More undeniable reasons to invest in the USA (scroll down to see how you finance your US properties NO MONEY DOWN) property market from Warren Buffet and The Wall Street Journal and why I do not buy in Singapore or Malaysia right now – please read the whole blog
More undeniable reasons to invest in the USA (scroll down to see how you finance your US properties NO MONEY DOWN) property market from Warren Buffet and The Wall Street Journal and why I do not buy in Singapore or Malaysia right now – please read the whole blog
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This is what Warren Buffet said only last week;
“If I had a way of buying a couple of hundred thousand single family homes and I had a way of managing them… I would load up on them and take mortgages out at very very low rates,” Buffett said in an interview with CNBC. “It’s a very attractive asset class right now”
- Warren Buffet
News from the Wall Street Journal Today (courtesy of Matthew Sturgess)…interesting news about AIG!!!
American International Group is planning to jump back into U.S. property investing, reversing yearslong efforts to downsize its real-estate business in the wake of its near-collapse and government bailout in 2008.
AIG until recently had been dismantling what was once a $24 billion real-estate portfolio packed with trophy properties around the world to help pay back U.S. government loans and keep the company afloat. Its investing has been limited primarily to a few European deals with a single partner. But now AIG is beginning to make plans for fresh investments across the U.S. that will begin later this year.
http://online.wsj.com/article/SB10001424052702304587704577335963793848928.html?mod=djemalertNEWS
What does this all mean?
A lot of economic and personal profit is made by being alerted who is buying and how much they are buying.
US is absolutely the best property asset undervalued market in the world right now and as you would have probably already heard from me, it is the first time in 80 years (since the 1929 great depression) that house prices have dropped below the median value. That is a big deal in any property market.
AIG held USD$ 24 Billion of toxic property assets pre-2008, which they purchased at the wrong time and for too much, and without government assistance they would be DEAD and BURIED, (you can also watch a recent movie called “Too Big to Fail” which illustrates how investment bankers such as Henry Paulson and Tim Geithner destroyed the economy of the USA by deregulating derivatives and how they both backtracked when they took government office, they are still living with that guilt, but don’t forget they are still VERY RICH, WATCH THE FILM, it is well acted and a true account).
When big companies, big funds and the most successful investor the world has ever seen start buying, you have to think, “Why are they doing that?” They are doing that because smart people buy in fire sales, not smart people buy when everybody is buying and follow the “herd mentality” an absolute guarantee never to achieve financial freedom, ever, because the herd does not understand and are not educated in property investment and ultimately they have not succeeded EVER financially.
AIG made their mistakes, the investment banks made their mistakes, they won’t make the same mistakes in a hurry again, they ALL nearly DIED, and that kind of intervention creates a pain awareness system to make you concentrate and think twice about investing.
Bottom line: If Warren Buffet is doing it, I am doing it, because I want do the same as the people that are already very successful, for your info Warren Buffet bailed out Goldman Sachs in 2008 with his own money.
What happens when the top investors start investing and spread their cash around?
Simple, their becomes MORE demand for properties, especially as Warren Buffet and people in his class are buying cash, this drives demand and shrinks supply, which means a window of opportunity closes and the more people buy it closes faster and before you know it house prices have doubled in the USA in the next 3 years….
The Message;
Buy in the USA now! and create financial freedom in a very short time. Buy in SINGAPORE OR MALAYSIA and wait a VERY LONG TIME to create any kind of financial freedom, WHY?
1. The Malaysian Property Market is over supplied and over priced. The mortgage rate is not the most attractive in the world, the rental yields have decreased in recent years as wages have NOT increased and less expatriates are moving in.
You buy a RM 1 million property in Malaysia, you end up paying RM 150,000 with legals, deposit and stamp duty (by the way you can buy a USA property cash with the same RM 150,000) then you pay RM 5,500 per month for mortgage, RM 450 for your service charge and I have not even talked about renovation, furniture and aircon yet! and you receive RM 4,500 in rent IF YOU ARE VERY LUCKY, and that is Mont Kiara, one of the most expensive areas in Malaysia with lots of expatriates (by the way Mont Kiara is 50% vacant now!)
2. You buy in Singapore, you are paying SGD$ 1.5 million for a decent 3 bedroomed appartment, you have to put 20% down, then you have to find furniture, legal expenses and find a tenant that will only pay you, if you are lucky SGD$ 3,500 which means even though the mortgage rate in Singapore is fantastically low at 1.2% you are still negatively geared, the mortgage is still way more than your rent, and now you will have to wait longer for gain because of the new cooling measures the Singapore government has put on foreign purchases, bearing in mind that 80% of Singaporean private property is bought by foreigners, transactions decreased 63% in december alone and the subsale private appartment market dropped 5% in value since January.
If you are a member of my lifetime investor club and YOU ASK, we can finance your USA property purchases NO MONEY DOWN (subject to status). Indeed you will be amazed what you can do to create financial freedom in a very short time.
You can contact us at;
marco@marcorobinson.com
Yours Truly,
Marco Robinson
