Just reading CNN and came upon this article. Australians are buying US rental properties in depressed markets as investments. Places include the usual suspects: in addition to Tennessee, which is featured, we have Florida and Arizona.
Could this mean that if you have cash (as the Australians seem to), the best thing would be to buy another house in addition to your underwater home bought during the bubble?
My mother's Florida condo, bought 16 years ago for the price of a Long Island ranch home, is now worth less than the initial cost, while the Long Island home, I'm sure, is worth much more, in spite of the bubble.
Somewhat facetiously, one could call this dollar cost averaging with real estate. The only problem, of course, besides the risk of any real estate investment, is that you need wads of cash. Which Australians do, evidently.
Is this a mad idea? Would you buy rental property in depressed markets if you had some cash?
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