Atlanta housing market woes

[weg]

Thought some here would be interested in this recent article that's specifically on the Atlanta housing market.

http://www.nytimes.com/2012/02/01/b...-woes-reflect-nations-economic-pain.html?_r=1

1 in 4 jobs lost in the broader metropolitan area were (apparently) in RE/construction alone.

It must have been some boom they had.

 

[Oscar]

from the article; “I am concerned as a citizen,” he said. “And on the other side as an investor, I see the opportunity of a lifetime.”

It's an unbelievable opportunity. I should have started investing here a bit earlier. I've picked up 2 properties with Karina's help. It's getting much harder sourcing great deals at this time....

 

[virgo]

Atlanta

Hiya Oscar

The yields do look incredible on paper...but i am curious; after the dust has settled on purchase, have you actually started receiving CASH in your pocket yet???

That is the crux of the whole matter

Will be interested to know....

thanks

 

[spooky]

I concur with Oscar on this one

If you had purchased 12 to18 months ago then you would have lost some capital
I guess it still may not be the bottom but signs are there.

The more I read the article the more I see opportunity

 

[Belbo]

You'd just want to take care that none of that blood you're wading through is your own -

Baron Rothschild, an 18th century British nobleman and member of the Rothschild banking family, is credited with saying that "The time to buy is when there's blood in the streets."

He should know. Rothschild made a fortune buying in the panic that followed the Battle of Waterloo against Napoleon. But that's not the whole story. The original quote is believed to be "Buy when there's blood in the streets, even if the blood is your own."

Read more: http://www.investopedia.com/articles/financial-theory/08/contrarian-investing.asp#ixzz1sp0v8SrD

 

[Oscar]

Hiya Oscar

The yields do look incredible on paper...but i am curious; after the dust has settled on purchase, have you actually started receiving CASH in your pocket yet???

That is the crux of the whole matter

Will be interested to know....

thanks

Hi Virgo - I believe it will be approximately 12 months before I could answer your question with any validity.

The first property closed in March. It then underwent a cosmetic rehab that was completed in early April and went on rental market. Received application in April after just one week on market with plan for tenants to move in first week May.

I haven't closed on the 2nd property yet.

I disagree that cash in my pocket through a good yield is the crux of the whole matter. For me, that is just icing on the cake. When the AUS/US$ reverts to historical means (not if, when), and when the value of the properties rise (not if, when), I'll sell them all for a nice cap gain and exchange rate win. I know this sounds a bit cocky, but that's the plan. Any portfolio should comprise of a small % of speculative investment. Money you could afford to lose.

 

[virgo]

Hi Virgo - I believe it will be approximately 12 months before I could answer your question with any validity.

Any portfolio should comprise of a small % of speculative investment. Money you could afford to lose.

Hi Oscar

Am not rubbishing your latest venture at all; in fact i am asking (and learning) as i am intrigued and interested myself:

And i have been following your past posts with much interest (and not simply because my other half is Irish hope the emerald isle is treating u well!) your "woke up and find myself a millionaire" post was inspiring to say the least

so there ! i will hold you accountable for your report in 12 months' time in which time i hope to be ready!!

 

[Oscar]

no problem virgo, I didn't take it as any criticism at all. Not that that would have been a problem anyway. Yes, maybe I should update this in 6 or 12 months.

The Irish and Ireland are great. It's a privilege working and living here.

 

[MTR]

I concur with Oscar on this one

If you had purchased 12 to18 months ago then you would have lost some capital
I guess it still may not be the bottom but signs are there.

The more I read the article the more I see opportunity

No, this is not the case, infact the properties I started purchasing 12 months ago at $37,000 am now looking at paying around $60,000 today.

I don't believe this article reflects accurately what is happening in Atlanta today.

I have purchased 8 properties to date all grossing 20%+ yields, all rented out immediately after renovation. Have currently 2 rehabs on the go. It has taken me 12 months to purchase properties that met my criteria.

So far so good. Have not had any major issues, but I think the biggest challenge will be property management without a doubt.

Cheers MTR