Australian Dollar

Oscar said:
Hi MTR.

This is obviously very good for the Atlanta investments. Like a free rental increase of around 25% since purchase. :)
Click to expand...

Yes you are right

However I am seriously considering selling the lot when/if the Au$ falls back to 72, its been a great ride, however I have the power of lvr in Oz
 
Absolutely Scott, nothing is without risk.

Investors buying US property over the last 3 years probably got the timing right as the Au$ was trading as high as 1.08, and they were taking a punt or I like to think an educated guess that the Au$ would go back to traditional levels which of course is what we are seeing today.
 
To the victor the spoils

MTR said:
Absolutely Scott, nothing is without risk.

Investors buying US property over the last 3 years probably got the timing right as the Au$ was trading as high as 1.08, and they were taking a punt or I like to think an educated guess that the Au$ would go back to traditional levels which of course is what we are seeing today.
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To the victor belong the spoils.

MTR, you and several others here assisted by a long time poster/member had the courage and opportune timing that you took advantage of to enter that market at well over parity when you did and have enjoyed growth (not without management headaches I imagine) and the upside of a falling currency.

Nothing wrong with taking profits of all or some of your portfolio. I say well done to you and your cohort. Perhaps there was some luck however you all took calculated risk and took action.
 
Firm 81 today:) Anyone think it will be in 70s next year, I do??

Karina
Luvin' the cash flow as well, but the power of leverage is what makes me want to bring the money back home, will still have 18 month timeframe I think. $1M gives me opportunities to continue with more developments and make more money in Australia.

Also, my concern with my US properties is that they are all getting older and it wont be long and I know I will be up for new roofs major stuff.

Its a hard one as the cash flow is brilliant.

MTR:)
 
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MTR - are you basing the CF return at current values? Or purchase prices. With the $$ lower, you may be able to get similar returns by bringing the cash back? (Or not)
 
Blacky said:
MTR - are you basing the CF return at current values? Or purchase prices. With the $$ lower, you may be able to get similar returns by bringing the cash back? (Or not)
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Purchase Prices, not sure what you mean by this??

When I purchased the US properties approx. 3 years ago the gross rental returns for all were around 20%. At the moment I bring back $5000 per month from USA which forms part of my income the rest stays in US bank account. With current exchange rate I make $1000 profit per month.
 
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MTR said:
Purchase Prices, not sure what you mean by this??

When I purchased the US properties approx. 3 years ago the gross rental returns for all were around 20%. At the moment I bring back $5000 per month from USA which forms part of my income the rest stays in US bank account. With current exchange rate I make $1000 profit per month.
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What's the return based on current value/exchange rate. In % terms?

It might have been 20%. Now it's probably closer to 10% given the increase in exchange rates as value increases.

Blacky
 
Blacky said:
What's the return based on current value/exchange rate. In % terms?

It might have been 20%. Now it's probably closer to 10% given the increase in exchange rates as value increases.

Blacky
Click to expand...

But your rent is also increasing with th3 increase in usd...
 
Blacky said:
What's the return based on current value/exchange rate. In % terms?

It might have been 20%. Now it's probably closer to 10% given the increase in exchange rates as value increases.

Blacky
Click to expand...

No, the other way around, I purchased the properties when the Au$ was over 1.00, now am bringing it back at around 81, so my rental income has now increased 20%. Same as my initial base investment of $500,000, lets assume no growth whatsoever but 20% increase in value due to the drop in Australian currency.
 
MTR said:
No, the other way around, I purchased the properties when the Au$ was over 1.00, now am bringing it back at around 81, so my rental income has now increased 20%. Same as my initial base investment of $500,000, lets assume no growth whatsoever but 20% increase in value due to the drop in Australian currency.
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Sorry - I didn't explain myself.
I was trying to get back to a "todays" figure.

You put in $500k at Aud/USD 1:1 - with returns at 20% (USD $100k)

Today - given value increases your US properties are now ~USD$800k at 1:0.82 (or AUD$975). You still return US$100k (AUD122k) or 12.5% against the $975k (assuming rents haven't gone up?).

I was taking into consideration the increase in property values - though took a wild guess at how much they have gone up. The $800k might be +$1mil or sub $800?? only you know this.

I still think the US has more to move in both terms of capital growth and exchange rate - so if I was you I wouldn't be cashing in my chips just yet. But thats me.

Cheers

Blacky
 
Blacky said:
Sorry - I didn't explain myself.
I was trying to get back to a "todays" figure.

You put in $500k at Aud/USD 1:1 - with returns at 20% (USD $100k)

Today - given value increases your US properties are now ~USD$800k at 1:0.82 (or AUD$975). You still return US$100k (AUD122k) or 12.5% against the $975k (assuming rents haven't gone up?).

I was taking into consideration the increase in property values - though took a wild guess at how much they have gone up. The $800k might be +$1mil or sub $800?? only you know this.

I still think the US has more to move in both terms of capital growth and exchange rate - so if I was you I wouldn't be cashing in my chips just yet. But thats me.

Cheers

Blacky
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Oh I see. I am not too fancy with numbers unfortunately

Looking at recent values I think we would average around $120K per US property so perhaps roughly sitting at $900K.

Rents have not gone up. County taxes went down due to values of properties dropping, now they have swung back up.

I don't plan to sell just yet, I think you are right about this. I will wait at least 18 months, as am hoping property prices continue to rise and Au$ continues to fall so hopefully bring back over $1M after (CGT - 15% tax in USA) and re agents fees are (6%) :eek:
 
MTR said:
Oh I see. I am not too fancy with numbers unfortunately

Looking at recent values I think we would average around $120K per US property so perhaps roughly sitting at $900K.

Rents have not gone up. County taxes went down due to values of properties dropping, now they have swung back up.

I don't plan to sell just yet, I think you are right about this. I will wait at least 18 months, as am hoping property prices continue to rise and Au$ continues to fall so hopefully bring back over $1M after (CGT - 15% tax in USA) and re agents fees are (6%) :eek:
Click to expand...

Welldone MTR,

You're one of the savvy woman investor that I knew. Still remember when you shared a lot of knowledge on Atlanta thread.
You introduce us to Karina and lead us every detail. That's not luck, its above and beyond. Your wisdom knowledge lead result..

I think you may want to wait more than 18 months, let say 24-36 months..
Or you can sell half, and keep it for growth + cashflow
 
Hi MTR,

Maybe a dollar cost average approach, sell 2 a year for the next 3 years ?

Get some now and some later, USD is strong but what if we get another 911 but bigger?

The maniacs are still out there and the USA is the prime target
 
I get your point Macca, never know what can happen, but as the Au$ is trending south with predictions in 70s next year probably prefer to wait.

Thanks
MTR:)
 
Player said:
To the victor belong the spoils.

MTR, you and several others here assisted by a long time poster/member had the courage and opportune timing that you took advantage of to enter that market at well over parity when you did and have enjoyed growth (not without management headaches I imagine) and the upside of a falling currency.

Nothing wrong with taking profits of all or some of your portfolio. I say well done to you and your cohort. Perhaps there was some luck however you all took calculated risk and took action.
Click to expand...

Spot on.

Well done to Player for raising it ( I wasn't aware of it MTR)

And even better to MTR to have the guts to DO IT!!!!!

Plenty of 'armchair' theoretical opinions, on this thread (maybe from me, I haven't read again through all posts).

But again, a 100% big CONGRATULATIONS to MTR.

A fantastic deal, buy when the overseas asset when priced low, but even better when the local currency is priced high.

This will truly be a multi-bagger return.

I am so so happy for you.
 
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