Condos Cheaper Than Cars (CNN Video)

[lilbuffet]

Found this interesting video on CNN regarding condos of decent quality being on sale right now anywhere from $20,000 to $50,000 in Flordia.

Check it out and would like to hear your thoughts.

http://www.cnn.com/video/#/video/living/20...?iref=allsearch

 

[Rickson9]

Already bought a few. It`s not really new or surprising. They cashflow well. I have outstanding (pls forgive the pun) shortsale offers to buy more.

In AZ 2 bed 2 bath condos are $80k in A areas, $40k in B, $20k for C. Approximately $25 to $100 per sq ft.

And things are only getting better...

http://finance.yahoo.com/news/Existing-hom...272584.html?x=0

 

[lilbuffet]

QUOTE (Rickson9 @ Aug 23 2010, 10:44 PM) Already bought a few. It`s not really new or surprising. They cashflow well. I have outstanding (pls forgive the pun) shortsale offers to buy more.

In AZ 2 bed 2 bath condos are $80k in A areas, $40k in B, $20k for C. Approximately $25 to $100 per sq ft.

And things are only getting better...

http://finance.yahoo.com/news/Existing-hom...272584.html?x=0

Oh wow, thats pretty interesting.....I would definitly be interested in speaking with you on this. I will PM you.

 

[Rickson9]

QUOTE (lilbuffet @ Aug 24 2010, 10:56 PM)
Oh wow, thats pretty interesting.....I would definitly be interested in speaking with you on this. I will PM you.




There's more information in this thread including my monthly costs per unit and other stuff:



http://myreinspace.com/public_forums/Real_Estate_Discussion/62-17378-Canadians_Snap_Up_US_Properties.html



Don't put too much weight in what I write. I've always invested in things that nobody else will touch - namely U.S. retail stocks and real estate...

 

[bizaro86]

QUOTE (Rickson9 @ Aug 24 2010, 09:22 PM)
There's more information in this thread including my monthly costs per unit and other stuff:



http://myreinspace.com/public_forums/Real_Estate_Discussion/62-17378-Canadians_Snap_Up_US_Properties.html



Don't put too much weight in what I write. I've always invested in things that nobody else will touch - namely U.S. retail stocks and real estate...






One thing I didn't think to ask in your other thread was: why Arizona and not Nevada, Florida, Calif, etc? Do you feel available cap rates are better?



Michael

 

[addbo]

QUOTE (bizaro86 @ Aug 24 2010, 10:24 PM) One thing I didn`t think to ask in your other thread was: why Arizona and not Nevada, Florida, Calif, etc? Do you feel available cap rates are better?

Michael

Speaking of Nevada. Last time I was down in Vegas I did sign up for the Foreclosure bus tour that one of the real estate firms uses to market the real estate down there... but it was for like a whole day of going around to various foreclosed places and I had only a limited time in Vegas... so I cancelled. It would be cool to own a place in Vegas even for just a vacation property.

I myself would be worried about the currency exchange risk... if you bought with canadian dollars... as the CDN dollar appreciates will you property become cashflow negative? (Since you would be paying your mortgage or whatever in CDN but getting rent in USD) I guess it`s not a huge worry about 30 to 50K... still I`m rather conservative and like Canada =) (And so much extra homework just to get to the same level of knowledge to be comfortable investing in another country... tax, laws, exceptions)

 

[Rickson9]

QUOTE (bizaro86 @ Aug 25 2010, 12:24 AM) One thing I didn`t think to ask in your other thread was: why Arizona and not Nevada, Florida, Calif, etc? Do you feel available cap rates are better?

Michael

Good question Michael.

For Florida the homestead tax didn`t really bug me as much as other Canadians. Mainly I just didn`t want to deal with hurricane insurance. It eats into the cashflow.

I researched Nevada and found it challenging to find a good deal that wasn`t in an area with crime.

California I never looked at. No reason there.

Some of my friends mention currency risk, and if I had a short-term time horizon I would see how that might be a valid concern. However, due to my age I still have a time horizon of a few decades so the exchange was never an issue for me. For all I know the USD could just as well strengthen against the CAD over the next 30 years. I also don`t worry about things that I can`t control. My brain barely has enough horsepower to think about things that I can control.

Some individuals feel that I`m being silly for buying US retail and RE. They may end up being right...

 

[Rickson9]

QUOTE (addbo @ Aug 25 2010, 12:40 AM) I myself would be worried about the currency exchange risk... if you bought with canadian dollars... as the CDN dollar appreciates will you property become cashflow negative?

No. If the CAD appreciates the only thing that will happen is to push my break-even point further out. Currently I`ve paid approximately 9x annual net rent for my properties. If the CAD appreciates I will just need to collect more rent in USD to make up the difference.

You bring up an interesting comment about currency exchange risk - citing risk of losing out if the CAD appreciates. All coins have 2 sides which means that there should be a risk associated with the CAD moving in the other direction...

 

[KevinSolomon]

Never let the currency tail wag the investment puppy.



PS: OP, fantastic video. Blast from the (amazing) past!