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British Btl Investors Tour Us And Spain

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GuardianArticle

Do they never learn???

British investors unable to afford buy-to-let properties in the UK are buying ultra-cheap repossessed US homes in a bid to profit from rent guarantee schemes and possible long-term capital appreciation when the American economy recovers.

The homes are selling for as little as £20,000 in cities such as Detroit, where the combination of long-term unemployment and the credit crunch has led to house price falls of 70% since 2006, with few signs of any imminent recovery.

"We had money in premium bonds and savings in this country, getting almost no returns, and we couldn't afford to buy an investment property here. Then we heard about buying in the US," says Lynn Duggan, a clinical co-ordinator from New Malden in Surrey.

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says Lynn Duggan, a clinical co-ordinator from New Malden in Surrey.

sounds like someone who is about to be made redundant

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Detroit?

Ouch. It is totally God forsaken. Some people will never learn. Fools. Money.

I'm just wondering how large a sector of society this is? IE they believe that it's normal for house prices to keep rising as per the boom years, and that the last 2 years have just been a temporary hiccup?

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there was a thread on this the other day.

Assetz is the firm...famous for its appearances on watchdog and other consumer programs.

Stuart Law is the man.

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On a valuation basis the US market is now fairly priced. You can knock the BTL investor but you cant knock the fundamentals of the US market. Its down and seriously so on a price to earnings or yield basis.

However markets usually undershoot and the decent analyst out there either say it is a buy (Marc Faber) or has another 10-15% to come off (Jeremy Grantham). I would go with the latter, nearly bottomed out but not quite.

I would like to buy in the US but the biggest issue is owning a depreciating dollar asset over the longer term.

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On a valuation basis the US market is now fairly priced. You can knock the BTL investor but you cant knock the fundamentals of the US market. Its down and seriously so on a price to earnings or yield basis.

However markets usually undershoot and the decent analyst out there either say it is a buy (Marc Faber) or has another 10-15% to come off (Jeremy Grantham). I would go with the latter, nearly bottomed out but not quite.

I would like to buy in the US but the biggest issue is owning a depreciating dollar asset over the longer term.

with US banks awash with cash, using your logic the locals would be flooding into the market themselves.

they arent.

Now think a bit more about what you are saying.

Maybe you should look nearer home...say NI for example.

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I'm just wondering how large a sector of society this is? IE they believe that it's normal for house prices to keep rising as per the boom years, and that the last 2 years have just been a temporary hiccup?

In Detroit at least, house prices have crashed, are practically worthless and will never regain in value. Businesses have long gone, will never return to its past values and the city (public sector) is bankrupt. The only ones making any money are the drug dealers and pimps. Go to Detroit if you want to get robbed or r*ped.

People who believe in ever rising HPI deserve to have their lives destroyed. I have lost any sympathy for them long ago. Even if the entire UK crashes and burns, some folk will crash and burn much harder than others. Almost everyone I know has some stake in property. Luckily, the millions they made went straight back into property so most stand to lose everything they have and everything they ever gained in the boom.

Edited by Earthling10

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with US banks awash with cash, using your logic the locals would be flooding into the market themselves.

The average joe never times the bottom of any market correctly.

Just read all the posters on this site to see that.

Likewise on a valuation basis NI is still overpriced.

The problem with you ubers is that all you ever look at is price. Valuation is a concept you just can't grasp. Would you like me to explain the yield cycle to ya?!

Edited by ringledman

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The average joe never times the bottom of any market correctly.

Just read all the posters on this site to see that.

Likewise on a valuation basis NI is still overpriced.

The problem with you ubers is that all you ever look at is price. Valuation is a concept you just can't grasp. Would you like me to explain the yield cycle to ya?!

fine, knock yourself out.

all you need are customers...

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It could be interesting to invest in US property. However, the way that woman has gone about it is completely stupid.

She probably knows nothing about the area, nothing about US law, nothing about the house she has bought (apart from a picture which is not legally binding), nothing about the tenants she is supposedly getting, nothing about the agents she is using.

She has been told a nice "no lose" story about huge yields guaranteed by the US government, but in reality, she will have been ripped off by conmen who have taken her money and she will never see it again.

Edited by blackgoose

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The average joe never times the bottom of any market correctly.

Just read all the posters on this site to see that.

Likewise on a valuation basis NI is still overpriced.

The problem with you ubers is that all you ever look at is price. Valuation is a concept you just can't grasp. Would you like me to explain the yield cycle to ya?!

I would avoid investing in US property simply because I don't really understand america or the local property market in question; and additionally the cost of checking these things out myself (must surely involve a bit of travel) would add costs that native competitors would not need to sustain; I just don't see what possible advantage I could lever in this market.

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...the way that woman has gone about it is completely stupid.

She probably knows nothing about the area, nothing about US law, nothing about the house she has bought (apart from a picture which is not legally binding), nothing about the tenants she is supposedly getting, nothing about the agents she is using.

She has been told a nice "no lose" story about huge yields guaranteed by the US government, but in reality, she will have been ripped off by conmen who have taken her money and she will never see it again.

she is a baby boomer in a UK public sector non job

what do you expect, genius?

says Lynn Duggan, a clinical co-ordinator from New Malden in Surrey.

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If the prices are that cheap then it's for a reason.

With such low interest rates, local people with would be bidding properties such as these Detroit ones higher if there was any semblance of an easy yield.

£20k ain't a lot of money so it's not even as if this is an issue of people with liquid cash being able to snap up bargains.

I bet this happens when every bubble pops - the benefactors of the bubble looking further afield for their easy money. It ain't gonna happen love!

Edited by Kyoto

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It could be interesting to invest in US property. However, the way that woman has gone about it is completely stupid.

She probably knows nothing about the area, nothing about US law, nothing about the house she has bought (apart from a picture which is not legally binding), nothing about the tenants she is supposedly getting, nothing about the agents she is using.

She has been told a nice "no lose" story about huge yields guaranteed by the US government, but in reality, she will have been ripped off by conmen who have taken her money and she will never see it again.

indeed, its the same old Assetz story..

as seen on TV with people losing their shirts in the UK boom on housing.

for Mr Law, its another day, another mug.

and those valuations........

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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