We all know house and rent cost are high even still after the housing market crash. I was watching a couple of episodes of International Homebuyers or whatever the show is called.
In one episode there were 3 houses by the beach but in remote Panama. The houses ranged from $800k to $1.4M in remote Panama! They weren't particular big houses from 3k sqft to about 5k. One didn't even have a pool and one had a very small lot. It seems for that kind of money you could get a similar house on a Florida or California beach.
In the next episode the couple wanted to relocate to Italy. They had only a $60k budget so had to look in a very very small remote old town. The first house was $100k and didn't have heat or a kitchen and need repairs and remodeling. The 2nd house was about the same and looked like an old cave inside. The last the one they picked was 40K one bedroom and basically a small dump with no heat. All three of the hosues appeared to be hundreds of years old.
The third epsiode a family wanted to move from S. Africa to Sidney Australia. All three house were $880k-$930k. None of these houses were by the beach or anything like that. Just normal houses. They picked the 40 year old $880k house.
Does this not sound nuts? Where do they think people are going to get nearly a million dollars to buy a pretty average house?
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Where do they get housing prices?
- Thread starter mechanicx
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The prices are likely what the market will support.
That said, I agree that there are a lot of places in the world where real estate prices have a lot of room to fall.
The price is set such that there are buyers willing to pay that much.
Well in continental Europe, it is mainly a rental market, so buying is for long term investors and always has been, and there just isn't much of a market.
In Sydney, there is a boom going on, which is partly justfied by what is going on in the real economy there. There is a lot of Chinese immigration going on and Asia is generally doing well. Australia is very much part of Asia.
Now Panama I don't understand.
Lastly, when you come into a market from the outside, you usually don't get the best advice.
It is all relative to location. For example, a quick search on zillow shows that Ohio house prices are less than half of similar houses in CT.
And if you live in Westport or Greenwich, CT the house prices can be over $1 million.
Examples:
Ohio $199,000
http://www.zillow.com/homedetails/4940-Hayes-Rd-Ravenna-OH-44266/50886783_zpid/
Westport, CT $1,699,000
http://www.zillow.com/homedetails/8-Gault-Ave-Westport-CT-06880/57418073_zpid/
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Kestas
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Originally Posted By: Stu_Rock
I agree that there are a lot of places in the world where real estate prices have a lot of room to fall.
It just seems to me that no matter how you slices it when you compare average income to average home prices, houses are way overinflated in price. I don't think the market is supporting it except for getting loans and going into debt for most of your adult life and not having much left over.
There was a time when houses and a track of land were almost free in comparison.
Originally Posted By: Kestas
Originally Posted By: Stu_Rock
I agree that there are a lot of places in the world where real estate prices have a lot of room to fall.
I have several friends that bought and retired in Panama. The way to buy real estate there is to find a rental and live there for a few months and learn the real estate prices from the locals that actually live there. If you fly in fresh out of the US and think you are going to fly out in a few days with a good real estate deal .. forget it.
There was an article that Angola was one of the most expensive real estate markets in the world.
The reason is that it just takes one organization eg a financial company or the United Nations to bring in the purchasing power to require a quality of housing that is expensive to build in that location.
The city center in Vilnius could very well have some large companies creating a demand for housing due to opportunities in something to do with Lithuania as a whole.
Moscow real estate has been expensive for a long time. Mumbai also is very expensive. What very often drives housing values is the future opportunity.
In the US, the boom happened because people thought Nevada, California and Florida had huge future potential (and interest rates were artificially low due to Fed policy and there was a disconnect between the people originated mortgages and those who held the risk).
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Those prices are not out of line, also beleive it or not their are other desirable places to live outside of this country.
Originally Posted By: carwreck
It is all relative to location. For example, a quick search on zillow shows that Ohio house prices are less than half of similar houses in CT.
And if you live in Westport or Greenwich, CT the house prices can be over $1 million.
Examples:
Ohio $199,000
http://www.zillow.com/homedetails/4940-Hayes-Rd-Ravenna-OH-44266/50886783_zpid/
Westport, CT $1,699,000
http://www.zillow.com/homedetails/8-Gault-Ave-Westport-CT-06880/57418073_zpid/
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1999 Olds GLS
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800k to 1.4M does not buy a 3-5k sqft house on the beach in Calif. I live in one of the more affordable coastal areas of Calif. and 1M buys a nice house, maybe 2k sqft, near the water but not beachfront.
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