View Full Version : Time to Buy: US Housing Recovery Is Under Way
Housing affordability is at its best level in 30 years, according to Ken Rosen of U.C. Berkeley's Fisher Center for Real Estate, who says now is the time to buy and that mortgage rates will be much higher in five years. - marketwatch.com
Watch video: Time to Buy: Housing Recovery Is Under Way (http://www.marketwatch.com/video/asset/time-to-buy-housing-recovery-is-under-way/52EDA9A3-4F24-4600-A369-B32AF30C37D0)
bargain hunter
22-07-11, 22:32
that is a concern for us actually. a sooner than expected US recovery may lead to higher US interest rates and higher SIBOR.
Housing affordability is at its best level in 30 years, according to Ken Rosen of U.C. Berkeley's Fisher Center for Real Estate, who says now is the time to buy and that mortgage rates will be much higher in five years. - marketwatch.com
Watch video: Time to Buy: Housing Recovery Is Under Way (http://www.marketwatch.com/video/asset/time-to-buy-housing-recovery-is-under-way/52EDA9A3-4F24-4600-A369-B32AF30C37D0)
Regulators
22-07-11, 22:54
Anyone interested in florida?
Jonathan0503
22-07-11, 23:13
I heard can get a property for around US$50K.
If that's the case, might not even need a loan. Or interest would also be quite insignificant even if rates were to rise
Regulators
22-07-11, 23:19
Those areas you can get 50k properties, you will hear gunshot outside your house and if left vacant long enough, the entire house will get vandalised.
I heard can get a property for around US$50K.
If that's the case, might not even need a loan. Or interest would also be quite insignificant even if rates were to rise
that is a concern for us actually. a sooner than expected US recovery may lead to higher US interest rates and higher SIBOR.
....US Job market is still bad..:eek:
Prices of US property might rise..but that may be more due to inflation and FED keep on printing money rather than actual recovery..:2cents:
Buy a house in Florida for what :confused:
Holiday? It's a very boring place.
If for investment, how are you going to manage it from SG?
Regulators
23-07-11, 10:45
Brazilians and europeans are snapping up properties in florida, should go where the investors are going. if you think holiday homes can't make money, you do not know anything yet. There are investors who buy only ski holiday resorts for investment.
Buy a house in Florida for what :confused:
Holiday? It's a very boring place.
If for investment, how are you going to manage it from SG?
that is a concern for us actually. a sooner than expected US recovery may lead to higher US interest rates and higher SIBOR.
I agree with the vid:
interest rates to remain low for the next 3 years. But in 5 years' time, it is likely to increase.
Even if US does not recover in the next few years, many countries including SG will be raising the banks reserve ratio requirement. MAS Strengthens Capital Requirements for Singapore-incorporated Banks (http://www.mas.gov.sg/news_room/press_releases/2011/MAS_Strengthens_Capital_Requirements_for_Singapore_incorporated_Banks.html)from 1st Jan 2015 onwards. This will cause interest rates and spread will most likely go up and/or it becomes more difficult to get financing.
Add this with a recovery of the global economy over the next 5-10 years, it's possible for interest rates to see a significant rise.
So now is a good time to buy while interest rates are low and certain (but not all) new SG developments are "priced to sell".
Brazilians and europeans are snapping up properties in florida, should go where the investors are going. if you think holiday homes can't make money, you do not know anything yet. There are investors who buy only ski holiday resorts for investment.
Florida is huge. You can't generalise for the whole of Florida. Florida is no ski resort, so which area you think it's a good place to buy and have you been there?
I didn't say holiday homes can't make money.
I only asked what a Singaporean would do with a house there. If you tell me Singaporeans like to go there for summer holiday, you must be joking :D.
Besides, remember hurricane Katrina?
Regulators
23-07-11, 11:06
Haven't you heard of property management companies? You may want to check before making assumption that florida is only for holidays. The company that built part of the circle line Alstom is also based in florida. There are many other companies supporting various industries in florida. You could also say phoenix has nothing to offer, but it is home for intel. Why don't you also say las vegas is a desert and has nothing apart from casinos and not worth buying, but why are the properties there not cheap?
You don't have to be sarcastic.
I asked what the reason for buying a house would be.
You are the one who mentioned ski holiday.
If you completely trust the management companies, sure. Don't even bother to go and look at the place. Just give them the money.
We're not talking about phoenix or las vegas here. We're talking about florida. I've been to a few but definately not all cities in florida, so I'm curious part of florida you think is a good area of buy?
Regulators
23-07-11, 11:33
florida property prices is currently experiencing the low, and in recent times as I have mentioned, foreigners are buying up properties there, especially the ones near the beach. I speculate that it is a matter of time prices there will skyrocket in florida, just like how chinese investors are causing canadian properties to go up by as much as 50% in recent times.
You don't have to be sarcastic.
I asked what the reason for buying a house would be.
You are the one who mentioned ski holiday.
If you completely trust the management companies, sure. Don't even bother to go and look at the place. Just give them the money.
We're not talking about phoenix or las vegas here. We're talking about florida. I've been to a few but definately not all cities in florida, so I'm curious part of florida you think is a good area of buy?
I am more interested in property in San Francisco. Good weather and ppty price quite stable. I must say a decent house with slight better location ,3bd asking no less than usd700k. I agree that getting a ppty mgnt is the best way to safe guard and manage the house, only concern is the depreciation of usd vs Sgd . US tax is also my concern, Increase in int rates. Lastly US debts issue can drag their economy. As for the upside is the price is cheaper than before but may not the cheapest yet.
Regulators
23-07-11, 11:45
It is not possible for usd and sgd to reach parity coz mas will step in before that can even happen. At 1.2 to 1 now, it is quite safe. I would avoid london properties coz pound may drop to 1.5 from 2 now
I am more interested in property in San Francisco. Good weather and ppty price quite stable. I must say a decent house with slight better location ,3bd asking no less than usd700k. I agree that getting a ppty mgnt is the best way to safe guard and manage the house, only concern is the depreciation of usd vs Sgd . US tax is also my concern, Increase in int rates. Lastly US debts issue can drag their economy. As for the upside is the price is cheaper than before but may not the cheapest yet.
It is not possible for usd and sgd to reach parity coz mas will step in before that can even happen. At 1.2 to 1 now, it is quite safe. I would avoid london properties coz pound may drop to 1.5 from 2 now
Care to explain more abt the pound drop?
Regulators
23-07-11, 11:53
Further qe and troubled europe. I think ireland is also far from recovery.
Care to explain more abt the pound drop?
Further qe and troubled europe. I think ireland is also far from recovery.
Are you referring to pound or euro?
Is it worth investing in a country with trillion dollars of debt and devaluing currency? Housing loan debt is still a problem in the US.
It is not possible for usd and sgd to reach parity coz mas will step in before that can even happen. At 1.2 to 1 now, it is quite safe. I would avoid london properties coz pound may drop to 1.5 from 2 now
Is it worth investing in a country with trillion dollars of debt and devaluing currency? Housing loan debt is still a problem in the US.
That's the exact point I try to bring across , so is not worth investing in US ppty now, unless u have intention to retire there and not converting it back to Sgd. uS job market still weak, 9.2% unemployment. Not to mention their country is still at the risk of getting a Downgrade rating from s&p.
Regulators
23-07-11, 16:16
Don't underestimate the impact of foreign pty investors. US unemployment data is just one aspect to look at, coz you might not even be selling to an american next time. China investors singlehandedly jack up the prices of canadian properties, likewise china investors have also caused a stir in our ocr prices. Worse case scenario if you can't sell your american property, the rental yield alone is enough to cover your purchase price in less than 10 years
Was in US recently and my US friends said that properties near California region have dropped and businesses were also affected. Those properties in the Penn State area is not so badly affected. Advice to hold first.
Don't underestimate the impact of foreign pty investors. US unemployment data is just one aspect to look at, coz you might not even be selling to an american next time. China investors singlehandedly jack up the prices of canadian properties, likewise china investors have also caused a stir in our ocr prices. Worse case scenario if you can't sell your american property, the rental yield alone is enough to cover your purchase price in less than 10 years
Comparing distress US ppty in Florida and Orlando versus projects in Iskandar, wonder which is a better investment
Iskandar could be worst as project can be stalled.
Comparing distress US ppty in Florida and Orlando versus projects in Iskandar, wonder which is a better investment
Regulators
23-07-11, 18:35
Is iskandar a joint venture by singapore and malaysia?
Don't underestimate the impact of foreign pty investors. US unemployment data is just one aspect to look at, coz you might not even be selling to an american next time. China investors singlehandedly jack up the prices of canadian properties, likewise china investors have also caused a stir in our ocr prices. Worse case scenario if you can't sell your american property, the rental yield alone is enough to cover your purchase price in less than 10 years
You are correct. You buy first.
Is iskandar a joint venture by singapore and malaysia?
Temasek is holding a 40% stake in the Medini project which will be like a medical hub with gleneagles setting up
Anyone can advise on all the taxes involved if you do not hold a social security number in US, such as tax on rental income (i read it was 30%), capital tax when selling (20%) and other related tax and charges to take note of?
Am looking at some houses in Houston ( Sugarland, Missouri City, Woodlands, Galeria) to buy and rent out. 200K to 250K can get you a pretty nice 3 to 4 bedroom here.
it only make sense if you are valuing your investment in USD
I hv setup a LLC and bot into US properties in FL. Also spent lot of time in TX as well.
There are many "agents" selling US properties here. If u hv the insight, u will know they are charging around 30%-50% above cost. Quite a number of models here, including selling deeds as well. Some mark up 40% and then take away 30% upon you sell the properties, and on top, charge u 10% on mgt fee.
I went to one, selling into MI, with the address, I show to the agent that that unit was available in the market at 35% cheaper.
Need to be very careful, we will be going there around Oct...not so hot...afterall, US is now having the double dip in the housing prices.
U can PM me if ur interested to share with me
What's remtal yield? Was in houston too in july. It is really hot at 46degC.
I hv setup a LLC and bot into US properties in FL. Also spent lot of time in TX as well.
There are many "agents" selling US properties here. If u hv the insight, u will know they are charging around 30%-50% above cost. Quite a number of models here, including selling deeds as well. Some mark up 40% and then take away 30% upon you sell the properties, and on top, charge u 10% on mgt fee.
I went to one, selling into MI, with the address, I show to the agent that that unit was available in the market at 35% cheaper.
Need to be very careful, we will be going there around Oct...not so hot...afterall, US is now having the double dip in the housing prices.
U can PM me if ur interested to share with me
Unfortunately not all temasek project mke $. They cld hve gone in becos of political reason.
Temasek is holding a 40% stake in the Medini project which will be like a medical hub with gleneagles setting up
Should we use SOR or Sibor now?
3mths SOR is 0.2% lower than SIBOR. Must always have no lock-in.
Should we use SOR or Sibor now?
3mths SOR is 0.2% lower than SIBOR. Must always have no lock-in.
UOB is offering 3 months SOR, DBS and HSBC uses Sibor.
DBS and HSBC both say avoid SOR because it is more volatile.
But I think SOR being so low, could save me alot of $$.
Yes all no lock in.
Anyone else can give their opinion?
buttercarp
24-07-11, 13:46
I chose OCBC SOR.
OCBC has option of SOR and SIBOR.
Did not see all these posts here, otherwise would have gone to UOB to compare.
I thought SIBOR more prone to fluctuation?
I chose SOR cos it is fixed.
Mine has no lock in period.
Currently the SOR is lower than SIBOR but the banker told me that if the interest rate goes up, SOR will rise faster than SIBOR. For the 1st 2 yrs, there is not much difference, the great difference is when your ppty is almost or fully completed as during this time, your loan will be fully disbursed by the bank.
Uob is removing SOR by this month end. I wonder what's the real reason. They don't make money or it is too risky for consumers?
So who is right? DBS say SOR is volatile, UOB is removing SOR...
I will ask OCBC and standchart tmr.
ANZ has SOR too. SOR is more volatile and it means more admin work by the bank in administering SOR home loan package as compared to SIBOR which is quite stable. Unless US interest rate goes up, SOR will be the first to move. However, SOR has been below SIBOR for quite a long time. Saving may not be so much if it is a BUC project. What is the base rate for UOB, DBS and HSBC now?
Uob is removing SOR by this month end. I wonder what's the real reason. They don't make money or it is too risky for consumers?
So who is right? DBS say SOR is volatile, UOB is removing SOR...
I will ask OCBC and standchart tmr.
ANZ has SOR too. SOR is more volatile and it means more admin work by the bank in administering SOR home loan package as compared to SIBOR which is quite stable. Unless US interest rate goes up, SOR will be the first to move. However, SOR has been below SIBOR for quite a long time. Saving may not be so much if it is a BUC project. What is the base rate for UOB, DBS and HSBC now?
SOR is about 0.2%
Sibor is about 0.4%
All banks are offering about 0.70% to 0.75% + (either SOR or Sibor).
I wonder which to use for near completion project.
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