Holy jumpin Jehosaphat!!


Ok for some time I have known Australian housing is massively overpriced. About 6 months back I had a look at global property as a possible investment and wandered over to the US. Prices were good with nice houses available at reasonable prices (as far as I could tell).

I had a look today just out of curiosity and WTF is going on there?

I found this, is it a joke or are some prices really that low?

955 GBP (approx. 1,673 USD)

UNITED STATES
4 BEDROOMS 2 BATHROOMS DOUBLE GARAGE IN FULLY GATED COMMUNITY PLUS GOLF COMMINITY Viewing: By appointment Status: Type: Beds: Bathrooms: To let Detached 4 2 Parking: Furnished:     Driveway NO  
I know the housing market is crook over there but this???
Heres an Aussie version of the same thing. No enclosed carport but a nice spa instead.

MT TARCOOLA CUL DE SAC

$429,000

7 BUSHBY CLOSE MOUNT TARCOOLA
Features: Inground Spa, A/C
This 4 bedroom 2 bathroom family home in quiet Bushby Close is ready for the next family. Consisting of an open plan kitchen/dining/family room area, a separate lounge and substantial pergola it is complimented by a 6m x 6m powered shed and a games room with a massive heated spa.
Is it actually possible to pick up qualityhousing this cheap? I was put off by the relatively high tax rates for overseas landlords last time (50%), but this seems like houses for chump change.
If housing is this cheap I want a refferal to a reputable RE agent/property manager who will direct me to easily rentable quality housing.
Id encourage anyone to have a look at the real estate site for a look at some rather ugly chickens (fannie freddie) coming home to roost….

24 Responses to “Holy jumpin Jehosaphat!!”

  1. bingbing Says:

    Not telling you what to do but Donald Trump said the other day that if you can, go and buy a house off the bank. Bargains galore.

    Sure. Everybody selling, nobody buying, foreclosures galore thus banks offering up dirt cheap prices to get some cash back.

    Probably a lot more renters out there now, too, since Obama and his Fannie mates triggered off this whole credit crisis.

  2. spot_the_dog Says:

    I would wonder if there isn’t a catch – back taxes you have to pay or something?

    What does “Status – to let” mean?

  3. Angus Dei Says:

    That’s “to let.” IOW, the price is your monthly rent. The fact that they’re renting it suggests the real estate market fall has made the market too soft to sell it, or that they have enough money to ride out the soft market to sell it later when prices rise again.

    Housing prices are low, but not THAT low. It looks like a $250K-500K home, depending on the state, community &c. Since it’s a gated community, I’m guessing the price is actually perfectly in line with the Australian home.

  4. thefrollickingmole Says:

    Oops, I should have read a bit closer. The site usualy doesnt stick “to let” in with for sale on the local version.

  5. spot_the_dog Says:

    Thought that looked a bit odd. I checked out some online real estate agents in my old neck of the woods, eastern NC & OBX, and whilst median prices have fallen in the past few years they’ve really only come down from the huge “bubble” – they haven’t come down fantastically. And there are still the really flash houses in Manteo & Kitty Hawk and the like going for $1 million +.

  6. thefrollickingmole Says:

    Still seem to be some cheap (by Australian standards) housing over there though. we are still waiting for our bubble to burst over here. My first property only went up about 20% in the first 7 years I had it, in the last 2-3 years it has more than doubled from that. What sort of % increaces did the US manage during its bubble?

  7. spot_the_dog Says:

    What sort of % increaces did the US manage during its bubble?

    At a quick search of OBX (NC) house/unit sales stats, Mole, I found this:

    * 2008 Jan1-Jul1 Median Price $335,000 – Total Units Sold 540
    * 2007 Median Price $365,000 – Total Units Sold 1,226
    * 2006 Median Price $395,000 – Total Units Sold 1,235
    * 2005 Median Price $427,000 – Total Units Sold 2,082
    * 2004 Median Price $386,000 – Total Units Sold 2,348
    * 2003 Median Price $325,000 – Total Units Sold 1,952

    I have no idea whether that is at all indicative of American stats overall – it is a very small kinda “niche” area. But it looks like currently, prices are not a lot more than they were in 2003. Although as this website points out, it’s partly because there’s not much of a market for the million-dollar-plus homes that jack up the median price.

    I’ll have a look later to see if I can find more general figures, and for a longer period of time, just out of curiosity.

  8. thefrollickingmole Says:

    Its quite possible the lower value housing was the sort inflated by the subprime financing moreso than the higher end of the market.

    Even so by those figures Australia has had a much larger inflation in prices which still hasnt burst yet.

  9. spot_the_dog Says:

    No kidding. The investment property I bought in late ’97 for something like $182,000 I sold in late ’07 (right after the election – clever me!) for well over $500k. That’s just crazy stuff.

    Maybe prices will crash again and I’ll buy it back at a huge discount. LOL. Gotta love Labor!

  10. thefrollickingmole Says:

    I cleared out of one of my properties just before the election, if I hadnt loaned heavily for the new business I would be debt free right now. Didnt make the same sort of return you did though!
    As it is some of my main customers are on unemployment benifits, so Kruddie can knock himslef out creating more of them as far as Im concerned.

    Im pretty convinced we will see a price crash here in Oz, posibly just after the new year.

  11. Angus Dei Says:

    I’m shopping for a house right now. A small circa 1,500 SF three bedroom/two bath/two car garage house – 20 years old but in excellent condition/brick or stone facade – in a nice neighborhood in San Antonio, TX (Golf course/Country Club less than a mile away) can be had for about $120K.

    That’s pretty frickin’ cheap, and the prices are going down.

  12. Angus Dei Says:

    In fact, to give some perspective, $120K is less than a mid-level Mercedes S Class automobile!

  13. The Wizard of WOZ Says:

    “Im pretty convinced we will see a price crash here in Oz, posibly just after the new year.”

    I hope so, I might actually be able to afford a home of my own then.

  14. spot_the_dog Says:

    One thing the housing boom has done is chased nice ordinary young “working families” out of some suburbs – in some of the coastal suburbs especially, if they didn’t buy in before 2000, there’s really no way most ordinary younger families can afford to buy in now. And that screws the demographics – you don’t get the same kind of mix of people in your neighbourhood. Some suburbs are turning increasingly homogeneous, income/”status” wise since the mid to late 90’s, and I don’t think that’s a great thing.

    I especially hate to see people tearing down all the smaller, what used to be more affordable, homes in an area and building huge characterless places. Pretty soon bye-bye goes the neighbourhod where you had everything from parents with little kids to middle-aged people to retired folks, and in come the neighbourhoods where both spouses are working 10-hour days in the city to pay off the mortgage and you never end up meeting or seeing or getting to know each other.

    The only people who will really be hurt by prices coming back to a more realistic level are those who bought in early and saw their on-paper “wealth” double or triple and went out and drew down/remortgaged and spent all that “free money” and are now stuck paying it back; and those who bought in late at crazy-high prices on 100% financing with the deluded thinking that because prices had doubled in the past 5 years they would always keep going up and up and up (i.e. “this house was 250k in 2002; I bought it for 500k in 2007; by 2012 it’ll be worth a million!!!!11!!” ).

    I have not a lot of sympathy for either group.

  15. nilk Says:

    You want to try buying or renting in Darwin at the moment. With the drilling offshore, the prices have gone through the roof.

    $650/wk to rent a 3br house, I was told yesterday by someone who has property up there. He’s laughing himself silly – he’s got a block of land which has near doubled in value in 12 months!

    Of course, I’m bummed about this because near on 20 years ago a clairvoyant told me that I’d meet a bloke who would leave me a hotel in Darwin after he carked it. She was most specific about this.

    Well, I’m still waiting. Now would have been a good time to inherit a pub up north lol.

  16. spot_the_dog Says:

    $650/wk is cheap as, Nilk. If Darwin keeps getting resources contracts, everyone but the resources workers and Aborigines will end up moving away because they can’t afford it, as has happened in the Pilbara here in WA. People who did own up there but don’t work in Minerals & Energy have sold out for huge profits, or have put their homes up for rental and moved down South.

    Average rental price in Port Hedland & Karratha, for example, is $1200 – $1800 per week.

    Certainly changes the character of a town, that’s for sure.

  17. thefrollickingmole Says:

    spot_the_dog

    I was in Hedland around 99-2004 the prices were terrible then.
    I was paying about 250 a week for a caravan site the whole time I was there. And thats before the boom took off.
    Darwin better get some land ready for release or they will be in the same boat, its no use doing it during the boom, it is almost impossible to get a house built.

  18. nilk Says:

    Frollicking, the next land release isn’t for a few years. That’s from the fellow I was talking with yesterday.

  19. thefrollickingmole Says:

    They are screwed, Port took about 7 years to bing in its last land release, instantly sold out within about 2 months.

    Native title held that up for a long time until enough bribes were paid, despite Aboriginals being unable to get housing either.

  20. Ash Says:

    Native title held that up for a long time until enough bribes were paid…

    It’s amazing how much pandering to one group can hold a society down…

  21. thefrollickingmole Says:

    There were about 3 different groups all scared one might get more than the other from memory.

  22. spot_the_dog Says:

    It’s amazing how much pandering to one group can hold a society down…

    Why do you think the Japanese canceled their gas plant plans here in WA and are going to the NT instead? They’ve been buggered around for ages here, finally gave up. Wonder if the NT bargainers will be any different, but.

  23. spot_the_dog Says:

    Irony is, now none of them (Kimberley Aborigines) will get anything out of it.

  24. spot_the_dog Says:

    And just a point of pedantry, Nilk – you mention “With the drilling offshore, the prices have gone through the roof.”

    The drilling is still here off Northern WA (though pretty close to the NT) – kinda hard to move the actual gas field (Ichthys in the Browse Basin). It’s just that, because they kept getting stuffed around by our Labor government and Greenies and the aboriginal groups here in WA, they’re actually going to pipe the stuff 850km away to Darwin where they are planning on building the gas plant now. Adding a few billion $$$ to the project cost – which should give you some indication as to how difficult they found it to come to a deal here.

    They actually thought they had come to an agreement with the “traditional owners” well over a year ago. More fools them.


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