3 bed villa for £8k??

jozvaldo

How does this work then - I know our friends across the pond are in a mess right now but I came across the following website earlier that lists hundreds of properties with 1 as an example:-


Key selling points

• Low Cost Investment Opportunity
• High Yield Monthly Rental Income
• Income from Day 1
• Home Inspection completed
• Attorney at Law (Lawyer) Assigned

SECURED PRICE: $ 17,000 / £ 8,717
GROSS MONTHLY RENTAL INCOME: £ 297
NET MONTHLY RENTAL INCOME: £ 215
TOTAL COST TO BUY THIS PROPERTY FREEHOLD INCLUDING ALL PURCHASE COSTS AND FEES: £ 10,844
This is a 3 Bedroom detached home measuring 1,320 square feet of build on a plot size of 3,390 square feet. Located in Buffalo City. Close to bus lines, schools and shopping areas. The Property consists of 3 good sized bedrooms, bathroom, lounge, Dining Room a large eat-in kitchen, nicely lanscaped gardens and private driveway for parking leading to a double garage, this property is rented at $580 a month gross rental return.
This is an excellent Investment Opportunity to own a 3 Bedroom Detached House in Buffalo City, this property is rented to excellent tenants who look after the property as their own.
The Property boasts having recent updates of a new hot water tank and furnace.
Monthly Expenses include:
House Taxes of $56 / £29
Rental Management Fee of $75 / £38
Utilities / Water Charge of $30 / £15
THIS WILL GIVE YOU A NET MONTHLY RENTAL INCOME OF: £215
NET INCOME PER ANNUM OF: £2,580
Our Professional Property Rental Management Company in Buffalo, Western New York will manage your property and tenants and will collect your rent each month.
All purchase paperwork and completion made through Attorney at Law ensuring complete legal transaction.
Location: Buffalo City, Western New York State
The City of Buffalo lies on the Niagara River near the eastern end of Lake Erie. Buffalo is often referred to as the Queen City because it´s the second largest in New York State behind New York City.
This is an area where property prices are currently low and properties to rent are in high demand, where tenants like to stay in the same property for years, often for life! This is an area where savvy investors from all over the world have invested into this cheap property market and have been reaping the benefits from the high yield rental income.
We bring to you the whole package:

1. Low Priced Property with High Yield Rental Income
2. Already rented to Tenants
3. Professional Property Rental Management Company
4. Home Inspection Completed
5. Attorney at Law
6. Complete Personal Service and Supervision of

If it is that good and that easy to make a guaranteed profit each month - why aren't all of the americans doing it???

not sure if I'm allowed to post the website?? (remove if not)

http://usa.themovechannel.com/property/Villa/CPI1029B/483875/details/

Please let me know your thoughts - I am very intrigued!!!

chewmylegoff

my thoughts? 25% return... if it sounds too good to be true, it probably is...

i expect it's a falling down hell hole with no prospect of being rented out.

Pobby

If it`s so cheap then why don`t the tenants buy it?

jozvaldo

this is the thing - if you look at the website there are literally tonnes of these properties and some of them are guaranteeing a rental income?

this is what I can't get my head round?

GDB2222

One thought is the same as the one you've had: If it's too good to be true it probably is.

Other possible issues are:

Liability - are landlords liable for accidents to tenants?

Is it simply a scam? (I suspect not a total scam, as I have seen lots of other high-yield property in the US. However, the tenants may move out, leaving you with a deteriorating property and heavy outgoings for city taxes and the like.)

Repairs - all that wood will need loads of maintenance.

Personally, i wouldn't touch it, simply because the hassle factor of dealing with a property 3000 miles away is not worth it. The yield is good, though, and if this were a £100k property yielding £25k a year, I'd be much more interested - as would lots of Americans probably.

PeteHi

:rotfl:

have you looked at the internal pics? Id say its overpriced. No doubt a rundown smackden in a hell-hole of an area.

I wouldnt touch it with someone elses cash, let alone my own.

westv

That part of Buffalo is probably sh*te - or more sh*te than the rest of Buffalo.

GDB2222

Have a look here:
http://buffalo.areaconnect.com/crime1.htm

This might explain things a bit.

Also this:

http://www.epa.gov/region07/news_events/newsreleases/archive/n020499.htm

poppy10_2

Hey, you can buy houses for as little as $1 in the US at the moment:

http://www.dailymail.co.uk/news/worldnews/article-1044973/House-sells-just-50-PENCE-U-S-property-market-hits-time-low.html

lincroft1710

About 25 yrs ago went to see friends who lived in USA. Picked us up at airport and drove us back to their home 100 miles away. On freeway as we circled outskirts of a city, they suddenly said "lock your doors". Yes - you've guessed we were in BUFFALO !!

GDB2222

Nice find!

The identity of the buyer has not yet been disclosed as the deal is yet to be finalised but the agent revealed that the buyer agreed to pay the full list price of 50p, and planned to pay cash.

Dollar property sales are the financial hangover from the foreclosure crisis as lenders that made loans to unqualified buyers during the height of the subprime market now find themselves the owners of whole neighborhoods of vacant, deteriorating homes.