Miami, Florida, 50% Off!!!!

[kamchatsky]

Maybe with Strong Aussie dollars we can pick up some bargains there?!

MIAMI, FLORIDA: HOUSING CRASH 50% OFF!!!!

http://www.youtube.com/watch?v=tkuW8bCjC6c

CENTRAL CALIFORNIA HOUSING CRASH

http://www.youtube.com/watch?v=QVFBojFJTZM

 

[Sunfish]

What has the strong A$ got to do with it? They either are, or are not, value in the local currency.

Some people, me included, reckon the US$ will continue to slide vis the A$ so there is currency risk involved in buying off-shore.

Me? I'm about to retire so maybe cheap property in Florida has some appeal. Might even have Greg Norman as neighbour.

 

[Zimonya]

I think that it would depend on your time horizon and your economic view I would have thought that given that generally house prices over the longer term keep up with inflation and if you are believe in austrian economics there is a relationship between a currency's value and inflation it would be a good idea. The value of the mortgage would be eroded by inflation at a faster rate whilst theoretically the real value of the house should remain relatively constant. In addition you might pick up a bargain at present

 

[grossreal]

hi all
I think that it will be very good buying in the states just not yet.
and I would not buy the houses I would look at a fund that was buying the lenders on the houses so the small banks.
the loan books are going to be very cheap and by holding the loan books as the people default you get the houses for less
value and price are very different things.
the us market is going to correct alot more yet I think so at 50% for boston texas and a couple of others I would not be supprised to see 80% drop.
now thats a fall
and when you have those falls you have the lenders free falling.
AND THEN YOU WILL SEE THE FUNDS COMMING OUT OF THE WOODWORK.
and thats when eyes will be looking at the us.
just my .002

 

[BayView]

Agree with GR.

A few considerations for that area to be aware of:

1) Southern Florida is a bit of retirement centre, so you are relying on empty-nesters in many parts of the State as your clients - as renters and/or future buyers.

T2) here are also a huge number of holiday makers go there, so many houses/apartments are owned by people who go there and spend time in their holiday property, or rent it out to short-term tenants for a week here or there.

3) I'm not sure how good the long-term tenant market is based on this.

4) Also, as with most of the US, individual properties struggle to get good PM's - most are involved in the apartment side of the market.

5) This area is experiencing a severe hit to the apartment market at the moment due to over-supply, over-price and the whole sub-prime mess.

So, in summary; get ready for an opportunity to make some nice cap gains when the market improves (this could be 5 more years), but be prepared for some very ordinary cashflow and possible difficulty getting a PM, and keep in mind there will be no tax benefits on your Aus income.