Relative to other nations, RE in USA is cheap

RE in USA vs other nations

Nationally :slight_smile:

1 Like

Bay Area should be closer to that of Australia. I remember my SF home value when I bought it in 2002. The appreciation is right about at where Australia is.

1 Like

Bay Area Case Shiller compound growth rate is about 5.5%. Judging from graph, USA as a country is around 4.3%. Australia 7.6% and New Zealand 8.7%.

Maybe we should look into buying properties in New Zealand.

but what makes you think New Zealand is going to continue to outperform? And besides, it is so secluded that many kiwis migrate to Australia to find jobs.

More fun with data:

From top to bottom: New Zealand, Hong Kong, Australia, Singapore and USA. HK has an extremely steep climb after 2009. What’s wrong with Singapore?

Time travel yourself back to 1980. The same bearish reasons you cite also held true back then.

But I changed my mind already. I should go back to Hong Kong and buy something there… I was looking up the mortgage rule there. Seems I have to put in 60%… :cry: That’s the problem with buying foreign properties. Leverage is extremely low. With mortgage I can juice up Bay Area return to around 10%, double the 5.5% rate I quoted earlier.

No, don’t do that. Why compete with a billion Chinese people when there’s plentiful abundance here in America? Bay Area is already the top of the ladder as far as America is concerned. Just sit back and enjoy the ride :slight_smile:

Yeah, after accounting for leverage I am not going anywhere… Bay Area it is.

1 Like

Government steps in with many cooling measures such as ABSD and debt is capped at 60% of a borrower’s income, to curb property speculation especially by foreigners.

Cooling measures lead to worst performance in 13 years

Well, for the next four years, it’s a good bet. After Trump is out of office, all the Americans will come home.

Australia restricts foreign ownership.
It is complicated. .http://www.yourinvestmentpropertymag.com.au/property-tips/understanding-the-latest-changes-in-australias-foreign-ownership-laws-80236.aspx

1 Like

Smart country.