Korean Job Discussion Forums

[fromtheuk]

I hope you are well. I have some excellent news.

I am buying my first property! Yippee!

I'm purchasing a house in Rochester, New York, USA. It has 6 bedrooms and 2 bathrooms. Every room has tenants so I will receive rental income immediately. The total net annual rent in UK pounds is £7500 (multiply this figure by 1.5 to get an approximate idea of what this figure is in dollars). I'm paying around $70,000 to buy this house but it was worth nearly $160,000 before the worldwide economic recession, in 2007.

The property will be managed for me by a property management company in the US.

I've signed the closing documents for this property. I've paid 90% of the money so far, it should be complete by next week.

After spending much of the first half of my life losing at almost everything, I now possess:-

An MA TESOL from a university ranked in the top 1% of all universities worldwide.

I own a total of twelve and three quarter acres of land in Texas, California and New Mexico, USA.

And I will own a 6 bedroom house in Rochester, New York, USA, for approximately $70,000.

I hope to buy a property in Rochester, New York, for rental income either every year or every two years! I'm 41 years young, divorced, without kids and preparing for my retirement.

Ladies and Gentleman: Please stand for the national anthem, we are all American now...

'Oh, say! can you see by the dawn's early....

[happyinhenan]

Well, may I be the first to offer my congratulations to you FTUK - you have come a long way in a very short time.

You have guaranteed employment until you retire, now a man of property, you enjoy your present country of abode - you have sorted out your life. There is nothing else getting in your way, when I see family and friends back home and their shitty miserable lives - you are doing well.

Massive congratulations and hope the property in the states works out the way you want it to.

[fromtheuk]

Many thanks. Do I know you by any chance? Nudge nudge, wink wink.

[happyinhenan]

[fromtheuk]

Thanks, back later on here and on email.

[PeteJB]

You'd only be able to get a small flat for that kinda price in the UK. Amazing.

[fromtheuk]

You're right there. My sister's first reaction was, 'Wow'.

[northway]

Not a knock on Rochester, but I think you could probably spend similar money -or slightly more - and get similar rental income in a city where the property is a lot more likely to appreciate. Pittsburgh, Kansas City, and Tulsa might all be worthy of consideration; these cities all have more vibrant economies, with significant growth potential. That said, if you're already in on Rochester and want to consolidate in a given area, that absolutely makes sense.

In any case, congrats.

[fromtheuk]

Thank you, northway. If I was an American, I would certainly have a much better idea of all the options available. Maybe, that's the next step........fromtheuk morphs into fromtheusa.

[PRagic]

I'm from NYS and have family in Rochester. In fact, my brother and his friends at one point had 6 properties.

I applaud the effort to plan and invest, but have to agree with the previous poster. First, NYS taxes are among the worst in the entire USA. Second, property prices rarely appreciate. The upside, of course, is that they don't necessarily depreciate much usually, either. Third, you're right smack in the middle of snow belt central, so you can look forward to spending on upkeep (roofing, boilers, siding, paint, etc...)

It is a great little city with lots to do. There are definitely worse places to live, and if you have relatives or personal connections there, it may make sense to invest there. If you're looking to maximize NET income from rentals, though, a you might want to give NYS a pass.

[fromtheuk]

Thank you for your input. I hear what you're saying. This particular property is expected to generate a net rental yield of around 11,200 dollars per annum.

A US colleague advised that I buy a house in Atlanta. I even considered purchasing a house in Wisconsin and Ohio. The truth is because I lack extensive knowledge of the US, I have to trust what various realtors have to say, to some extent.

[northway]

A very good friend of mine is one of the top agents in Atlanta. I've worked with him, and he's very knowledgeable, with an academic background in real estate, so he's got a better understanding of the rental market than most. If this is a direction you want to explore at some point down the line, feel free to shoot me a PM.

Generally speaking, I think Atlanta would be a much better place to buy than Rochester. I'd also look long and hard at Portland, Oregon, as many Bay Area giants are locating satellite offices there, due to low cost of living and similar culture relative to the Bay.

[PRagic]

Portland proper has been over priced for quite some time. Same could be said for anything worth buying in Atlanta. Long and short of it is that you need to put boots on the ground. Anyone buying through a realtor long distance has sucker written all over them. Sure, use them for knowledge and to set up potentials, but NEVER buy before you go and spend some time there, That's why I was curious as to whether or not the OP had a friend or relative in Rachacha.

[fromtheuk]

Thanks for your input guys. I have bought this property through a UK realtor with established US contacts, so that's what I meant by trusting a realtor, to some extent.

[SeoulNate]

Good luck dude, managing multiple properties from overseas is a pain, but worth it financially if you can find a few gems.