For several years now, people have been trying to call me to ask if it is still a good idea to invest in property in the united states? I have been buying properties in the united states for more than twenty years already.
Buying a real estate in the united states started in the late 80s, when i got myself mixed up in loan debacle and savings. This has been when the banking system in the the southern part of states was failing and we even had to make transactions of the property buying and selling without any banking system, since there were virtually no banks around.
Now it's almost like there are bank crisis every twenty years in america. Prices significantly dropped, sometimes 92 cents on the dollar, when i was buying properties. We can even buy properties 5 cents on the dollar! There were even home units that we could buy for as far as $600 and a couple of thousand dollars per house.
The fact that the Americans are currently going through a major bank crisis, a lot of Australians are anxious to take advantage of the US market. Perhaps you don't have to worry about this matter if you are not likely to live in the united states. In the late 80s, I did so spend a lot of time with some Australians who were trying to save what's left from their capital, the main city they own dedicated to the U. S. And after twenty years, I'm doing it again : helping Australians who lost a lot of money, to get out of the united states and will still be able to keep the remaining capital they own invested.
The American and Australian Culture Differences
Why do you think this happened? Why do some Australians invest in the united states and end up being disappointed? Even if we read about 15% returns : 25% returns. I will examine that fact for you in a little while chartered building surveyor london. But before that, I'd like to go back to analyzing the differences between the way Australians work from that this Americans work. Most of this is outlined in the book, written in the 1970's called, "American and Australian Cultural Differences".
In the book that Donald Trump wrote, "The Art of the Deal", he simply mentioned there is no such thing as a win-win operating. It has always been 'I win and you lose'. Here's the first major difference, in Australia, people come first, then the money comes second. While in the united states, it is the other way around, big business and the big bucks comes first before the people. This doesn't mean that Americans are bad and we are good, we simply have a different culture. Also, our governing laws lean that way. Our Australian culture and mindset is reproduced in our legal system, a system that is shared with both legal and equitable law. Once a judge sees a contract which he doesn't like, he can overturn the contract since under the equitable law, which means fair play law. Unfortunately, this is not how it works in the American playing field. Genuine is always on the joint of paper.
On the lighter side of playing the united states market is, both of us can sit down and talk work out a contract. I can even trade a percentage of a property the united states for only $7. As long as both of us sign a one page General Warranty Deed or Warranty Deed, that property is bought for $7. And it costs a whole lot because that is what cost me to record this at the local court house and make the purchase. That is the deal whether we had a creative hire option or an installment contract. Unfortunately, if you get into some bad terms, you have no government body to come in and protects you. The deal is, the dollar comes first. So, if you are in a country where the real estate has an "I win and you lose" kind of rule, be careful. They do have different set of rules.
Here are some interesting stories of what actually happened over the years. Perhaps by the end of this article, some people can impress in their heads that the US may not be the best place to invest, unless, you already live there. US Property Management. A lot of Australians assume that the US Property Management is handled the same way as it is in Australia. Here, when you buy or sell a piece of real estate, it is managed by the real estate agent. The united states, the people who sold the property to you have nothing to do with the management. Here, it is difficult to find someone who shares the same moral code such as Australia. And if ever you find one, it is expensive, and it can depletion you financially. Here's an example. Extraordinarily, the American management companies can never bring your money to you in Australia. They seem to have a poor mail service simply because they lose a lot of cheques. What they really do know is, your cheque basins because Australia could be Atlantis. Bottom line is, it is about taking your money and not let you make money.