Property Direct America and GO Zone/SRAP programs

Discussion in 'Property Investment - Other' started by Humphrey, 29th Aug, 2008.

  1. Humphrey

    Humphrey Member

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    I came across this site today:

    http://www.propertydirectamerica.com

    There are also numerous other companies doing a similar thing.

    They build/sell new homes in the recently flood ravaged areas of the US (otherwise known as the "GO zone"). These properties conform to the SRAP program meaning that the US government provides some hefty incentives for investors such as 50% depreciation in the first year.

    I was a little surprised that it hadn't been discussed in this forum. (I couldn't find any results for "go zone" or "SRAP")

    I'm interested to hear comments or first-hand experiences?

    EC
     
  2. Jan and Tom

    Jan and Tom Member

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    Property Direct Group Australia

    Hi Ethan,
    We're surprised nobody has responded to this as it is a hot issue at the moment. Jan and I represent the company whose site you were looking at here in Australia now. We are personally buying 2 duplexes for ourselves and also are helping a group of 37 buyers here in Adelaide with their GO Zone purchases. I visited the site as a purchaser and met with builder/developer in August. I was so impressed we took up the offer to represent them here in Australia.
    If you want to talk some more about this just let us know.
    Have a look at www.pdgaustralia.com
    Jan and Tom
     
  3. Aaron Sice

    Aaron Sice Seldom Seen Kid

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    disaster capitalism at it's best.

    Still, how does someone know this thread even existed? do you google your own website addy every hour?
     
  4. Humphrey

    Humphrey Member

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    Yes I was also surprised at the lack of response. Not even any naysayers.
    Thanks for the link. I'll check it out and continue my DD.

    EC
     
  5. boomtown

    boomtown Member

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    Dont forget your flood insurance.
     
  6. letiha

    letiha Member

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    lol...boomtown that was just to easy.
     
  7. redwing

    redwing Progress Not Perfection

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    Ozperp posted something earlier on the Go Zone?

    TIC are also looking over there
     
  8. Zhouse01

    Zhouse01 Member

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    Can you explain how it works and also implications for Australian investors that build over there?
     
  9. redwing

    redwing Progress Not Perfection

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  10. boomtown

    boomtown Member

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    Suffice to say that there are areas of New Orleans, like most other US cities where it is not appropriate for white people to go. It is possible to hire armed off duty police officers to escort you but its an expensive way to collect the rent each month. This isnt Bankstown because bored young kids in Bankstown dont have ready access to assault rifles.

    And it can be as simple as being a tourist on a bus, missing your bus stop and travelling 2 blocks too far - the demarcations are very sharp.

    Unless you are on the ground and know the area well you will not know what you are getting yourself into. Google street view won't tell you where the go / no go zones are.

    So to invest in a program like this you need to fly to Missippi and get on the ground. If you try to do it from behind a computer in Australia you are a ****ing idiot and deserve to lose all of your money.

    And dont forget this link: http://www.jenman.com.au/news_item.php?id=397

    And he is a public warning from the Mayor of Buffalo warning foreign investors not to invest in Buffalo residential housing: http://www.buffaloflipping.com/Learn.htm
     
    Last edited: 19th Sep, 2008
  11. Humphrey

    Humphrey Member

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    It's a little disappointing that some of the comments here are let's say "less than constructive".

    I view this as an "investment opportunity" which needs to be put through proper due diligence. That's why I'm not particularly concerned with dangerous parts of New Orleans. Due diligence points out that the properties are not in New Orleans, nor are they in Buffalo. They are in Biloxi, Mississippi. http://en.wikipedia.org/wiki/Biloxi,_Mississippi.

    The region certainly has some concerns. For example 14% of people live below the poverty line. What was even more interesting is that the US average for living below the poverty line is 12.4% and the state average is 19.9%! (2000 figures). Does anyone know what the % is for Australia?

    I think that there probably is some sort of catch involved. Maybe in the form of undesirable tenants, excessive construction costs, or other hidden developer fees. Still there are some attractive investment incentives in an environment where the US lending is in turmoil. The investigation continues and I look forward to asking lots of questions at there upcoming presentation.

    EC
     
  12. Aaron Sice

    Aaron Sice Seldom Seen Kid

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    sorry dude but the civil war that is everyday american ghetto life just isn;t appealing - add to the fact that you're rebuilding in an area that is

    a) 2-3m below sea level
    b) in hurricane alley
    c) a whole ghetto-city with
    d) people living below the poverty line because
    e) the only jobs markets are Wal-Mart and maybe an odd rig worker.

    pretty much scratches ALL the boxes for a fundamentally strong investment property.

    considering i can go to detroit and get a whole block for $50 USD, with the only risk being looting, why would i invest in New Orleans considering the above info AND looting AND it's about 2000% more expensive?
     
  13. Humphrey

    Humphrey Member

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    NOT in New Orleans!

    Does anyone actually read other posts before they reply?

    These properties are NOT in New Orleans, they are in Biloxi, Mississippi.
     
  14. yo yo ma

    yo yo ma Member

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    This must be a common theme?:D
     
  15. boomtown

    boomtown Member

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    Mississippi is by far the poorest state in the US.

    http://en.wikipedia.org/wiki/States_of_the_United_States_by_income

    I dont know what makes you think just because its Biloxi instead of New Orleans that you wont have gun crime, drug problems, rental defaults etc etc.

    If you really want to do your DD - get on a plane and get on the ground in Biloxi. If you dont do that then you are just ******* your money away.
     
  16. Aaron Sice

    Aaron Sice Seldom Seen Kid

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    there's a similar incentive company for New Orleans - my bad.

    still - the whole Mississippi delta is prone to flooding - just like New Orleans.

    i won't press the case any further. good luck and godspeed.