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Fascinating thread.
It would appear Doc Holliday's "2 cents worth" is actually only worth 1.5 cents………..and falling.
Current property investors in the Port Hedland area appear to have a dilemma.
Do they cut their losses sell up and run, or ride out the storm and hope things stabilize or even rebound??
Unfortunately their losses are magnified as it is such an expensive market to buy into.
Thanks for everyone’s comments above.
Coolharry67 – A fascinating read. Cheers.
Thanks everyone for your input.
Thejajco, thanks for your candid response about your experiences in Buffalo.
I am very interested to hear how things play out.
Hope you get the best outcome.
When I was much younger in the 1980's I watched a silly movie called "Gremlins". It had several funny lines and one sticks with me. If you added water to these Gremlins they re-produced like crazy. So picture all these nasty Gremlins running around the place. One Gremlin was particularly smart and pretended to be a stock broker on the phone. He speaks on the phone in the most serious voice: "I'm advising all my clients to invest in guns and canned food".
Well I thought it was funny.
"When China slows, so does Australia hence the AUD slides and I would imagine puts pressure on a real estate bubble"
Just so I'm clear. Your saying that the Australian $ has dropped below parity because China's economy has slowed and this will create a real estate bubble.
In the famous words of Pauline Hanson: "Please explain".
Chris, I just don't share your pessimism in the world economy.
Great to hear from you Rosa.
Awesome outcome.
Will be even better if the Aussie $$ continues to slide.So far the feedback has basically been: Avoid Bufallo.
You would have to question why a financing vendor would take such a high risk borrowing money into a bad market.Fascinating.
It would appear Jajco’s options are not so simple.
It would also appear the current property managements advice to walk away and default could be bad advice.
Jajco’s, how’s it panning out?? and good luck.Nigel
To save me hours of Googling and research.
What’s wrong with Buffalo??
What would attract someone to buy an investment property in Buffalo? The bank must have had some faith in the deal if they helped fund the deal.
I don’t recall Buffalo ever being offered/advertised/portrayed as an appealing option for overseas investors.
For example, most people know Detroit is a basket case (unless you really know what your dealing – apparently).
cheersJacM of 1992 posts. I’m rating your post with a thumbs up.
If the pattern of the last 120 years holds true, and I reckon it will.
The good times are not too far away.Has anyone heard from Rosa Tong lately????
Hope she sorted this mess out.
JacM (1990 posts!!!!!! = Awesome) –
I reckon that’s a pretty safe bet. During the good times, I also reckon the top-end property market will fly the highest.
Freckle
How on earth have you made 1115 posts in 16 months????
I decided against trawling through 1115 posts so I’ll ask here:In fact, I will re-ask Geddo’s question from above: Why do you hang around a property investing website when you state “the entry time for property is not now. Hasn’t been for years now”?
I am confused by another comment you made: “Never said property as a class was a bad investment”. Then you go onto explain why property as a class is such a bad investment. Well, a bad investment until certain “fundamentals” have improved. Which fundamentals would you like to see improved before advising everyone to jump into the property investing marketplace??
You made this interesting comment: “If the dollar keeps falling you might see the large markets struggle as overseas investors pause or some prefer to liquidate and move to other markets”. I was under the impression that if the A$ continue to fall then it would actually encourage international investment as investors will get more bang for their buck.
You appear to expend a lot of energy advising people not to buy property as an asset class until fundamentals improve. What asset class do you advice people to enter for wealth creation?? If any?
Flush. Oops. There goes the Perth market down the crapper. It might drift lower. It might not. Mandurah?? Is there a correlation between the Mandurah property market and the market in Perth??
You state there will be a “substantial correction” in the value of properties in Australia. For this to happen Australians selling their property will have to accept a substantial loss if they sell. I suspect many Australians would rather hold the property than accept a substantial loss.
I used to get this daily email: “Money Morning” and “The Daily Reckoning”. Wow. Some of the most negative financial news you could get every day in your inbox. The worldwide collapse was imminent. “BUY GOLD” they screamed (Silver was ok to). “SELL YOUR HOUSES – Market correction 30% – 60% around the corner”. Well that was back in 2010. Maybe one day their message will be vindicated. But not today. I couldn’t stand their negativity so I deleted the subscription.
Go well Freckle of Mandurah.
The first thought that came to my mind was: Sack your lawyer.
I have never heard of a court injunction preventing someone from filing for bankruptcy.
I just had a glance at the Commonwealth Bankruptcy Act 1966. It looks long and complex. To muddy things further, there appears to be variations between the States.
I would seek proper legal advice with the goal of filing for bankruptcy and getting the creditors off your back.
All the best in your endeavours in what appears to be a rather complex case.
Out of curiosity:
Who is the mortgage through??
Why Buffalo, New York??
Define “ruined”.
Define “poor property management”.
When did you purchase the house??
Who did you purchase the house through?? i.e. Buyers Agent??If you successfully got a mortgage through a US bank then presumably your deposit was sizable (upwards of 50%). By US law, you can walk away from a mortgage with a US bank. Simply send the keys back to the bank. Your credit rating will be toast however. Not to mention your deposit. I’m not actually sure if this will impact upon future loan applications in Australia.
If the mortgage originated in Australia that got you the house in Buffalo……Well, the Australian bank will want its money back…….with interest.
I've had lots of promises but nothing yet.
"All talk and no action." as the saying goes.
It would appear the tenant has stopped paying. I probably wouldn't know this if I hadn't of made repeated enquiries.
The level of communication is terrible. I still can't work out whether its because they are apathetic, incompetent, inexperienced or overworked. Maybe a mixture of several. Maybe something else.
I know, I'll hold my breath…………….
Hi Rosa
Any feedback on the cleanup of the house??
I'm lead to believe finding tenants in KC is difficult in January (bloody cold!!).
Hope it goes well for you.
Gary
Sounds like a half glass empty approach to me.
USA – going broke
Greece – broke/harsh austerity measures/defaulting
Spain – 25% unemployment
UK- double dip recession on the way
France – massive debt problems
China – hard landing
Germany – weak
Euro – collapsing
Australia – "Massive property bubble" Harry Dent
Ireland – in strife and part of the P.I.G.S alliance
Portugal and Italy – see above
Fiji…………..Can't go wrong there can you??? Unless Emperor Bainimarama decides he doesn't like foreign ownership and takes away all foreign owned property.
etc etc
What's your risk profile???
You can buy a mediocre investment property in mediocre Adelaide in a mediocre suburb for $400,000 with $15,000 stamp duty. Or you can buy a mediocre house in a mediocre US city in a mediocre neighborhood for $50,000 with a couple thousand in buying costs.
The indicators I am getting is that the US economy is improving.
– Fracking will have the US energy issues self reliant in about 10 years. No more reliance on the Middle East.
– Unemployment is coming down.
– More importantly, jobs are being created.
– Some companies who went offshore are now coming back. "We were losing control and a big increase in corporate espionage"
– China will do everything in its power to keep the US afloat!!!! Because they are massive consumers of Chinese products.
– Foreclosures are decreasing
– Historically the US has been a very resilient and innovative country.
– Silicon Valley continues to lead the world in electronics
– Home to many of the best Universities/Colleges in the world.
This is all off the top of my head.
Again what's your risk profile???
Tip to anyone. If your conservative. Pay off your Visa card. Pay off your house. And pump excess cash into Super. Your unlikely to go wrong.
Unless GFC 2 comes along. In which case: Buy gold.
Hi Rosa
As I see it, this is one of the main problems Australians will have investing overseas. Apathetic, incompetent or simply inexperienced property managers who know you are 14,000 kilometers away.
I have 2 property managers here in Adelaide. If there are issues, flick them an email, pick up the phone or take the 5-10 minute drive to their office. Hell, on the way there do a drive-by your investment property.
Problem resolved.
Not so when you are 14,000 km's away.
So you sought legal advice and got yourself a new property manager.
How did you source a new property manager and what do you mean by "contact your Legal Rep". Did you have a Legal Rep on stand-by in Kansas City or did you have to source one of those as well?? Is this not cost prohibitive?? Presumably you exhausted all other avenues before taking up this option?
Thanks for your input Rosa
Gary
Hi Rosa.
What problems are you having with them???
Thanks
Turns out some Australian investors who had their bank account setup with Wachovia then migrated over to Wells Fargo are now having issues.
Long story short.
Some international accounts have been made "dormant" as the account holder had not been to an ATM machine or used a cheque in the US despite regular deposits. Now there is some exercise in bringing these accounts back to life.
Someone interpreted this as Wells Fargo closing international account holders down.
Incorrect.
More a misunderstanding than a hoax.
