Job Discussion Forums

[tedkarma]

[naturegirl321]

What other countries have retirement visas similar to Peru and Thailand?

[globalnomad2]

For what it's worth, I have two single-family (detached, in British terminology) houses in Houston. One cost $98,000 in 1995 and is on the market now for $158,000. The other I bought for $120,000 in 2005. \

Only the first one is paid off, but that is irrelevant here in our discussion. The $158K house is rented out for $1300. That's a 121:1 ratio, I guess. Or a 75:1 ratio based on the price I paid for the house in 1995, but paid off only in 2001. The second one is rented out for $1100, a 109:1 ratio, correct?

Let's say I sold the first house and used the proceeds to buy two houses in Elmira, NY for $69,000 each (those that cost more in that area are simply overpriced; they are not bigger or better), and each house was a triplex (three units ea.). The average rent in those units seems to be about $400. If I rented out all three units in a $69K house, that's a 58:1 ratio. (69,000/1200). With one vacancy it would be 86:1. With two such houses, no vacancies, gross income would be $2400 and to be VERYconservative, net income $1200. And there would be about $10,000 left over after minor repairs (professional inspections would preclude me from buying any property in bad shape). $158K Houston house/minus $138K for the two Elmira houses / minus $10K for repairs and misc.

[sidjameson]

These American prices are so attractive. Reminds me of Britain 10 or more years ago. In the UK EVERYBODY is so aware of the futility of rent and that of course has pushed prices up. America is a different market than the UK of course, but I'd advise any American to buy now while they're so affordable.

Really, at those figures 200k is all you need for a decent retirement. Anybody know if Brits can buy over there?

[globalnomad2]

sid: you're right. I wanted to sell the Houston paid-off house now to buy in Elmira, but the housing market is poor now for sellers, so I was forced to continue renting. Probably for a couple of years. But at least that probably means the prices won't go up much in Elimira either in the meantime. Brits could always take that $2 sterling pound and buy in the US now for investment as well. It's a buyer's market right now! Strike while the iron is hot. Sid, you can buy to your heart's content as your budget allows in the US., and you don't need a visa. (Or has that been changed since that shoe-bomber guy??) Just hop on a plane. A lot of Brits have been doing that for years in Florida. I'd recommend a place like Elmira, NY or northern Maine, but I can understand that foreign investors like to rent out to Florida vacationers...and even visit themselves sometimes. Anyway, there are British real estate firms that specialize in selling Florida property to Brits. However, if I were you, I would do the following: (1) Google "lowest median house prices in the USA"). I came up with Elmira, NY area and Youngstown, Ohio area and the third one I forgot. As I mentioned, northern Maine is also very cheap and you can get acres and acres of forest/meadowland for a song. Make your own maple syrup! Long winters? Maybe...but it's not even in Canada yet and millions of people live well in Canada. Anyways, (2) go to www.realtor.com and select the towns you came up with. Be sure to choose "surrounding areas"under additional search options. (3) if you find properties that look attractive, the site usually mentions the listing agent. Go online to the various agents and see what they have in the area.

[cmp45]

Have a look at: www.mls.ca there are some interesting properties under multi-family for apartment buildings under 100 grand...especially in maritime regions such as New Brunswick. Just another alternative...

[tedkarma]

One difference between many western states and north-eastern states in the USA is PROPERTY TAXES. Relatively low in the west and SUPER high in parts of the NE.

A friend was looking at a rental property in NY (not sure exactly where in the state) and the property taxes were so high that the net income of the property after figuring in management, vacancies (which can be kept close to zero if done right), maintenance, etc etc - was almost zero. It was his deceased mother's home which was the only reason he was seriously looking at it - but as an investment it was worth nothing. Sentimental value was great - but reason and numbers won out.

I don't know the tax situation in Elmira - but my properties (in Arizona) have quite different tax rates even just between Phoenix and Tucson. Properties in Maricopa country will produce much better than properties in Tucson.

So . . . don't forget to check property tax rates - they have to be in the equation.

[Stephen Jones]

A standard ratio for monthly rent to purchase price in the States was considered to be around 120:1

In many places that figure now is around 300:1 or higher. What this does mean is that you are going to be putting money in if you take a mortgage and buy to let.

How many TEFLers are getting the kind of money they can buy US or UK property in cash anyway? I suspect those that have property rented out bought it before they became TEFlers

There are plenty of places in Canada and the States where you can buy real estate and land cheap, often cheaper than in Third World Countries. On the other hand these areas have little work available locally, which is why they are cheap. You could retire back there, but loneliness and health costs are two things to bear in mind.

[comenius]

I know that Malaysia has a residency visa specifically aimed at retirees. It also has some financial restrictions, but I don't think it has an age restrictions, meaning that if you wanted to retire early it wouldn't be a problem. Some other countries I believe place age restrictions on how young you can be to qualify for their retirement visas.

[tedkarma]

[globalnomad2]

Some are still saying do not buy a single-family house. However, as I've just posted, my four-bedroom, 2000 sq.ft. house in Houston which I paid off in 2001 was $98,000 and is rented out for $1300...for a 75:1 ratio. Property taxes are extremely high, though, at $4500 a year, because the house is now market-valued at $158,000. So if you bought it today and rented it out, your ratio would be 121:1. In certain small towns in Nebraska I can get a $70,000 multi-unit house with $1200 on property taxes. In northern Maine a $70,000 house tends to demand only $300-400 yearly taxes!

I don't know what the taxes will be in Elmira but at $66-69,000 for really good, large multi-unit homes (and single-family houses within the same price range) it's a great bargain, and the taxes have to be lower than what I'm used to in Houston.

In the Gulf Middle EAst, working at a university, certainly one can save enough to buy a $200,000 house in cash...maybe within 7 years if you're disciplined.

[globalnomad2]

To continue my last thought, of course no one would recommend simply saving for seven years for a $200,000 house. They price will probably go up by 25% or more, and your money is just sitting there.

[tedkarma]

[Sgt Killjoy]

I've heard good things about Uruguay. Relatively cheap housing, not a lot of crime, good medical care, stable democracy, relatively low cost of living. They give out permanent residence if you can show an outside income of $500 a month.

Investing in real estate, yes you get the appreciation and the rental income and it works for some people, but, and it's a big but, too many other variables enter the equation. I personally wouldn't do anything less than a small 5 or 6 unit apartment building......

Where to buy? I think it would be better to invest the money in rentals in your current place of residence so you can manage them for maximum return.

Unless you go to a country like Thailand where you are not allowed to own property.

And one other note about Thailand: 60,000 baht per month in income per person, you'll need to show 120k in income if your wife is not from Thailand.

[tedkarma]