USA Alert

[Nigel Kibel]

They have gone up a little

I did have some work done on them when I was there. The market in San Antonio has been good. It is predicted by forbes that it will have grow by nearly 7% next year. It did do better last year, however there may be a number of people who may suffer from the Sub Prime market. That is another reason why I am keeping a close eye on the market.

My personal view is that I will not buy anything until I see it. I musty amit I would love to be cashed up and over their at present.

 

[Nigel Kibel]

Indianapolis

In the current forbes web site www.forbes.com it lists Indianapolis as the 2nd best city to live in well in the United States. It was also rated recently as one of the best cities to invest in the United States.

 

[DavidMc]

I'm in LA right now. There is a whole 'investing in property' radio station, sounded like it was run buy the spruikers. One of the callers asked 'if they are such good investments, how many do you own'. It was interesting to see them weasel out of that one.

 

[BayView]

I'm in LA right now. There is a whole 'investing in property' radio station, sounded like it was run buy the spruikers. One of the callers asked 'if they are such good investments, how many do you own'. It was interesting to see them weasel out of that one.

What was their response?

Whereabouts in L.A are you Dave?

 

[JIT]

Interesting article below, some places still doing well in this 'US housing crash':

http://promo.realestate.yahoo.com/last_of_the_red_hot_markets.html

 

[BayView]

Interesting article below, some places still doing well in this 'US housing crash':

http://promo.realestate.yahoo.com/last_of_the_red_hot_markets.html

This is happening frequently JIT, but not reported all that often.

When the bigger towns and cities become expensive, the smaller, cheaper towns (although still big with populations of usually more than 50k) start to become attractive.

If they are within commute distance, which is 1.5 hours here, then you start to see steady immigration into those towns and the prices get forced up.

So, it's not all gloom and doom.

 

[Nigel Kibel]

Agree

Its another example of how the media, take a general view across the board. My view is that if you can get a 14-16% or beter return thats pretty safe, as long as the US does not go into a serious recession. I think that is unlikely.

I must admit I would love to be cashed up and back in the mistake. My business of selling cashflow positive properties into California will have to wait a little.

 

[twobobsworth]

The article now continues with a response from one of jenmans accussed!

http://www.jenman.com.au/news_question.php?id=254

 

[brisbane 04]

Hi All,
I'm one of those Australians who has purchased 4 properties through Dan.The proeprties ranged from $39000 US to $42000 US.I went to the States and saw each property.They were all in reasonable condition ie plumbing,electrics.They all had new floor coverings,new paint job throughout,new light fittings etc.For rehabbed properties they were in my opinion in good condition.Whilst over there I also went out with real estate agents to view properties they had for sale and some of the properties that had a similar price on them that Dan was selling his properties for were downright dumps and required a lot of work.I have found Dan to be easily contactable when I had issues with any of my properties and he would do his best to help me out.I was the person who he referred to in his response to Jenman regarding the sewer line which he fixed for nothing after I had bought the property off him.When repairs are needed (this mainly occurs after tenants have been evicted from the property and they have left a lot of damage behind) Dan was very,very helpful in providing repairs at a very reasonable price.Now I'm aware that Dan makes a good profit out of the properties by flipping them but so do a lot of investors here and over there.We spend half our time on this forum marvelling at property and how we can increase the value of it with a simple makeover etc.

I am now selling my properties over in Buffalo and its not due to the properties themselves,its mainly due to the tenants that you get and the way a majority of them disrespect your property.I will make a loss on the sale of them.

 

[toony]

I am now selling my properties over in Buffalo and its not due to the properties themselves,its mainly due to the tenants that you get and the way a majority of them disrespect your property.I will make a loss on the sale of them.

Thats probably what Jenman is getting at. The advisors/spruikers/investors focus on % returns. But with high returns comes risk. You only need a few dodgy tenants and your return falls considerably.

If there were really returns of 12-14% dont you think the Merrill Lynchs and Citibanks of the world like to form unit trusts to have those returns.

 

[brisbane 04]

Hi Toony,
You're right with high returns comes high risk no doubt about it,I just didnt realize at the time how bad the tenant situation is over there.I guess the reason why they dont buy there own homes is that it means they will have to look after them.

 

[Nigel Kibel]

If you get charged for advice

My point Brisbane 04 is that if someone charges you a fee to assist you to buy a property, they should have done enough research to cover things such as finance and property management. Perhaps you travelled their and saw things for yourself. Many did not. I cannot comment on Dan.

However others offered a service to buy properties for Australian investors. If the advice was wrong then they should take responsibity for that advice.

 

[steveadl]

Thats probably what Jenman is getting at. The advisors/spruikers/investors focus on % returns. But with high returns comes risk. You only need a few dodgy tenants and your return falls considerably.

If there were really returns of 12-14% dont you think the Merrill Lynchs and Citibanks of the world like to form unit trusts to have those returns.

Don't know much about all this, but had a quick look at the Buffalo property website and picked at random one of the 6 unit blocks advertised. They are claiming an 18%pa return (prior to PM, council and water I assume). If they are that good, then I agree - why aren't insto's jumping all over them to form investment funds to snap them all up!

 

[Don and Liz]

They are claiming an 18%pa return (prior to PM, council and water I assume). If they are that good, then I agree - why aren't insto's jumping all over them to form investment funds to snap them all up!

that's right steveadl - it's gross returns and they don't account for significant state taxes, pm fees, significant vacancy.

I have never heard of anyone who claims to have made any money through this investement.