luckily he has a high budget so we'll be looking at some bigger places, but i guess even if the budget was lower it would still be ok finding a cheaper place.

    so excited :)

    he's given me the option to go to LA instead - but ive never been so im not too sure about that. would be better if i want to get into film production tho :chin:
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    the US economy is screwed and just hope it doesnt happen as bad over here altho i wouldnt bank on it.

    not enough houses in england for housing market to go seriously pear shaped!
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    not something i can afford to do unfortunately but i was looking on another forum i use and theres some astonishing stuff going on with American house prices and just wanted to share.

    the US economy is screwed and just hope it doesnt happen as bad over here altho i wouldnt bank on it.

    for example:

    http://www.realtor.com/search/listingdetail.aspx?ctid=2000173&typ=7&sid=92da444b088348b5a89f99437b7510c9&lid=1094076197&lsn=2&srcnt=19768#Detail

    a 2 bed flat in Brooklyn, fair enough, maybe not the nicest area, but i have been there and the majority of it wasnt that bad.

    but $1600 for a full flat, thats like £800, its rediculous.

    Surely that can't be right, you can't buy a decent car for that much!?
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    If you buy sensibly and can wait 10 years there is big money to be made, though I think you'd be wise to wait a bit longer, the bottom hasnt come yet.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    ruby_soho wrote: »
    Surely that can't be right, you can't buy a decent car for that much!?

    thats what i was gonna say, you can buy a flat for £800? i cant get my head round it?! my friend pays like that much rent a month for hers!
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    Yes also it depends where you buy and where people want to live - the property market in manhattan (like most of london) is still going up and up - so the bargains are often in areas where noone actually wants to live or where there are already lots of poor people.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    i fucked up the 2nd link, and cant find it again now.

    obviously that £800 flat doesn't look in a very nice area, but its still bizarre, even in the crack head parts of my town you pay min £20k for a burnt out shell.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    We thought vaguely about buying in Montana. Well I say that, I suggested it and it was mused over for three seconds before being dismissed :razz:

    My godfather lives in Brooklyn and he's been telling my parents to buy property there for as long as I can remember. I'd love to do it, but I bet there are numerous catches. It can't be as straightforward as buying an £800 flat and bob's your uncle. Can it?
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    how quickly do you get shot if you move there?
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    ROFL

    Even if that flat was £800 why would you buy it???

    It's in the Housing Projects

    If you want to live in the american slums (literally) then go for it, - sure rent it out - think they'll pay? :lol:

    As for the other comment about "all you home owners getting stuck in a similar position"

    What position would that be ?

    Anyone sensible who doesn't have much money would have a fixed rate anyway, at the moment, with the economy being so unstable, this means rates are going to go DOWN, not up

    As they try to save it

    So people who aren't fix rate, should wait for rates to drop shortly, then tie into a fix rate for 3-5 years and ride it out

    I am fixed in until 2011 so I am confident I will be OK

    Recessions have happened before and plenty of people still owned their homes at the end..
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    minimi38 wrote: »
    not enough houses in england for housing market to go seriously pear shaped!

    :lol: yeah sure, we've never had a housing crash over here :rolleyes:

    not sure i'd want to live in brooklyn but boston's okay, bb is right though there's probably some bargains but we're nowhere near the bottom yet, unless you're loaded might as well wait it out for a bit.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    Think you will find the market has changed a lot in the last 20 years...

    whats the ETA to deflation?
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    minimi38 wrote: »
    Think you will find the market has changed a lot in the last 20 years...

    whats the ETA to deflation?

    yeah 'it's different this time' i know that's what they've been saying for a while now.....well the banks have already taken ~$146 billion out of circulation with write downs so far and we're only getting started, the TAF auctions is the only thing keeping the banks solvent because the CP market is still frozen (and the TAF itself is deflationary as the loan has to be paid back plus interest), debt origination is declining almost as fast as house prices so i think you could call that deflation. wait til the CP rolled over from august expires this month and when the monoline bond insurers lose their AAA rating that is when SHTF and you might actually hear about it on the news somewhere lol.

    http://www.nytimes.com/imagepages/2008/01/31/business/20080201_ENVELOPE.html
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    Absolutely no way those flats are £800, must be a catch! If you go to rentals on that website you'll see the cheapest places are like £400/mth to rent nevermind buy. Cheapest places in the States will be like £15-20k for an OK place in the middle of nowhere (Wyoming desert) or inner city Bronx (which makes Brixton/Hackney/Oldham/Bradford/inner-city Glasgow look like paradise!). But yes, if you do your homework and have some spare cash investing in the States is very sensible, stuff right now is stupidly cheap, am thinking of getting something in Orlando or Miami but everyone says it won't exist in 2050 with climate change...
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru

    Lt. Commander Spoc + PrisonPlanet.org =


    ...
    minimi38 wrote: »
    whats the ETA to deflation?

    well?
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    One of my dads old weird friends has the right idea...he bought a property in Cardiff Bay before it got rejuvinated, then sold it on, bought properties in Bulgaria before it become a popular holiday destination, then sold them on. Has invested in an appartment in Dubai which is probably set to double/triple in value in the next 10 years maybe? Its all about having the money to start with really..I think croatia is going to be the next hotspot, Id certainly rather spend money on one of the up and coming european holiday destinations if I had the money. Rather than in America
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    Funny how he uses an Austrian definition of deflation then cites evidence of decreased money velocity as evidence of deflation in Japan.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    he's saying that decreased money velocity is a symptom of deflation (like equity market and real estate crashes), that doesn't contradict his argument or definition about the root cause of inflation/deflation i.e. net expansion of money supply and credit.

    please tell me we're not arguing about whether japan had a deflation.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    Anyone sensible who doesn't have much money would have a fixed rate anyway, at the moment, with the economy being so unstable, this means rates are going to go DOWN, not up

    I wouldn't be 100% sure - the bank of england base rate may go down to try to stimulate spending, but the mortgage rate is based on the cost of lending a mortgage to the bank. They've just realised it's a lot more costly than they thought, due to the risk of bad debts being higher, so they won't be passing on any rate cuts any time soon.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    he's saying that decreased money velocity is a symptom of deflation (like equity market and real estate crashes), that doesn't contradict his argument or definition about the root cause of inflation/deflation i.e. net expansion of money supply and credit.

    no shit he is. but why would he do that when austrians reject the idea that velocity is related to inflation/deflation and prices. to use the austrian definition then cite evidence of a result that is predicted by a rival theory that they reject means he can't be taken seriously.

    suppose thats why they havnt been part of the mainstream the last 60 years.

    please tell me we're not arguing about whether japan had a deflation.


    no i wasn't.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    well obviously he's not discounting money velocity and neither am i, it's a chicken and egg argument and i'm not austrian so why do i care, the guy makes sense and has been spot on with his calls for a while so i'm listening....

    btw shyboy the gov has just nationalised northern rock so watch out monday, mortgage rates are going up and the £ is going down.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    btw shyboy the gov has just nationalised northern rock so watch out monday, mortgage rates are going up
    No way in this environment will mortgage rates go up, BoE will be shaving yet another 25bps off in the next couple of months.

    I heart Alliance and Leicester. Got a mortgage in July - floating rate, 31bps below BoE. After the next rate cut it'll be just 4.94%!
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    ha well that's nice for you, no wonder a+l are desperate for cash their business model is fubared....for the average joe on a variable rate mortgage their rates will go up regardless of whether the BoE cuts rates, because the cost of borrowing is based on the long bond treasury market and crap fiscal policy means noone wants to hold £ anymore. same thing happening in america, where did all the cheap credit go?
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