Forum Replies Created
- Charles 1 wrote:Interesting article in Property Update yesterday on investing in the USA.
http://propertyupdate.com.au/articles/is-the-investment-grass-really-greener-in-the-us.html
Read it and take out of it what you will. There are always different opinions on how and where to invest
well the first thing i took out of this is that the guy has no idea what he is talking about and should not be writing an article without checking his facts……..”That’s right – there are some places in America where you can’t give a home away at any price!
If these properties are such a good deal, how come the locals aren’t buying them? Right now, home loan interests rates in the USA are less than 1% – often 0.5%. That means a local could borrow $40,000 and pay $400 a year in interest! If these properties were so good, why wouldn’t they buy them instead of paying $200 a week in rent or why wouldn’t the locals buy them as an investment?”how can these guys be so dumb? they dont even understand the interest rate situation in the USA…..so how much research have they done?
why would you read any more from this guy?
“brilliant business those banks are in, borrow at 0.50%, and get 4% back…”
The problem for the US banks is that rates wont always be at .25-.5% but they have to commit to 30 years at 4%
so in 3 years after recovery comes then rates are back to 2-3% the margins are not so good.yes huge mistake by Jenman
Sceptical Steve wrote:Perhaps those that are keen to invest in the USA should first read what Neil Jenman (a well recognised consumer advocate) has to say on the topic – click on the link below. As a Licensed Estate Agent and Property Advocate, my recommendation is that people should be very careful when they are about to part with their hard earned cash. The old adage of “if it sounds too good to be true, then it usually is” resonates strongly with this type of investment.“Right now, interests rates on home loans in America are half a percent. That means an American family can borrow $50,000 and pay $250 a year in interest! Why, then, would that same family pay $200 a week in rent when they can buy the property for a far lower payment? Something just doesn’t seem right, does it?”
ROFL Jenman claims others should do their research whilst claiming that interest rates in the USA are available at half a percent interest. A cursory glance at the internet would have shown him that he is WRONG. That is not a small mistake its a whopper….with double cheese.
See the chart below for details…National mortgage rates
11/22/2010 8:58:36 PM
LOAN TYPE +/- RATE
30 Yr Fixed 4.56%
15 Yr Fixed 3.97%
30 Yr Fixed Jumbo 5.25%
15 Yr Fixed Jumbo 4.60%Banks can get their money at half a percent but the average guy cant and the average guy is struggling to qualify for a loan with the stringent requirements.
So how well researched is Neil Jenman consumer advocate?
