Now, I think that we are witnessing a peculiar historical period of economic and financial turmoil worldwide.There should be therefore a different approach and a different solution. It appears that everything has originated by the general sub prime crisis in the real estate business in the USA.
Not long time after, many banks involved in such operation started declaring billions of dollars of losses.No mystery that also banks overseas got involved in huge losses as well. All problems were also magnified by the never ending weakness of the American currency.
The result now is that there are hundreds of thousand estates scattered across all American states at sale price.The dollar has lost almost fifty per cent of its par value with the euro and the real estate market has gone down at an average of 30 , 40 per cent in value.
Some areas like Detroit have lost up to 60, 70 per cent of their 2004 value. Other areas like Miami Beach have contained the loss within more reasonable limits. But in the end, if you are a prospective investor coming from Europe with euros available, you MUST come to the States and pick up among unlimited choices of fantastic real estate opportunities.
OK, now you have euro enough for a reasonable down payment, you have found a nice property, you just need a bank to grant a mortgage......That's where the time factor will play against the happy investor.....
But as mentioned at the beginning, you now need a different approach and a different solution.
Like when you arrive at an airport and you need a car, you are not supposed to go and look for a bank, apply for a loan, sign a purchase contract for the car and then...drive away. You just take few minutes to sign some forms and there you go with your car. You have just entered into an agreement with a company that owns that car.
Another situation comes when you are not at an airport, but you are in your own town and you need a new car.You are not going to apply for a loan in a bank, you go to a car dealer, choose whatever car and you lease it from the dealer.
Fast and furious!
The dealer will be always on your neck to ensure regular collection of the monthly lease payments. So why not with an apartment in Miami Beach??
Like Hertz, Avis, Dollar, Enterprise...etc.... that own thousands of vehicles and are ready to give one to you without passing through the very expensive bureaucracy corridors of a bank, why those big real estate agencies that practically own millions of properties aren't ready to grant the same type of opportunity? It is a fact that nowadays the interests on the American dollar is about to fall under 3 per cent. Why huge mega agencies cannot afford to grant loans at reduced rates direct, without mingling with banks and offer to the prospective European investors a fast selling procedure ?
This is a time like when you have a Thanksgiving sale or Xmas sale, when millions coming from Europe, invade the shopping malls in NY city to buy any type of goods, from fashion to electronics..... The same thing should now happen with real estate. Here's the biggest sale ever and you have millions properties available on sale but you don't want to adjust the system to such a completely new World Order...
A new approach and a new solution are necessary to make things move FASTER!!!! The euro cannot continue to be as strong indefinitely, and the dollar will not come so cheap for ever!!!
Another one year or so, and if you don't act fast, you'll end up with millions of unsold properties and millions of broken dreams for Europeans to own an apartment in the States....
The big dreamer
Real Estate Miami