USA property -am I missing something?

rockitup

atush wrote: »

Vegas is only 1% behind in that race.

I am doing a road trip now in the USA, just spent some time in Vegas for first time since October/November 2008 when the financial crisis was taking hold.

I thought things looked bad then and was expecting a further decline but not as much as I noticed on this trip. So many shops, restaurants, petrol stations etc closed up, part-built housing communities abandoned. I even spoke to one guy who had bought a new home in one of these communities and he had major delays in getting utilities supplied because the builder owed so much money to the Utility companies. The homeowner had to sue to get supplies started and the other 5 buyers till have no utilities yet, just generators and numerous large bottles of water. Builder went gone bust 2 years ago leaving empty new houses in a few locations.

Las Vegas strip does not have endless traffic jams now, homeless/jobless people seem to gather at traffic lights, supermarkets etc begging and this is not restricted to LV and surrounding areas. Makes you glad to have NHS and GP's in the UK instead of paying $300 upwards for very minor treatment in the US.

I loved all my visits to the US over the last 20 years but even with the ultra-low house prices (£50k for new massive single-storey in S. Arizona with all kitchen appliances), I would be thinking twice about buying or settling there. Also went to a Futures & Forex Traders Expo there and it seemed visitor numbers were very much less than expected according to some of the Exhibitors.

As fwor posted, there are streetfuls of derelict houses there, and along with massive unemployment in some areas I think some areas will not improve for many years. Some of these properties can be had for just a few thousand dollars (mainly property tax owed). I would steer clear.

MoneyJuggler

rockitup wrote: »

I am doing a road trip now in the USA, just spent some time in Vegas for first time since October/November 2008 when the financial crisis was taking hold.

I thought things looked bad then and was expecting a further decline but not as much as I noticed on this trip. I would steer clear.

Wow, thank you for that post - I too didn't expect things to be as bad as you say, thank you, most insightful and useful.

jamesd

"One of the most fundamental times to invest in property is when prices are low and demand is high". That is not now, which is prices are low and demand is lower in troubled markets.

Watch out for property tax arrears - the buyer can be liable for them. A decade worth, say.

There are definitely some bargains around if you can afford the wait and the catches. But why not look at Bradford or other fairly cheap UK places instead?

rockitup

jamesd wrote: »

"One of the most fundamental times to invest in property is when prices are low and demand is high". That is not now, which is prices are low and demand is lower in troubled markets.

Watch out for property tax arrears - the buyer can be liable for them. A decade worth, say.

Yes, there were some brand new subdivisions flattened in the High Desert area of California (I think heading up from LA and Barstow up towards Stateline), this was about 2 years ago and was due to property taxes mounting up for the developers and no buyers for the houses.

I may take a look round Stateline later this week and let you know, there is a massive oversupply of housing here now and there was a report before mentioning about 25+ years supply of unsold housing stock in some areas. Probably bargains if you want to live there but personally I would not go down the investment property route.

atush

just arrived at my FL home. I have one because I am from the US and it is home to me, and I rent it when I am not using it. But don't 'make' money on it just cover some running costs.

The local pizza take out pizza joint has now closed, the major supermarket that was the main event in that particular SC closed down almost 2 years ago now and I guess the rot is spreading. I think the Flooring place next door may be gone too- it was dark so I couldn't tell. Last time I was here, I noticed a few restaurant closures (but one new open as well).

Things are still tough, and this is holiday rea- not Detroit.