Investing in American property-flawed logic?

[blindswelledrat]

I read that the US will cut its interest rates to 1% this week.
This got me thinking. At least for the time being-mortgage reapyments would be tiny (or am I naive to think you would get a mortgage for anywhere near this price?) in conjucntion with house prices being rock-bottom.
Thus if you bought an American house right now- rental would more than cover mortgage (which is affordable even with no rental) and prices are bound to go up, as ever, in the long term?

I cant help thinking my logic is greatly flawed hence the question to you lot

[Hoppy2008]

I had a US mortgage until I swapped it to a UK one last year.
I think I was paying something like 6% at the time. The base rate then was probably about 3 or so %??

[james_tigerwoods]

Is it actually possible to get a US mortgage for a UK house ?

[HundredthIdiot]

Low interest rates tend to depress a currency. So you may be left with an appreciating asset in a depreciating currency, or various other worse combinations.

There are probably less abstract objections to your great plan. Would you be able to get a mortgage in the US?

[Tony*T3]

I dont think youd get a mortgage anywhere near US base rate. You'd probably be paying 4% minimum.

You are right though, those with the means should be buying up nice places in the USA. Cheap proeprty prices right now. Not a short term investment I wouldnt think.

[Hoppy2008]

james_tigerwoods said:

Is it actually possible to get a US mortgage for a UK house ?

Sorry, should have made that clearer.
I have a Villa in florida. When we had it built in 2004 we took out a US mortgage.
We changed it last year for a sterling mortage. Great timing too. exchange rate 1.95 then, 1.5 now!
If only I could sell it now I'd be laughing!

Edited by Hoppy2008 on Wednesday 29th October 15:32

Edited by Hoppy2008 on Wednesday 29th October 15:32

[blindswelledrat]

Hoppy2008 said:

I .
I think I was paying something like 6% at the time. The base rate then was probably about 3 or so %??

This probably answers my question. Its pretty irrelevant that its at 1% then as far as buying houses are concerned.

[Hoppy2008]

blindswelledrat said:

Hoppy2008 said:

I .
I think I was paying something like 6% at the time. The base rate then was probably about 3 or so %??

This probably answers my question. Its pretty irrelevant that its at 1% then as far as buying houses are concerned.

Probably.
But let me know if you want to take things further and Ill give you the contact details of the guys we dealt with over there.
No affiliation, but they were a massive help so would recommend them in a shot.

[Plotloss]

Rental market in the US is also quite a lot different from the UK.

People renting houses (other than short term lets in Kissimee) is relatively rare, most of the people renting go for apartments in managed blocks.

[Hoppy2008]

Plotloss said:

Rental market in the US is also quite a lot different from the UK.

People renting houses (other than short term lets in Kissimee) is relatively rare, most of the people renting go for apartments in managed blocks.

Thats where mine is.

[s3fella]

although the fed is cutting rates, they reckon fixed rate long term mortgages will be available at about 6%, ie 30 years loans, fixed at 6%. But with prices as low as they are, in the long term this may still be an excellent deal. But the FX rate is well against you if you transfer UK funds over to pay it.

[NoelWatson]

s3fella said:

But with prices as low as they are,