‘Perfect storm’ for buying in the USA

Anybody planning on selling high and buying low?  Financial Post says its the perfect time to buy some property down south if you’re a Canadian.

“It’s hard to pick the bottom” says Brian Wruk, a partner in Transition Financial, a cross-border planning firm with offices Arizona. He’s telling clients not to rush to buy, but to have their Canadian dollars converted to U.S. dollars now — at today’s sweet rates — if they’re even thinking of buying.

“You need to get that currency risk out of the picture — get Canadian dollars into U.S. dollars now, so you’re ready to move.”

In Phoenix, Mr. Andersen estimates that about 70% of the mortgages are underwater, which means the amount outstanding on the loan is actually greater than the current value of the house. Competition for these units is fierce and almost everything is bought ‘‘as is’’ and most likely with cash. There are about 40,000 listings in the area, up from a more typical 10,000 units, but still banks generally won’t negotiate the price so most deals are done at list price or higher.

While Western Canadians often buy in Arizona and California, Eastern and Central Canadians favour Florida. And the housing situation is the same there.

“With prices like this it’s crazy not to buy,” says Diana Carter, an Ontario retiree who just had an offer accepted on a single-family house in Florida. Ms. Carter had spent four intense months looking at properties. “We looked at places for US$23,000 or US$24,000 but decided on something so much nicer for US$43,555.”

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Patiently Waiting
Member
Patiently Waiting

I notice some people are trying to revive RET. The damn thing is dead. Its a rancid corpse. Leave it alone. Obviously Ozzie likes it that way, and may even be the main troll.

jesse
Member

Does anyone know Phoenix well? Are the properties going for $50K or less in decent/convenient areas?

I found a hoity-toity area of Phoenix (Arcadia), not too far out, and here's what can be bought for $1MM. And it looks a bit overpriced, given it's been on the market for almost a year.

Phoenix also has uber-expensive properties too in Scottsdale, Paradise Valley, etc.

Dunno about the $50K stuff but I'd be careful.

asalvari1
Guest
asalvari1
not on topic but really good info: http://www.zerohedge.com/article/here-we-go-again… by Element on Tue, 03/15/2011 – 20:44 #1058068 Ok, this is my take, after studying the various official comments for the past 5 days (I have not been reading other views on this, just analysing the accumulating official BS); What we know about the radiation rises so far: What level is safe? (mSv = milli Severts) 2 mSv /year is the natural human annual background dosage. 0.02 mSv from the average x-ray 100 mSv (50 times a natural annual dose) can lead to cancer in humans. 11:00PM (AUST EST), Mar 14 2011- it emerged that the No.2 reactor had suddenly developed a serious internal leak and the reactor somehow drained its water completely (confirmed at 1:20AM) and it could not be refilled, and the fuel was 100% exposed. Whatever occurred caused the… Read more »
patriotz
Member
Active Member

“It’s hard to pick the bottom” says Brian Wruk, a partner in Transition Financial

True, but it's not so hard to pick a non-bottom.

The real Case-Shiller is now about the level of previous market tops prior to 2000. That is, US RE is still expensive by historical norms. Some markets such as Phoenix and Florida may be cheaper than that, but they have good reasons to be.

Boombust
Guest
Boombust

"Does anyone know Phoenix well? Are the properties going for $50K or less in decent/convenient areas?"

Many parts of Phoenix are DUMPY. Tonier areas like Scottsdale are nice, tho' And,other areas like Mesa and Tempe have some nice areas. If you're into old Geezers, try Sun City in the northern part.

Where are the party hats? Larry's site tells me we're at 20k PLUS for inventory!

He he…

registered
Member
registered

2 jesse Says: "I found a hoity-toity area of Phoenix (Arcadia), not too far out, and here’s what can be bought for $1MM."

That 'owner estimate' is still >30% higher than Zillow's – and 30% off the peak 2007 price – so I suspect local comparables are priced substantially lower.

specialfx3000
Member
specialfx3000

More bad news for local economy.

http://finance.yahoo.com/news/Canada-Bread-Close-

155 people affected as they will close their Delta bakery and expand their operations in Edmonton.

Renting
Guest
Renting

Does anyone know Phoenix well? Are the properties going for $50K or less in decent/convenient areas?

I had a relative buy a winter house in a suburb of Phoenix. An area like Langley or Surrey. They paid 130K for a decent 2000 ft house almost 1 year ago. The same house would sell for close to 500K in Langley. They rented the place furnished for $2600 per month when they were not using it. Probably what you would get for rent in a 500K furnished Langley house.

My guess is 50K doesn't get you much (lot value?) but then again 1.5 Million doesn't get you much on the westside of Vancouver.

paradox
Guest
paradox

Phoenix is a dump, maybe Scotsdale , but 50k wont get anything there. You can get decent houses with (nothing like the dumps in vancouver that sell for 1+ million) swimming pool in decent neighbourhoods in scotsdale but you will have to pay 300k and more. I personally dont fine phoenix or palm springs apealing for living there, too hot. California west coast is nice, especially san diego but houses although being much cheaper than here, are still expensive by historical standards.

It is an extremely good time to buy in th US if you are a us resident and can ge a 30 year fixed morgage – If you pay cash, the return on your cash is going to be low, unless you start projecting 10% price increases, which is another matter.

bubbly
Member

$80k to 110k can get you a nice house in Maricopa, AZ next to Bristol Palin. 😉

pricedoutfornow
Guest
pricedoutfornow

Off-topic, back in Kelowna for work. Amazingly, I've seen not one, but TWO sold signs on some houses that were for sale over the winter. Too bad these two sold signs are dwarfed by the new For Sale signs that are popping up. On the street where I'm staying, the last two weeks have added four For Sale signs. Prices still aren't dropping though, every time I look at the listings on MLS, it's the same old price. Word is there are tons of listings, and also lots of places for rent. People who previously had no trouble renting out their basement suite for $1000/month are competing with condos or houses bought as investments, which go for much cheaper rent. Interesting times. People still want to talk real estate though, and how much their property is worth.

Frank Grimes
Guest
Frank Grimes

I just got the "you're throwing your money away on rent" speech at work. I responded that when I run the numbers for myself, it doesn't work out as a good investment/use of money. That resulted in an eye roll, a patronizing laugh, and more lecturing.

Just thought I'd share that with anyone else dealing with derisive treatment stemming from their financial decisions. Plus sharing calmed me down before I considering grabbing high voltage wires and electrocuting myself.

Best Served Cold
Guest
Best Served Cold
I just got the “you’re throwing your money away on rent” speech at work. I responded that when I run the numbers for myself, it doesn’t work out as a good investment/use of money. That resulted in an eye roll, a patronizing laugh, and more lecturing. Just thought I’d share that with anyone else dealing with derisive treatment stemming from their financial decisions. Plus sharing calmed me down before I considering grabbing high voltage wires and electrocuting myself. ::::::::: First, it is poor manners to openly discuss money, whether it is how much one's house is worth or how much rent they paid or how much of a steal someone got on their car purchase. If someone asks anything about money, that is really declasse – period. Second, when talking about housing and shelter, it is best to leave the… Read more »
4SlicesofCheese
Guest
4SlicesofCheese

@Frank Grimes

I have given up on trying to convince anyone but family. I think its best to avoid these conversations in general. It is particularly sensitive with family. I am glad I got through to my sister. We argued till the point she was in tears.

It is too ingrained into society that it is. Hell I used to be like that till I actually looked into it.

Ask 10 people if it is always better to own or rent and 10 out of 10 will say own without any calculations.

space889
Guest
space889

At least you aren't being told that renting means that you are basically a total failure, a pathetic loser who is no more than 1 paycheque away from being homeless on the street, by your own parents no less…

Best Served Cold
Guest
Best Served Cold

At least you aren’t being told that renting means that you are basically a total failure, a pathetic loser who is no more than 1 paycheque away from being homeless on the street, by your own parents no less…

——-

time for new parents….

jesse
Member

@Best Served Cold: Wow BSC fighting declasse fire with fire!

I like the one where you state your money's at work elsewhere making better returns, which wouldn't necessarily be a lie even if it were in cash. I doubt that would make any sense to them so leave it to their imaginations.

reallydumpybear
Guest
reallydumpybear

Bear renter is total loser. That is problem bear. Look at heroic Japanese nuclear power plant worker. No way any of them rent bear no way. Only land owner would be heroic like that little loser bear.

bubbly
Member

@reallydumpybear: "Look at heroic Japanese nuclear power plant worker. No way any of them rent bear no way. Only land owner would be heroic like that little loser bear."

___________________________________________________________________

I am sure that the people who own land around the Japanese nuclear plants feel like winners.

Frank Grimes
Guest
Frank Grimes

If I am feeling particularly mean, or there is an attempt to be snubbed by someone stupid and junior, I just say something like, “wow, you must be worried – if someone like me who makes twice what you do is not buying, it must be a sign that something is wrong with the market.” That one usually deflates the hell out of them.

Thanks for the feedback Best Served Cold. Unfortunately I am the 25 year old "stupid and junior" at my office, who makes less than most others here. Plus, I only have a 85K saved, which seems to be peanuts with regards to aggressive investment plays. Although my understanding of peanuts has been shaped by the posters at Garth's website, who all seem to millionaire investors ten times over.

Flip Flop
Guest
Flip Flop

@bubbly

Quit feeding the trolls. Especially weak ass ones like that.

Best Served Cold
Guest
Best Served Cold

Unfortunately I am the 25 year old “stupid and junior” at my office, who makes less than most others here. Plus, I only have a 85K saved, which seems to be peanuts with regards to aggressive investment plays.

***

Fantastic savings for a 25 year old who has been renting since they went to university! That is what, 20k a year saved since you graduated. You must be making great money, and hardly the stupid 25 year old

Relax – if you saved that much in a few short years, you will be sitting pretty in a few more years, regardless of whether you invest or not.

Feel good about what you have done in such a short period of time – really.

As for Garth's posters, well, everyone is a millionaire on the net.

bubbly
Member

@Flip Flop: Only if you follow me on twitter. 😉

Best Served Cold
Guest
Best Served Cold
Unfortunately I am the 25 year old “stupid and junior” at my office, who makes less than most others here. Plus, I only have a 85K saved, which seems to be peanuts with regards to aggressive investment plays. _____ By the way, you are 25 for Pete's sake. Do you want to be homeowner at that age? If you buy a house, say goodbye to the weekends. At your age, with your money, you should go travel for a bit, buy yourself something nice. Keep saving, but enjoy your life. You are only young once, and you can be a homemoaner for the rest of your life. Trust me, in a few years, all the 20 somethings that bought are going to jealous of you – your discretionary income to date, travel, dress well. Instead of bragging how they got… Read more »
Chelsea
Guest
Chelsea

Is it true that we are sitting at 20k for Inventory (according to Larry's site)

How does this compare to years prior?

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