RESIDENTIAL MARKET

THE RESIDENTIAL MARKET is where the opportunites are right now -
I see these opportunities falling into two distinct categories -
* Those properties that are at give away pricing that need rehab and deliver good yield. Where between now and when the value comes into the property there is excellent cash flow.
* Properties that have pricing that is not in the "giveaway" bracket, but are strategically located, and whose pricing may bounce back quite quickly.

The first scenario is what we have been talking about to date, purchase for US$10k, rehab and rent. No US bank lending available.

The second scenario has a different price point, I am still concluding my research on the price range - but it would definitely be US$150,000 plus. One can borrow from a US bank on these properties. Whilst interest rates are currently around 6% remember what was reported about interest rates in my previous blog, There is a strong expectation that these will reduce substantially as the recsue package kicks in. With these properties one would be buying at a discount to valuation of 40 - 60%.

I will keep positing information as it comes to hand.

Residential Real Estate is definitely where the opportunity is right now - no question.

So it is a matter of moving forwards and firming up the opportunities. This is a process.