in Florida. They are temporary until something comes along and blows them away. Not to mention 6 million alligators and horrible bugs, etc. etc. NO state income tax, though. How can you compare San Diego and Florida? Apples and oranges! Living in Florida is a terrible price to pay to save money (pardon the pun). Make more money and choose a better place in this great country.
You have to love a guy like this mired in his own Hubris! Both places are beautiful not to mention Aspen, Hawaii, etc. Imagine what he thinks about the poor souls who live in Peoria!
Does the American plumber, carpenter, or electrician etc have any great difficulties in getting onto the housing ladder? In the Uk it is now very difficult for a skilled working man to get onto the first rung of the housing ladder, which is why you now find many skilled persons looking at America, Canada, Australia and other countries where they hope to get on the first rung of the housing ladder, and still have enough of their wages left over to lead a decent life. Some years ago housing prices in the UK were linked to wages/prices of the local economy ( Thus wages were higher in London accompanied by higher house prices - the reverse was true for say Cornwall, Wales and Scotland). However the practice of buying second homes has destroyed that economic link. The Londoner pays the higher price for the country dwelling. Estate agents and sellers realize the city buyers will pay higher prices, push the prices up, thus pricing local working people ( who earn a lot less than the city buyer) out of the market. In France (Brittany), where there are a lot of second home owners, locals are reacting against the higher prices caused by the influx of second home buyers by posting "Brits Out" notices on walls of local Govt. buildings. Maybe a property crash or correction is on the horizon?
Interesting post, Toby. I knew that many wealthy Londoners liked to have country homes, but I wasn't aware that the practice was so prevalent that it had made that big an impact on the property market. Isn't it limited to selected areas, though? I mean, they aren't likely to want to buy former council housing in industrial areas. I would say in the US a skilled tradesman who is fully employed can easily purchase a house, although not in an expensive area. In fact, it is not uncommon for people in the building trades to buy houses that they rent out, since they can do the necessary maintenance work themselves and save money. It is unheard of in the US, except in the immigrant communities, for families to take in boarders, which used to be fairly common in the UK. One big reason things are different here is the question of supply. Outside of major urban areas, there is abundant land for housing tracts to be built on. In fact, if you look at the major homebuiling stocks, such as LEN, RYL, CTX, etc, you will see just how active builders have been. All that supply at least moderates prices.
Toby over the past 30 years of buying and fixing houses, I have met many skilled craftsmen who bought, sold, and the smart ones, held and rent out, as AAA mentioned. It pays to follow the rule to buy the worst house in the best neighborhood, virtually everything can be fixed on a home, but you can't move it to a great neighborhood! Obviously it is harder now with the escalation in prices and property taxes, but in a country with 300mill people on the move, opportunity is still out there. Prices do seem on the extreme, bah humbug to no inflation! One very negative aspect of living in the US is the health insurance. I know many self-employed or early retirees paying a bigger tab each month for health insurance than for their mortgage! Toby...check out www.realtor.com it gives you an idea of the wide range in any city or town you are considering.
Thankyou all so far, for the useful insights. Yes, second home ownership is on the rise (holiday homes) plus a growing number of "Buy to rent" properties which enable the owner to benefit from rising prices and have a rental income - useful if planning for a pension type income. It seems, as mentioned before, that local ( regional) wages no longer seem attached to house prices ( affordability) Are house prices in the States linked to local ( State) incomes?
And exactly where do you think your income taxes go? Have you ever wondered why the GBP is the strongest currency (if you can call that kind of scam a "currency")? The British empire is alive and well, but contrary to the Americans, they have adapted to changing conditions. They know it's not about soldiers and guns and lines on a map; It's about the money.