Subtitled “If it sounds too good to be true…”
Economist Mish Shedlock wrote about investors in Australia being pitched “hot property deals” in Phoenix.
Here’s the short-answer version:
First Rule of Investing
Hello Greg, the cardinal rule in investing is "If it sound too good to be true, it is."
This is what I want you to ask your friend
- What the hell can you possibly know living in Australia about this operation and alleged opportunity, that locals in the US who avoid this like the plague don't?
- Have you ever managed rental property or been a landlord before?
- Have you ever managed properties 7,500 miles away?
- Do you know anything about water problems (lack of it) in Phoenix?
- What makes you think those growth estimates are accurate?
- Do you know anything about the city's fiscal problems, other problems?
If these deals were any good, it would not take someone 7,500 miles away to spot them! However, it might take someone 7,500 miles away to get suckered into one.
Yes, prices in Phoenix are amazingly low, compared with the last decade.
Yes, interest rates are amazingly low, compared with the last 40 years.
Yes, housing affordability is near all-time highs.
But that doesn’t mean you can throw a dart & pick up a smoking-hot investment.
Your here to help Realtor,