Quote:
Originally Posted by FishTaco
I'm currently looking to invest around 15-20k to buy a house in US. From what I've seen, that can get you a fixer upper house in the Miami area. I know that there a lot of scams though so I'm worried about making a purchase without going through a broker especially because this would be my first purchase and it's on the other side of the states. What's your opinion on Miami? Do you know of any good deals in a nice warm climate? I would prefer living in a big city where the economy is more stable. Seems like SoCal is very pricey and not realistic for my price range though. Do you have any insight?
Cheers
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i'll give you a PM, but generally speaking I don't like Miami for the following reasons:
Risk of natural disasters
High unemployment (vs. national average)
You can't easily get to your property, if you wanted to (its an expensive & long flight)
As for $15-20K places, you're probably asking for more of a headache than anything - i come across places for $50K or so, and i wouldn't touch them with a 10 foot pole, older places, who knows what structural problems (maybe none, but risk is definitely there - and i ALWAYS get full inspections and reports done on any house i buy, the best $400 to spend on a house before closing). you will generally get a good yield from a lower end property, but your capital appreciation is limited and you run the risk of big expenditures being required (an AC unit is $5K alone - they WILL go on older places)
While not offered by many, and not easily available, you can always consider getting an investment mortgage on a place, I have been offered 65% LTV mortgages at 7%, 10 yr fixed, 30 yr amort - not 'cheap' money, but this is an investment mortgage for a non resident.
also think about how you will hold this property & the tax consequences - this HAS to be a first thought, not an after thought.
As for those ads you see in the 24HR paper, I won't say they're a scam, but this is what they are - they will sell you a property - whether it is a great investment property or not doesn't really matter, as they make their money when they sell a property - they sell to you, make their $$ then walk away - yes it could work great, but equally it can be a dud... then what, you're left holding a property and don't have any assistance - who manages it (not too hard to find a management company, hard to find a good one), what about tax liabilities, what about actually getting your money, what if something goes wrong and you get sued (Americans LOVE to sue)... this is why I work with money investors and enter into relationships with them long term, I only make money if the investment makes money (thus I have incentive to get the best places, have them managed well, manage risks and taxes)
You see A LOT of junk information out there, and a lot of it angers me, as I am someone with experience and education is investment/corporate tax planning and structuring cross border - so much misinformation out there - so my main advice - BE CAREFUL!