Singing Pig

Hi,

Has anyone invested in Buffalo / Western New York yet? Would be interested to hear your experiences.

 

Thanks,

Matt

propertyforincome.net 

Not an area that I think of as a good place to invest money Personally, I don't like areas of high unemployment. Lack of jobs means few can afford to buy. If no one can afford to buy, prices are low and stay low. Lack of jobs means renters can't pay rent.

Do your research and make a visit and look before you buy.

I seriously suggest that you also look at 5-6 other areas of America and compare what you could purchase in another area. Throw a dart at a map if you don't have any other states in mind.

If you still like Buffalo the best, then you have done your homework, and will more than likely be happy with your purchase.

A disclaimer: I only invest close to home and New York is a very long distnce from me. I don't have first hand knowledge of the markets in Buffalo, just what I hear from other investors (the guys who are doing it for a living, not the guys who are trying to sell it) 

 

While you are there, looking at actual investments, take the address into the local police station and ask them about the crime rate in that area.

I've looked at Buffalo and visited the place looking for property. Not a place I would invest personally. You should look at Syracuse and Albany. I have a couple of investments in those cities

 

Just wondering, do they have the DSS equivalent in the US? It just seems to me, the most obvious cause of these cheap property's is sub prime. So if they are the sort of property's that only those on low income could "afford" to buy, then it seems to me they could be the same type of people you would be looking at renting to. So if they lose their jobs, then who pays the rent/mortgage?

Am I being simplistic (or simple!!) - Does it matter if people cant afford to buy and prices dont go up? As long as the rent is giving a good return. Theres also the possibiity of making money by mortgaging when the dollar rises.

Hi there,

might I add my two cents to the discussion. I have invested in Buffalo. I live in Scotland so it couldn't be a more long distance investment.
 
The thing about Buffalo as previously mentioned is that it is a non growth area. It is not having a great time economically given the mix of its industrial  base  and work force.  There are areas of the town that  are  ghettoes of  very poor housing ridden with  drug users  etc etc etc. Some people have bought into these areas  through various means and come very unstuck. Some people have bought houses that were  essentially  condemned not long after purchase.  Because your average Brit doesn't know much about the US property market, some have relied on somewhat less than scrupulous wholesalers who pass on other peoples problems for a profit. That is the bad news.
 
The good news is that not all of Buffalo and certainly not all of WNY is the same. As someone said, Syracuse and many other towns near  the Lakes are great cash flow propositions. Someone mentioned the US equivalent of the dole and housing benefit paying the rent of your tenants - its called SECTION 8 and is operated in a similar way to housing benefit. Get the government to pay!

The key to any investing that you do is to have a good team around you. I have made so many mistakes, dealt with crooks and people who didn't have my best interests at heart. I now have that team. If you have someone  to  advise you re the housing purchase and someone to look after your house when you are not  there, you  are well on the way. Buffalo is not cool. But it is part of my plan - ie. buy in places where local people NEED to live. They will pay good rent but becuase the market is so  bad, prices are cheap, very cheap -  bargain on about $30-40k for an okish duplex which will  flow about $700-750 per month. This creates a good yield compared to UK returns.

I invest in other states in the US as well because I  feel NOW is the time to buy. When everybody else is selling. There are nay sayers to everything becuase that is the nature of  the human condition. I am positive about the WNY region but only because of cash flow and not capital growth. Choose carefully and get good  advice.

PM me if you'd like more info. No axe to grind. Happy to help.
 

Robin 

Big Boab:

I invest in other states in the US as well because I  feel NOW is the time to buy. When everybody else is selling.

Hi Robin,

I've been tempted by offers in Buffalo and Rochester.  Many are been being offerd by the likes of Ahuja & co and many others.  Could you expand on the areas you would invest in now in the states?  I came across a report which I thought was quite interesting and maybe a little better than "throwing a dart at a map"

http://money.cnn.com/popups/2006/fortune/invguide_realestate/index.html