USA – Where to buy?

My proof reading needs working on!!!!
In a previous post I said "There's massive junks of information on each city……"
FAIL
I should of said "There's massive chunks of information on each city….."
None of the information is junk. It's all important. It's really a matter of what you place more importance on.
Thanks.

Yes. There are bargains in Cleveland. Increased foreclosures have placed pressure on the rental sector as people are looking to rent a home instead of purchasing one. I read somewhere that over 50% of all properties in Cleveland are rentals. So there's high demand to rent your property.
Cleveland's largest employer is the Cleveland Clinic which consistently ranks as the nation’s top cardiac care centre.
Cleveland is (supposedly) an emerging area for biotechnology and fuel cell research with a huge emphasis on health and technology.

I read that since January 2010, Northeast Ohio has seen employment growth in its two largest sectors. Manufacturing employment which grew by approximately 8,000 jobs between January and June of 2010, while the service sector employment grew by nearly 48,000 jobs.

Eventually you get to the stage where you just have to bite the bullet or forget about it.  

I have just returned from Dallas and I can tell you….all my months of research was justified. I am now the owner of two more US properties (in 30 days time anyway). The company I dealt with was fantastic and provide the refurbished properties and property management and the big one…finance for foreign nationals. I checked all the deals with someone else I knew who had access to the MLS so I could check on comparable sales in the area's and all come back good. Plus I have the benefit of knowing the banks will do their own appraisals. When doing the calculations using worst case numbers…I make over $800 a month after all taxes,insurances and loan repayments.
PM me if you want the details of the company (not one of the Aussie Buyers Agents) as I don't think I can name them without the moderator removing the name for advertising reasons

Hi All,

Not Euro, Dollar, or Yen but the ‘Innovation’ is the currency of today’s global economy. Innovation fuels productivity, attracts investments, and stimulates economic recovery. The spirit of innovation is evident in Florida; as it is getting reputation of “Innovation Hub of Americas”. Let’s see why Florida is much more diverse than theme parks and famous beaches; and what reputed global researching firms say about it.

Among all American states, Florida:

— ranks 1st for business (The Chief Executive)
— national leader for entrepreneurial activity (Kauffman Foundation)
— business climate is among top 5 (The Tax Foundation)
— ranks 3rd as largest state for hi-tech companies (TechAmerica CyberStates)
— ranks 3rd as largest exporter of hi-tech goods and services (TechAmerica CyberStates)
— ranks 4th largest CyberStates for hi-tech employment (TechAmerica CyberStates)
— has one of the world’s most extensive multi-model transportation system
— one of the only states which have a clear vision for long term future plans – Strategic Plan for Economic Development. Please ask us for a free copy.
— workforce Ranks 1st on America’s top states for business ranking (CNBC)

*************** above facts are excerpts from US Federal and Florida State governments data. ***************************

Hi there,

My advice is to choose one or two markets and really focus on an extensive due diligence process.  If you're an experienced investor, you already know where you want to invest, for those just starting out, choose a house in a city that you would live in.  You may achieve smaller returns, however, there will be significantly less risk and stress.  Obvious things to look at are schools, crime rates, infrastructure, growth rates etc.  All of these really tie into the same philosophy – Are there enough reasons people would want to live in and/or move to a particular market.

My personal preference is sunny, safe and growing Tampa, FL.

-Kev  

There's no such thing as a free lunch and that saying is most relevant in the USA where everyone is after their slice of the 'American' pie before you get to it.

Good advice from DetroitDan and exactly what I have been emphasising to Aust/NZ buyers for the last 2 years. Check the comps. Time and again I have seen houses offered for sale to investors that are twice as much as those sold in the street in the previous 3 months and 3 or 4 times the price of the foreclosure for sale, available today. On some occasions I have seen the exact house being offered for $50k, for sale for $15k where the listing has not been deleted.

Well done on the research Morpheus. Don't over analyse too much – a lot will come to you once you are in the US and hopefully your decision making process will be a lot easier once you are on the ground.

Best of luck with your trip.

Ian
http://theblockblog.com
Free Property Investment Information, Tools & Resources for Investors with a Sense of Humour – USA, Aust, NZ

Texas has a 3% property tax but no other taxes. The only city that has no zoning laws in Houston. However strong zoning laws apply in most of the rest of Texas. I do think that there are issues with many other locations. It is about doing your own detailed research.

Texas is part of what is also now called the Texaplex, which comprises Houston, Dallas / Fort Worth /  San Antonio / Austin,  it houses over 80% of the States Population, Houston is the largest City in the southern United States and the 4th largest overall.

It's one of the fastest growth cities in the country, with a massive migration from other States, and although properties have, like most everywhere else declined in values, you still have a huge choice of high quality properties with a very good built in equity from day one for some really great prices, which in turn, attracts a higher standard of tenant.

As for the Taxes, the following is from the Harris County ( Houston ) Tax Office.

Three factors determine the total amount of taxes imposed on a property. These include the appraised value established by the appraisal district for the county in which the property is located; the exemptions, if any, to which that property may be entitled, such as the homestead exemption for owner-occupied residential property; and the tax rates set by the governing bodies of the taxing units (jurisdictions) in which the property is located. The purpose of the appraisal is to allocate the tax burden fairly among all taxpayers.

They are actually determined  September / October each year.

But with the rents holding up and the number of job opportunities also holding up, together with a high population migration. Houston would have to be still one of the better locations to consider purchasing.

All the other cities in the Texaplex, are also great investment locations, and each has it's own unique reasons to buy.

Also, if looking at other Cities, there are some very good opportunities in Orland / Tampa, / Memphis / and some other very good locations to consider, all with their own positives and negatives.

Again, as mentioned already, you have to due your own DD and know what you are trying to achieve.

You also need to get the right expert US Tax Advice for your own situation, and for a particular state, which is available in Melbourne.

Jeff   [email protected]

Not to argue, but when you take a starting price of  50k and it goes up 88% as opposed to say CA where the average price was 300k and it went up 66% the numbers are far different. Other than CA. your starting at such low values that these high percentage increases only amount to 20 to 30k in equity increases.

at least we agree on the Rust belt

Whats happen in the states is a true roller coaster. and when it comes to investing in certain areas its the herd mentality if you have a huge amount of out of area investors it will sqeu the true values.

Were I live in Oregon 90% of the single family homes are owner Occ. 200k buys you a home that rents for 1k. So we have little to no foriengers investing here. Apartments sell at 5 caps. However you will not find one apartment building boarded up like you will in each and every town east of the Rockies, and I do not care where it is Dallas, memphis , Kc, Chicago, detroit , harlem , DC, West coast is just far different demographically and I will leave it at that.

When you go to the south and mid west say towns like memphis were 60% of all single family houses are rentals it becomes a business and values are like apartment buildings, based on cap rates not what a family is willing to pay for them. If you invest in rental areas you wil never see appreciation and your expense's will be far more than you were told they would be.

I am not an expert on Texas by any means but I have done enough bizz to know that land is cheap there building cost are cheap and builders can and will build for just a little more than investors are paying for rentals. Homeowners will buy in these new construction subdivisions as oppossed to ones that are 50% rentals. And the houses have been rentals for 5  years plus its just simple logic and the fact. I am a home builder here in Oregon and Investor throughout the states along with a private money lending company. Anyone can google me Jay Hinrichs Portland Oregon.

It is well known knowledge in the development community ( of which I am ) in the states that builders in these areas where rents were high and cost of product was low ( texas florida and other areas) that got caught in 07 08 with high priced inventory they wholesaled their inventory to promoters who then sold to "cash flow investors and you have whole subdivisions full of rentals. Please correct me if I am wrong here and give me imperical data to disprove this. I know first hand I have lent money to untold hundreds of these developers and have first hand knowledge of how they sold out of there 05 and later inventory when the market turned south.