We've warned about investing in US property on endless occasions.
It seems that the lure of massive returns and a hassle free investment doesn't sound too good to be true to !!!???! ( it always does to me .) Some people just want to believe and continue to queue up and handover thousands of their well earned pounds on the promise of some slime ball agent will make them a fortune.
Wake up you morons! Please!
A few years back the same schmaltzy rip off merchants moved their act from the UK and the 'developing European states' over to the middle pointless bit of America. ( the bit between NY and LA ). The greasy palmed property investment agents kept pushing places like Atlanta and Detroit and were offering 'big houses' for about £25,000. To a lot of highly gullible Brits, £25,000 seemed very cheap for a 'big house' and they handed over their life savings and felt like they'd got themselves a bargain.
Someone should of really asked them the question.
Have you ever been there?
I'm guessing most hadn't, and in many ways for those middle class socialist investors, you know the doctors/teacher types who wanted to boost their pensions they probably liked the fact that they couldn't even picture the area. Out of sight out of mind so to speak. They wouldn't have to think of themselves as ruthless opportunistic property moguls praying on the poor and unfortunate if they'd never smelt the deprivation and touched the grime of the poverty.
So what happened?
This is Money has uncovered and outlined some interesting realities of these 'realty investments', including an interesting one about one investor who bought a £28,500 house in 2010 via Assetz investment agents, who charged her a £2350 'finders fee'. Since buying the investor reckons they have forked out a further £4000 in tax and £4000 in repairs.
What its worth now you may ask?
Well according to a local estate agent a house on the same street has recently sold for £800, that's right £800. Now that sounds cheap for a house!
Read the This is Money article here