Is this the time to Buy American Property.

Mick

All depends on your comfort with risk. Sales are down again substantially, mortgage rates are low. Time to move in if you have the money and think properties are underpriced. Big question Mick is .... are they underpriced, right priced, or scary thought still overpriced? Estimate is there are a 1 mil. foreclosures a year coming for the next few years. Unemployment is still high. National and personal debt are still very high. Thirty percent of this years national budget is debt financed. How long can that go on? Begs the question, is there enough buying power left to expand the economy and help housing recover or will it stay in the doldrums for years?

Then there is always the fundamental question, is the national economy still the engine it once was? Are American workers well educated? Answer seems to be not really. Does the U.S still have a strong manufacturing base? Answer, not like the old days. Does the financial system have the capacity to efficiently finance growth? Answer, not certain. Transparency is still better than most. Ability to quickly retrench and correct from past mistakes still there. But so is a disturbing preoccupation with short term investment thinking and financial manipulation.

Tough call Mick.

Simple - Decide if it is for pleasure or investment. For the first, good opportunities, even if you're converting weak Pounds to Dollars. For the latter, roll the dice....

Don't forget to factor in the insurability costs - hurricane damage might be covered, flooding (even storm surge related) not. Natural catastrophe protection varies from state to state, so you need to be sure that you take nothing for granted.

Then there is the sustainability of cheap flights, will it always be cheap to get to the location where you buy? Are you always going to want to beat your body up flying long haul?

Friends with property in Florida seem to love it and have not regretted their investment, but I can't say that it appeals to me. I don't play golf and it's too flat.

If it's just for investment, then as Timster says you might as well just roll the dice.

If you had purchased some cases of Château Lafite Rothschild 2009 you would have made a slightly better return:

Release price: €5400 per dozen

Currently trading: €16,000 - €17,000 per dozen

It was released on the 30th June. This year. So the return has been 300%+, in nine weeks.

Cheers!

Chaps

Let me explain my circumstances. I am 61 years of age and have recently retired and enjoy going around the world. I live in the UK and I have a second home in Spain in which I am domicile for about 20/24 weeks a year.

I believe that I can only spend 3 months in America on a Visa, so in effect that means if I were to buy a shack im America, I would be living abroad for about 8 month of the year which is how my wife and I like it. This would be our idea of heaven.

There are, however, some obvious downsides, these being :-

a) at the age of 61, I am running out of time for long term investments.

b) there will be expenses such as furnishings, car hire, insurances (property and medical) etc etc.

c) Florida seems to be a place where buildings are cheaply constructed out of wood and they seem to get blown down by high winds every so often. The last time I went to Florida in 2005, the place had been devestated by gales.

My prime motivation is for pleasure rather than investment but at the same time I do not want to waste my childrens inheritance.

Are there any places better than Florida for a second home, Boston spring to mind, it would be nice to spend the autumn (fall) up there and it is nearer to the action than Florida.

Regards

Mick

I live in South Florida and am still holding out. I might at some point in time take a more serious look at apartments close to Ft.Lauderdale or Miami Beach. The situation is still dire and you should be careful as you approach the market. You have to consider as well maintenance and property taxes, especially if you can't claim your property as homestead.

Florida vs. Boston - different worlds. Do want high heat and humidity? Do you want to have to remove your dishes from the dishwasher right after the cycle completes so as to prevent mold from growing on your dishes? If you do, Florida may be the place for you.

Boston and New England are way, way different.

I don't think either is ideal for the Summer. High culture hasn't reached Florida yet. Boston is a world-class cultural center (museums, music, theater, literature, etc.)

You say you want pleasure - what does pleasure consist of for you?

Based on what I read today, we have not seen the worst here.
I would suggest Las Vegas. One in every seventeen homes are being foreclosed.
Cheap buy but still may not be the bottom price.

What is there in Las Vegas?

Worth reading this first.

Chaps

I received an email last night from one of my friends who is in Florida at the moment.

The Brits tend to favour Florida because rightly or wrongly it as the reputation back here of being the place where Americans like to go for their retirement.

My friend seems to be filled with a sense of foreboding on the place. The place is ticking over rather than vibrant and businesses are struggling to remain open.

It seems (logically) that the fall in property prices is set to continue, so possibly holding back may be the answer.

Unfortunately at 61, patience is an even harder virtue.

Regards

Mick

Not sure what budget / sort of property you have in mind MIck for your maximum stay of 90 days / year but the western states are full of scenery in the form of some of the greatest of the State Parks and of course some major population centers including LA ( yuuuk ) and SF ( great ).

Arizona is also a major retirement state and Northern Arizona not all a baking desert. Utah is within reach and Lake powell is a gorgeous backdrop for flatboat holidays. You can pop into Colorado fairly easily from there aswell. Of course if you like it hot and dry there is Phoenix which is another of the retirement capitals with more doctors per square mile than most places due to the large patient market. Locals are sometimes known as 'wrinklies' due to drying out like prunes in the climate. Winter is actually very pleseant there.

regards
geoff

A friend went to work on Florida, Miami on an 18 month contract, a few years ago for a very specific reason. He had a hip replacement, and the cold damp winters in the UK, Hull specifically, made the hip 'gnaw' with a dull but consistent pain.

The warmth of Florida eased that.

It might be a minor point, but if you are coming to retirement age and the there might be the chance that health, and specifically healing in a warm environment is beneficial, Florida may have that appeal for you.

That said, your Spanish residence may fit the bill too, but I thought it might be worth posting of my friends experience.

Mick, you might do well to look at some of the smaller SE Coastal cities such as Charelston, SC or Savannah, GA. It's worth bearing in mind that all of the SE Seaboard is in the hurricane zone and maintaining a property from afar will have its challenges.

If you're only going to be there 90 days a year, and if those days are in the summer months, you might want to consider a place like Cape Cod.

My Brother lives in Florida, outside Orlando and yes worse is on the horizon is the view. Not very different from here really!

Buying in florida has the advantage that there is a holiday residential/let market to people like you Mick. Brits rather than americans. If you are going to leave it empty for 9 months then this worth considering. I appreciate the implications of rental and you may not wish to but it is always being in the background as an option.

So worth buying with this in mind maybe.

james

Consider finding another Brit who can't make the trip this year, renting his place for a couple of months and then deciding based on a few months of first-hand experience.

Have you looked at Costa Rica or Panama?

quote:

Originally posted by Peter Dinh:
What is there in Las Vegas?

Vegas has the heat without the humidity. Plenty retirement aged resorts and communities. Close to california and arizona.
Vegas is also the restaurant capital for the states. Better than new york,chicago.and los angel.
The water tastes a hell of alot better in vegas. I almost gag every time i am in florida.
Easier to get around vegas. People actually know how to drive in vegas.
Vegas is still growing with more resorts being built. Even in this economy.
i see the only advantage as an obvious one. That florida is is on the east coast. You never really see folks from europe at disneyland.
marc

Whenever I am asked "is it a good time to invest/buy", I always seek to understand what market insight I might hold. Why would I presume to know more than a market which continues to determine the price of assets? In the absence of detailed and extraordinary research, I couldn't make this presumption. It therefore comes down to private valuation. Is there some factor that would lead me to place a higher value on an asset than its price? Is it an asset with a special appeal to the prospective buyer? If not, it is unlikley that a "good deal" (on average; we can all be lucky from time to to time) can be determined to exist. Short answer: It is a good time to buy if you determine that the price is less than the value TO YOU. If you love it - buy it. Don't try to beat the market. Seriously.

Chaps

I think that this is looking a non starter. Too many negatives and not enough sexy positives.

I have a meeting with next week a small group of men whom I have lunch with on a periodic basis. The aim of the group is to advise each other in financial matters and to suggest caution or or an action plan as appropriate.

The chap who is in Florida at present will be back home next week and we will discuss it then.

Regards

Mick

quote:

Originally posted by Mick Parry:
Chaps

I think that this is looking a non starter. Too many negatives and not enough sexy positives.

I have a meeting with next week a small group of men whom I have lunch with on a periodic basis. The aim of the group is to advise each other in financial matters and to suggest caution or or an action plan as appropriate.

The chap who is in Florida at present will be back home next week and we will discuss it then.

Regards

Mick

Illuminati?

Bob

The "club" is just an informal group of 6 and we nicknamed ourselves the "Men of England". We formed about 20 years ago and are roughly in the same line of business and we originally used it to network to identify career opportunities for self advancement.

Most of us have since moved onto semi retirement and the focus now is how best to invest our assets etc etc.

We tend to have a long lazy lunch and have a bloody good moan about the rest of the world.

Regards

Mick

GIven a choice - I would opt for Santa Fe in New Mexico - downsides is the cost of living there. A good retirement place is Tucson area however be prepared to stay in the aircon in July August until you get used to it.

Actually Mick you can stay in the US on a Visa waiver for a maximum of three months and must not return for another three months so you could probable arrange to be in the US for 6 months a year - however check with the US Embassy web site.

Best thing is to arrange for an offspring to become a US citizen and then they can have their parents in the US with a relatively quick allocation of a Green Card.

Arizona is relatively safe from quakes, gets the odd flash flood and forest fire but overall one of the less naturally attacked States

Mick do yourself a favor, don't buy! You could come over and lease a place every year and not worry about insurance or building problems. State Farm has pulled out of Florida because of the future problems.

You could choose a different state every time, why tie yourself to one locale? If perchance things get tight you're not stuck to a mortgage on a declining economy.

Don't forget Lake George and the north east area, desert areas can be fab and CA has mtns, beaches and everything in between North to South.

Interesting documentary on tonight called Paradise Lost, about Brits chasing the dream by going to Florida and having very mixed fortunes to say the least. One couple appeared not to have made full provision for health care costs, another had a moderately successful business but were treated shoddily by the US embassy in London when they had problems having their visa renewed, another bought a business from the UK apparently without full evidence of annual turnover. They're now facing financial ruin.
Just further evidence, if any were needed, that you don't take s step like that lightly.

quote:

Originally posted by Derek Wright:
GIven a choice - I would opt for Santa Fe in New Mexico - downsides is the cost of living there. A good retirement place is Tucson area however be prepared to stay in the aircon in July August until you get used to it.

Actually Mick you can stay in the US on a Visa waiver for a maximum of three months and must not return for another three months so you could probable arrange to be in the US for 6 months a year - however check with the US Embassy web site.

Best thing is to arrange for an offspring to become a US citizen and then they can have their parents in the US with a relatively quick allocation of a Green Card.

Arizona is relatively safe from quakes, gets the odd flash flood and forest fire but overall one of the less naturally attacked States

Both areas you mention are the drug trafficking distribution capitals for the states. New mexico has has worse gangs than los angel.