I can answer this one, cash, foreign investors can not borrow, so you can use equity, some investors also used funds from SMSF.
The big one is do you buy in USA now that the Australian dollar has slipped back to 81, we were buying at over 1.00 even 1.09, however when bringing the money back its 20% up??
The yearly fixed costs are as follows.
Known as county taxes are dependant on the county assessed value of the property. These can vary greatly between properties. On average for Atlanta properties we target I would say between $800 - $1500 a year. County taxes can always be verified on the county website. This is public information.
Approx $800 a year
8% management fee
Letting fee - 1st months rent ( this is standard in the US)
1 weeks renewal fee
Standard lease is for 12 months. They do not offer 6 month leases.
HOA fees (equivelant of our strata fees)
Some properties have home owners assocation fees to maintain common facilities in a subdivsion. Can vary between properties on average I would say around $500 year.
LLC renewal fees - yearly
$50 to Georgia Secretary of State
$100 to registered agent
50 - 65k townhomes - around $750 - $900 month
70 - 100k houses - vary from $900 - 1295 month.
Water and Electricity
Paid be tenant in the US
Only time you would pay for utilities is when the property is vacant and you have the utilities on for renovations and showing the home for rent.
Most homes rent within 4 - 6 weeks on average. Some go quicker than this. Dec/Jan are slower months for rental.
Just wondering if any of you invest on duplex, or multiple units (above 4)?
Can you share any lights?
Ps: For US property market, I like biggerpocket. Watch the podcast like crazy.. They also have forum like somersoft
Thanks for posting Karina! I was looking forward to this post as well! What are you and people's thoughts on investing in America at the moment especially with AUD/USD people down?
Are you saying to also consider saving first while waiting for the next downturn and the opportunities that will bring?