BiggerPockets

With the dollar plummeting to an all time low and predictions that it will continue to drop it seems like a good time for me to buy as I am currently in Europe and converting my Euros to dollars. However the dollar crashing and the surplus of inventory out there is a concern for me. There are obviously people still buying in the States, it's why we are all signed up on bigger pockets and as always there are advantages and disadvantages. Can we expect the prices to crash in the future as they have stayed a steady rate for the past couple years. This will be a long term investment for me so the immediate outcome is not important but if prices are coming down then maybe waiting for that would leave me in a better negotiating position. I have been outside the US for some time and following from abroad is not the same as things always seem grimmer when on the outside, yet still I cant help but wander is this the right time to by property?

Rida,

You mention that you are outside the US but you list Chicago as you home in your profile.

I am based in London but have lived in the US at different points. I was born there and lived there when I was younger.

Great RE investing is about finding deals that work and work now. Value investing would be the term from the equities market. If you find great deals that provide cash flow or meet some other long term need then keeping the property is not likely to matter too much. You said you are focusing mostly on buy and hold so short term corrections do not matter much. Less so if you buy below market.

You face a couple of other variables. There is the FX angle. If you expect to keep the cash in the US for a long while then it matters less what the short term FX movements are doing.

Then there is the tax situation. Your specific tax status, if your home country wants a piece, etc. A bit too complicated for this thread and maybe too personal for a public BP discussion.

There are great deals in the US and the Euro is strong now. I assume you know the laws when it comes to ownership and dealing with rental properties. If not post some questions or get in touch (PM, email, what ever).

Good luck and good hunting.

Rita,

I used to trade currencies professionally for a few years before moving on to trade commodity derivatives.

From a currency standpoint here my opinion:
1) Nobody will be able to tell you for sure what is going to happen with currency values
2) I think the Euro is going to peak before the election. If the Dems make it we will see a gradual strengthening of the Dollar. If the Reps get in again we will likely see a further deterioration of the Dollar. I could write a few pages why I think that, boring stuff.
3) Euro will peak at 1.5963.... don't hold me to the last digit ;-), who knows how high it will go, just think I know the rough time it will peak (possibly only local peak)

Keep in mind that the exchange rate is only relevant for your down payment and your mortgage payment. If you put 10% down then exchange rates are only of marginal interest.

You did not say where you would invest? There area areas where prices are increasing as we speak (Aspen). Real estate is a very local thing.

Rida,
I second what Cbear says. Chicago is a great place to live (I'm biased though ;-) ). However, Chicago is plagued with poor cashflow. If, as your profile suggests, you are purchasing property to be a landlord you must look outside the city. That being said, I know plenty of people who live in Chicago and own property right outside of the city.

Just be careful about publicizing that you are looking to buy and have cash on hand. There are a lot of vultures in this area looking for what they perceive as " newbies" with cash. :wink:

Tim

One commentator made a very good point - it depends on where in the US you invest in. We spent years researching and visiting markets throughout the east coast before we decided to settle in Syracuse. We've been successful in Syracuse, NY so far and we are very optimistic about the opportunities here. Bucking the national trend, Syracuse has shown modest, consistent growth and economic forecasts indicate that this trend will continue in 2008-2009. Here are some recent encouraging statistics:

* In January 2008, the National Association of Realtors named Syracuse as one of the four healthiest housing markets in the nation.

* Home sales in greater Syracuse increased 11% in December 2007, compared with December 2006, according to the National Association of Realtors. That contrasts with a 22% decline in sales nationwide.

* The New York State Association of Realtors reports that the median price of homes sold in Onondaga County rose 4.8% to $131,000 between 2006 and 2007.

* Fortune Magazine ranks Syracuse #5 on its list of cities where home values are expected to rise, with projected increases of 3.6% in 2008.

* CNN recently ranked Syracuse #99 out of 100 cities in terms of foreclosure rates.

* According to the Housing Cycle Barometer, Syracuse ranks as one of the least overpriced cities in the nation, coming in at #118 in a list of 189 cities.

Hope this info helps you!

Yes, now is a great time to invest in the U.S.

Why?

Good News: The United States is in the economic toilet right now, with no signs that things are going to get better anytime soon.

You might be asking me why that is good news?????

It is an opportunity to " Buy Low" and " Sell High" later!

It seems that people buy EVERYTHING when it is on sale, with the exception of Stocks and Real Estate. This phenomenon has always baffled me.

I have investors ask me all of the time if we are at the bottom? I don't know......probably not...........I am almost sure we are not.........but if you wait for the bottom, I can promise you that you will miss it.

It is my honest opinion that there has NEVER been a better time in history to make the move into real estate investing. However, it has to be done smart and without emotion.

If someone is trying to pressure you into an investment in this market, walk away! The only pressure that should be applied in this market is by the buyer. If you miss out on an investment property, do not worry about it, there are many.....many.....many more opportunities out there right now.......

Have a Profitable Day!

Ok, reached my target yesterday. Man what a ride, much faster than I thought.

In any case 1.5978 is the current all time high. I think the air is getting very very thin up here and we should see some correction soon.

All foreigners, get the check book out and buy something in the US. Just make sure to buy in the right areas ;-)

It is ALWAYS the right time to being buying somewhere in the states. You should never stop investing no matter what. Of course with different cycles you will change your techniques, but it is always a great time to buy. In every market there are ways to make money.