I'm thinking to buy a very cheap foreclosured property: Any tips?

[italiandragon]

We all know about renovations costs or bad location such Detroit.

But, since I will never be able to buy inflated property in Australia , I'm really thinking to buy something very cheap in the USA.

There are decent properties for less than $10,000 in many States but what do I need to know since I never bought one and am not familiar with the American rules?

Can I do this by distance maybe paying a lawyer to act on my behalf as long as it does not costs me too much?

Thanks

---------- Post added 10-07-2009 at 12:46 AM ---------- Previous post was 10-06-2009 at 11:35 PM ----------

Like this condo for example:

http://orlando.condo.com/Condo-For-...N-PALMS-CONDO_914_1-Bedroom_1-Bathroom_554344

it's $20,000 but its so good, or not?

 

[Ross]

You would have a hell of a time trying to sell that for more than $20k, even in a good economy...

That kitchen is smaller than my closet... actually smaller than most peoples closets.

 

[italiandragon]

You would have a hell of a time trying to sell that for more than $20k, even in a good economy...

That kitchen is smaller than my closet... actually smaller than most peoples closets.

Well my point of view is different since here in Australia despite you think it's small, here would cost not less than $100,000 even if was in the middle of nowhere simply because they are crazy here and the housing bubble did not burst at all.

Any other opinion, advice, tips on foreclosures?

Anyone? Cheers

 

[Ross]

Well my point of view is different since here in Australia despite you think it's small, here would cost not less than $100,000 even if was in the middle of nowhere simply because they are crazy here and the housing bubble did not burst at all.

Any other opinion, advice, tips on foreclosures?

Anyone? Cheers

That was my point. It is here and not there. To actually get a property that is even worth investing in you would have to look near the 100k+ range. Even then the margins of flipping the property or holding on to it and then selling would only generate a small profit if actually even sold.

 

[Corey]

educate yourself...

money in property is made in reselling...

there are numerous possibilities in Australia

what State do you live in?

Cheers
Corey

 

[liquidcherry]

House in California, 25k



Liquid

 

[Greg]

I work for a company that flips houses throughout Florida. It is always the unforeseen things that ruins the budget...Plumbing, mold growth, leaky roofs, etc. Most of the foreclosed properties that we deal with have no electricity or water when we take them over so it is very difficult to ascertain the working order of the plumbing, air conditioning or other things. I just completed a job in Orlando last week where there was 90+ degree temperatures outside and no air conditioning inside.

Always look for properties that need the minimum amount of work for the greatest return. I watch the programs on TV that show these $100,000+ budgets and I am amazed. Most of our properties are in the $5,000-$15,000 budget range. Ideally it is nice if we can clean the hell out of the property, paint it, paint the garage walls and floor (it just makes a huge difference), install new carpet or tile and pressure wash the exterior.



Good Luck with your endeavor!

 

[Moore123]

You know it's up to you to choose but you should remember that if your property is cheap enough, it's usually terrible. I know from my own experience when i bought a cheap condo and it took months to make look decent. That's why it's better for you to choose smth more expensive.

 

[ComKid]

I agree. It is better to find a $400,000 finished house for $250,000 that needs no work than it is to find a 150,000 house for 100,000 that needs $30,000 of work, upgrades or finishing. Problem is knowing the true value in this market.

There are deals out there but you need to be prepared to hold for a few years possibly to see best return. I am interested in a house right now that was appraised in early 2007, before the U.S. mortgage fiasco, at $240,000. Just recently it was re appraised at $170,000. I have negotiated the price down to $120,000. Now with 15% down and a first time home owners rebate of up to $8,000 (congress is considering upping that to $15,000 in near future).... I am working to get it out the door for $105,000 or less if possible.
It needs remodeling and upgrades. Nothing has been done to it since it was built in 1966. I may have to pour close to $35,000 into it in the next few years to get it conditioned for top resale value. Nothing major except a new deck right now but the interior and exterior need overhauling out of That 70's Show or the lovely Brady's era. It's actually like a 60's-70's time capsule. Pretty neat actually....... but not with the times.

 

[kev]

Why are these properties so cheap?

I live in area where you can't get a tiny 1 bedroomed flat for less than £100,000 :lol:

 

[ComKid]

There are many rental properties taking a hurting now. Landlords are not making the payments and losing big time. Money is sarce right now with 7-10 million unemployed and no light in sight yet and people are liquidating property assets...just like what's happening with domain names. Properties are flooding the market and prices will drop some because of it. The ones that can hold these assets may have taken a loss now but look to come out ahead at the end..... or they may be forced to sell low now.

The prices have fallen sharply here in many areas with real estate. At first it was only select areas or states taking the brunt of things but now it is more scattered with everyone adjusting their lifestyles to meet their incomes and needs.

There is a danger in the market even now with the stock market gaining 5 figure territory. I don't think we have hit bottom yet like many are claiming. Everyone knows the unemployment rate is expected to reach 10% by next year with many states now looking at 15-20% already.

The rollorcoaster is still inching towards the top of the next summit. Problem now is with so many unemployed there is a hole being plugged right now that reflects our lack of savings and our debt accumulation still and financial burdens on alot of people right now and it is anyones guess what will happen when the government pulls it's finger out of that hole. Properties are taking a hit now on prices with many losing thousands if not 10's of thousands of dollars in built equity. We are still seeing a number of forclosures happening here but is now starting to level a bit.

Little tweaks to things here and there won't get the ball rolling faster the other way...something bigger needs to happen to assure people their losses will not be in vain. Like a bigger tax credit on home purchases, or a bit tighter banking regulations including capping bank rates and fees or eliminating certain ones to let people know they can trust banks again. I sure don't and it is tough trying to trust your own governments handling of our tax dollars either bailout after bailout. How does a company like GM (Formally General Motors but since the government buy out it's "Government Motors" now) now just start to liquidate it's brands like Pontiac and Saturn AFTER a government bailout? Is this a under desk favor or what?
So anyways....it is a great time to get into gear for property investing and many are doing just that. It is a buyers market.....only, if the market doesn't get worse.

 

[italiandragon]

T

That was my point. It is here and not there. To actually get a property that is even worth investing in you would have to look near the 100k+ range. Even then the margins of flipping the property or holding on to it and then selling would only generate a small profit if actually even sold.

I understand that but what about buying to rent it?
That's how many people make money, the problem of course is to see if you find good tenants and they pay rent but then I don't know how easy is to evict tenants in the USA if they do not pay.

---------- Post added at 02:12 PM ---------- Previous post was at 02:08 PM ----------

educate yourself...

money in property is made in reselling...

there are numerous possibilities in Australia

what State do you live in?

Cheers
Corey

Hi Corey,

I'm currently in QLD, but lived in SA and VIC before.

I think that despite strong immigration, housing shortage and all other excuses, that our real estate will take a huge hit and anyway my finances can't afford such prices here.

 

[barefoottech]

I'm currently in QLD, but lived in SA and VIC before.

Where in qld you live.
On russell island Where I live land starts at under $40k and houses Under $150K

 

[James]

You can EASILY get a house house for under 50k AUS here. Doesn't mean its at all desirable or rentable.

Money is made in reselling or going all out and blowing afew $$$$$$$$$$$$ and getting a renter into a NICE house so they can pay it off for you. Great tax schemes if you're losing back on it aswell + first home owners grant

Good advantage of buying in the USA - you can fly their any time for long amounts of time and just claim that you're inspecting your house.

 

[Warner]

Cheap houses are unreliable. There may be various hidden problems like leaking roofs or terrible cold in winter. Ot location can be very criminal. Find everything about the place.

 

[italiandragon]

Where in qld you live.
On russell island Where I live land starts at under $40k and houses Under $150K

Cairns, then moved to Townsville but was houseless the last 5 weeks so I`m currently with friends in Hobart.

Russell Island is just too isolated, you need the boat or the ferry to go to do decent shopping...:blink:

 

[Corey]

the time to buy in Oz is NOW...property prices are on the rise
demand is high

interest rates too are on the increase....in a short time the market will be at it's PEAK (higher prices)

all the best

Cheers
Corey

 

[italiandragon]

the time to buy in Oz is NOW...property prices are on the rise
demand is high

interest rates too are on the increase....in a short time the market will be at it's PEAK (higher prices)

all the best

Cheers
Corey

Corey, I heard those things a million times by the so called "spruikers" but maybe you should educate yourself about WHAT is AFFORDABILITY and MEDIAN MULTIPLES.

Have a look here:

http://www.demographia.com/dhi.pdf

And by the way, the topic of this thread is the USA foreclosure market, not the "Australian Bubble over inflated one".

Cheers

 

[Corey]

Corey, I heard those things a million times by the so called "spruikers" but maybe you should educate yourself about WHAT is AFFORDABILITY and MEDIAN MULTIPLES.

Have a look here:

http://www.demographia.com/dhi.pdf

And by the way, the topic of this thread is the USA foreclosure market, not the "Australian Bubble over inflated one".

Cheers

Here are a few suggestions for you

Australian Market Information Herron Todd White - Market Information Downloads

US Market Information Real Estate Listings, Homes for Sale and Rental Property Listings – REALTOR.com®

btw my education in the property market is Full Licensed Real Estate Agent and Final Year Property Valuation Student.

Cheers

Corey