Wow....well done!
Buying in Atlanta
- Thread starter MTR
- Start date
Wow....well done!
The $1m was just to illustrate. People here like bandying about big numbers on 'examples'. My nicest one from a few (3-4?) years ago was $60k down to get bank appraisals today (not estimates or offers but appraisals banks will finance on) of $500k more and rental increases in the same time frame of $900+pm. And that's just the rental increase, which has just started to take off in a way I havent seen before. It's easy to say 'I think it will', but when it actually massively exceeds what once looked pie in the sky it's hard not to get a little excited. Horses for courses, Atlanta was one of the very last gasps of sub prime and a pond that always had a very limited expiry date. Atlanta 'type' properties are also VERY expensive to maintain. If you bought in the '08-'10 time frame and didn't triple your money (especially in $AUD terms) then there were better buys out there. No one goes broke making a profit though....
Here's to $0.48 again
Here's to $0.48 again
I doubt the OP will answer. Do a search, there's plenty of info there from quite a few members who have been successful over there.
Thanks Skater, yes I did run through the thread a little while bag but I think I ended up putting it in the too hard basket.
Probably worth a revisit, perhaps it would be interesting to analyse the various opportunities available, not only from distressed sales, but the market in general and how much it yields as well as the rules of the game (borrowing structures, accounting and taxes etc)
I remember reading many posts from Karina with a keen interest. I know she has implemented the Aussie property management model to the US and that is awesome. I can't remember if anyone here has used her services? I remember reading MTR and HandyAndy (if I am correct) have done well with US properties.
Something that has been of interest for sure.
Probably worth a revisit, perhaps it would be interesting to analyse the various opportunities available, not only from distressed sales, but the market in general and how much it yields as well as the rules of the game (borrowing structures, accounting and taxes etc)
I remember reading many posts from Karina with a keen interest. I know she has implemented the Aussie property management model to the US and that is awesome. I can't remember if anyone here has used her services? I remember reading MTR and HandyAndy (if I am correct) have done well with US properties.
Something that has been of interest for sure.
Gentle chief has a thread on his purchases in Atanta very interesting, view his photo gallery very impressive. I think his Income is about $200k gross,pa.
I know he flew over and did all the ground work and purchased his own properties, he did very well considering all the spruikers selling lemons at this time
I know he flew over and did all the ground work and purchased his own properties, he did very well considering all the spruikers selling lemons at this time
Never thought I'd look at this again, but it was interesting to see the washup after a few years. Good to see a heap of people did well and avoided the shonks. The US market is far from overplayed, in the last 3 months my properties have jumped 30% rent across the board and show no signs of abating. It's insane really, just six months ago we were lucky to get $800pm for properties we now get swamped at $1100 for. Sure subprime is over, but there is massive growth still to come if you don't want to repatriate money. I just got a firm offer of US$1m above purchase on a property I put down $155k on a few years (3?) ago - it's just starting to move properly and I am FAR from alone. Can't see it's worth selling atm but it's nice to know it's there. My sister (from memory emma171??) hamstrung herself doing the legally safe thing getting licenced as a US broker to deal with Aussies in US property, but in the commercial realm she is personally kicking serious ***, almost embarrassing how well. And.... for an Aussie, the dollar is now moving the right way. I don't particularly like the US, but it really is the land of opportunity. If you aren't desperate for the money and have a bit available on the US side of the big pond, have a look around outside the subprime world. Subprime was always that. Below par property. The market is huge, the opportunity enormous. So what if the market has changed from 'once in a lifetime' to merely 'extraordinary'? Sure beats Australia which shows every sign of being 'fully priced' and add to that the $AUD is far more likely to to fall rather than rise. In real terms my $AUD property has just lost 30%. The RBA saying the Aussie market is risking overheating, the $AUD dropped 30% in so many months and people are bringing money back?? The party could be seen as just starting to kick into gear
And finance has always been available. It's a lot easier now through official channels, but it was always possible one way or another.
Thanks for your post Lawjs,
I feel like a kid in a candy store here in Ohio.
Not much movement here regarding growth but its a very stable cashflow market.
Anything within close proximity to good schools, hospitals or Universities will rent like hot cakes. Takes time to adjust to the differences off course but its fun times as we are now working more with investors from the US than out of country investors haha
Thanks
ps. Looking forward to that $AUD dropping even further lol
Grrr......I'm not! While it's great for all you US investors, its not so great for my imports.
Hi Engelo
Be interested to see some of the properties you are sourcing, can you post any here?
Also, with the Au$ dropping means if you do not have US$ your clients will be paying 25-30% more. I would have thought this would turn people off.
Thanks
MTR
Engelo gets it... It's exciting to be part of and it IS just starting to take off..
My take:
http://la.curbed.com/archives/2015/03/housing_crisis_los_angeles_construction.php
If you have ATL properties, think about ditching the headaches and get where the maintenance issues won't completely murder your returns. You are 20% up so far on currency plays alone, don't just give up on the whole market because one little city is a dog from a cashflow and management perspective. Nowhere is perfect, but ATL was the last of the last gasps of subprime for a good reason. You caught a great wave, don't jump off just as you are getting the ride. FWIW my broker in LALA land has very good reason for saying this rebound will match the rebound in the early '70's which was 400%. Yes you read that right. The early '80's boom was 190%. He won't predict higher than the 400% but he is confident to say everything feels the same and 'thinks' 200-400% in the next 5-7 years. If you were lucky enough to get into LAS you will know it has very few of the 'problems' of ATL, but like all the subprime markets the rentals are stagnant especially now because the market is FULL of 'investors'. In the last 3 months in my little pond I have seen 25% growth in rentals. Before you crystalise the currency gain have a look around. The US market is starting gain massively and the $AUD is just starting to suffer from the exemplary leadership the Rudd Gillard Rudd Govt. gave us.
My take:
http://la.curbed.com/archives/2015/03/housing_crisis_los_angeles_construction.php
If you have ATL properties, think about ditching the headaches and get where the maintenance issues won't completely murder your returns. You are 20% up so far on currency plays alone, don't just give up on the whole market because one little city is a dog from a cashflow and management perspective. Nowhere is perfect, but ATL was the last of the last gasps of subprime for a good reason. You caught a great wave, don't jump off just as you are getting the ride. FWIW my broker in LALA land has very good reason for saying this rebound will match the rebound in the early '70's which was 400%. Yes you read that right. The early '80's boom was 190%. He won't predict higher than the 400% but he is confident to say everything feels the same and 'thinks' 200-400% in the next 5-7 years. If you were lucky enough to get into LAS you will know it has very few of the 'problems' of ATL, but like all the subprime markets the rentals are stagnant especially now because the market is FULL of 'investors'. In the last 3 months in my little pond I have seen 25% growth in rentals. Before you crystalise the currency gain have a look around. The US market is starting gain massively and the $AUD is just starting to suffer from the exemplary leadership the Rudd Gillard Rudd Govt. gave us.
lawsjs
Congratulations on your success in LA.
Never looked at LA because it was a much higher entry level at the time and I was chasing cash flow. As a foreign investor I could not LVR/source finance so for me it made no sense whatsoever.
USA was a great opportunity, but at the end of the day you needed to buy the right properties and the more the better to make it work. I am sure there are still plenty of opportunities out there.
At the time Atlanta was lower entry level, had good numbers, buying at 1.00-1.10 $Au, and properties sourced were directly from Bank not paying all the scammers their cut and not buying dodgy stuff in the hood.
If anyone is holding rubbish then they should be offloading, these are the properties that are in the wrong areas and are possibly vacant most of the year.
Don't plan to sell any of the Atlanta properties even though they have achieved extraordinary growth, as I live off this income. Property management is good and just seems to be ticking along nicely.
You are right the rental returns in Atlanta have remained the same, however as the Au$ is now at 75-76, I am bringing around 25-30% additional income per month US$ to Au$, making currency play very attractive.
Have you read posts by Gentle Chief on Atlanta, he purchased around 13 did it himself and I think he is generating around $200K+ income pa. An interesting read.
MTR
Congratulations on your success in LA.
Never looked at LA because it was a much higher entry level at the time and I was chasing cash flow. As a foreign investor I could not LVR/source finance so for me it made no sense whatsoever.
USA was a great opportunity, but at the end of the day you needed to buy the right properties and the more the better to make it work. I am sure there are still plenty of opportunities out there.
At the time Atlanta was lower entry level, had good numbers, buying at 1.00-1.10 $Au, and properties sourced were directly from Bank not paying all the scammers their cut and not buying dodgy stuff in the hood.
If anyone is holding rubbish then they should be offloading, these are the properties that are in the wrong areas and are possibly vacant most of the year.
Don't plan to sell any of the Atlanta properties even though they have achieved extraordinary growth, as I live off this income. Property management is good and just seems to be ticking along nicely.
You are right the rental returns in Atlanta have remained the same, however as the Au$ is now at 75-76, I am bringing around 25-30% additional income per month US$ to Au$, making currency play very attractive.
Have you read posts by Gentle Chief on Atlanta, he purchased around 13 did it himself and I think he is generating around $200K+ income pa. An interesting read.
MTR
