Investing in US Real estate e.g. Florida

garamchai2go · Post by **garamchai2go** » Wed Jan 14, 2015 2:04 am

I do not want to buy real estate in US for living but maybe for investment if return is going to be safe and good.
So instead of buying 500-700k house/apartment in NY/NJ or other expensive areas (and become slave for next 30 years), are there safe and known place for return in long term and cost in range of 100k -$200k max. Has anyone done this? I can think of Florida but not familiar with place. If someone can suggest some places with good weather conditions and less crime rates (better if some desi population), that will be nice.
Buying real estate in India is not going to be worth at this stage when it is already so heated. I don't think I am going to get any return for next 10-15 years, unless currency is doomed. Infact it may give -ve returns in next 5-10 years.

paisawala_sadhu · Post by **paisawala_sadhu** » Wed Jan 14, 2015 2:13 am

garamchai2go;590882I do not want to buy real estate in US for living but maybe for investment if return is going to be safe and good.
So instead of buying 500-700k house/apartment in NY/NJ or other expensive areas (and become slave for next 30 years), are there safe and known place for return in long term and cost in range of 100k -$200k max. Has anyone done this? I can think of Florida but not familiar with place. If someone can suggest some places, that will be nice.
Buying real estate in India is not going to be worth at this stage when it is already so heated. I don't think I am going to get any return for next 10-15 years, unless currency is doomed. Infact it may give -ve returns in next 5-10 years.

Try any major city of Texas - especially Austin, Dallas, Houston.

You can buy and then rent out multiple houses if you have the dough.

garamchai2go · Post by **garamchai2go** » Wed Jan 14, 2015 2:28 am

I met someone who retired, who bought some house in Florida for $120k and was renting for 1200 pm. I don't remember exactly where.
Then some of my friend was looking for Vegas, but crime rate is high in those areas, so one may end up in a bad deal.

PeterGriffin · Post by **PeterGriffin** » Wed Jan 14, 2015 2:37 am

I would hesitate to buy anything in FL due to very high insurance rates attributed to hurricanes.
A friend of mine bought a condo in RTP (Cary, NC) and was able to find a tenant very easily. Condos around these areas are around $130-140K with rents fetching about $1300. Cary is a highly safe area nestled around the RTP http://en.wikipedia.org/wiki/Research_Triangle_Park

garamchai2go · Post by **garamchai2go** » Wed Jan 14, 2015 3:16 am

PeterGriffin;590885I would hesitate to buy anything in FL due to very high insurance rates attributed to hurricanes.
A friend of mine bought a condo in RTP (Cary, NC) and was able to find a tenant very easily. Condos around these areas are around $130-140K with rents fetching about $1300. Cary is a highly safe area nestled around the RTP http://en.wikipedia.org/wiki/Research_Triangle_Park

Thanks. Is hurricane/insurance problem for whole FL? What about places like Orlando?

Chakraan · Post by **Chakraan** » Wed Jan 14, 2015 3:37 am

Real estate investment is not profitable in USA like in India.

You need to pay property tax, insurance,maintenance and then pay income tax also on the rental income.

The value of a condo/house does not appreciate much in most part of the USA.

Keep in mind that there will be some rental gap when the old tenant moves out and search for new tenant may take 3-4 months.

GutsyGibbon · Post by **GutsyGibbon** » Wed Jan 14, 2015 3:43 am

When it is an investment property, I would not invest in something far away - where I do not understand (rough idea) about the rental market, and the local economy. If it is your neighborhood, you hear from friends about what companies are hiring, where to advertise, how to use contacts, and how to maintain/monitor the investment.

Have you looked at small condos in your neighborhood (within 50 miles of where you live?) I am sure there should be ones like this for ~$200k. http://www.zillow.com/homedetails/17-Cleveland-St-Morristown-NJ-07960/39460516_zpid/

Sure, you can buy something far away, spend an hour signing documents remotely and the Florida home is yours. From a ROI perspective it will not be a whole lot different. I expect 6% return on any decent rental.

GutsyGibbon · Post by **GutsyGibbon** » Wed Jan 14, 2015 4:01 am

Chakraan;590894Real estate investment is not profitable in USA like in India.
You need to pay property tax, insurance,maintenance and then pay income tax also on the rental income.
The value of a condo/house does not appreciate much in most part of the USA.
Keep in mind that there will be some rental gap when the old tenant moves out and search for new tenant may take 3-4 months.

On the contrary, I have sold most of my RE investments in India before switching to renting out apartments in the US. The RE in the US is much more mature, I am covered for several risks, either by insurance or by a mature system - that I need to pay for. For example - Title insurance, credit checks, contract enforcement, city regulations etc. If I have a condo with a lake view - I have a say in it - if someone makes a decision to put a cell phone tower in front of my apartment. Or if someone decides to widen the road. The Rental vacancy rates are available for each city, and needs to be considered before making an investment decision. Also, knowledgeable realtors (many with an MBA) are available to advise on several aspects of the RE investment, ROI, risks, upswing potential - all based on real data and graphs - to make an informed decision. I am not disputing the %age return in India, as I certainly got much bigger returns on my India investments. But the risks, hoops and headaches were huge. It was not as though I spent an hour talking to a realtor+escrow agent and had a house bought/sold. That it exactly how long it takes for me to buy or sell a condo in my area. Total of 8 hours over a couple weeks for cash transactions. I see it as a CD which could mature in a couple months - if I want it to :)

I do not want to get into the hardships faced by me/people I know in Indian RE, as people here may know those better than me.

garamchai2go · Post by **garamchai2go** » Wed Jan 14, 2015 4:11 am

If, ever, I r2i, anything will be far away. I know it sound impossible but what investment options do you have nowadays. The only option remains is beat the inflation which will always kill you. Real estate is the only investment to beat the inflation and which is less risky than any other investment.
Chakram,
I think you do not the prices of Indian real estate. It is way way over heated. I mean there is so much inventory left but these builders do not want to sell these empty decent apartment for anything less than 75lac-1 cr in places like Delhi NCR new projects which are going to finish in 2017-18 and later . Houses it is 2-4 crores. In Delhi , or even a little reputed areas in NCR you can not even dream of buying anything. Then rent is very less as compared to EMI.

Chakraan · Post by **Chakraan** » Wed Jan 14, 2015 4:51 am

garamchai2go;590899 75lac-1 cr in places like Delhi NCR new projects which are going to finish in 2017-18 and later .

If you can book that under construction flat for 70L now, can't you sell it for 90L once it is ready to move in 2018. Forget about giving it for rent.