Exploring the 100,000 House Market: A Comparative Analysis
When it comes to finding a house priced at around 100,000, the search can vary widely depending on the location and local market conditions. Across different regions, you might find that a "low-cost" house can mean quite different amenities and quality. Let's explore some real examples from around the world.
A Common Reality: Eventual Collapse in Listing Prices
Consider a town where a house listed at 215,000 has been reduced to 199,000 after five months on the market. This particular property is a 2-bedroom 900 square foot ranch house on a half-acre lot. Despite the price reduction, it's far from a sought-after property. The kitchen is outdated, the bedrooms are carpeted, and the bathroom hasn't seen an update since 1989. Additionally, it's right next to a large dairy farm, which isn't the most pleasant living proximity.
It's worth noting that in many locations, especially closer to major cities like NYC, you still won't find much to your liking for less than half a million. Most active listings are between 500,000 and 1.3 million, and even if you want to spend less than 200,000, your options are limited to empty lots. The mere listing of a house for 200,000 in such an area is indeed an anomaly, showcasing just how competitive the local real estate market is.
The Real Estate Market in Vietnam: Affordable and Investment-Oriented
Contrarily, in places like Vietnam, particularly in Go Cong Tien Giang, where I now reside, a 100,000 USD house can still be quite affordable, although it won't get you the amenities and space of a house in a U.S. city. In Go Cong Tien Giang, a 3000 square foot, 3-bedroom, 2-bath house with a front and back yard, and both a living and family room, and a den can be purchased for less than 100,000 USD. This cost-effective solution is achievable for many, especially with the current real estate market trends in the region.
In Go Cong Tien Giang, most houses for 100,000 USD can be found, but not the high-end houses, which tend to go for over 500,000 USD. Even building lots, typically around 115 square meters or 1200 square feet, can cost 86,000 USD. Such high costs make it economically unviable to build a small house. Instead, this amount can be invested in a development company, turning it into a 1000,000 USD within 13 years, with a 100% return on the initial investment. This leaves you with two 1200 square foot living units, each worth 149,500 USD, which is a significant return.
Investment Opportunities and Retiring Abroad
For U.S. citizens looking to retire in Vietnam, you can invest your money and choose to live in one of the units, rent or sell the other, and earn an income. As a U.S. citizen, you are allowed up to 95,000 USD in non-taxable income in the U.S. if you are a non-resident, and you can earn additional income in Vietnam without being subject to income tax. This offers a tax-free living opportunity that many find appealing.
The combination of affordable housing, investment opportunities, and the potential for a tax-free retirement in Vietnam makes this a unique market worth exploring. Whether you search for a small town in a more rural setting or a bustling city, there are opportunities to find a property that suits your needs and budget.
Explore the 100,000 house market with an open mind and a bit of research, and you may find that your dream home is closer than you think.