dealing with the USA

is it just me or is dealing with the US really difficult? they seem so backwards that it's hard to believe they are the number 1 economic power.

Anyone else experience this?
 
is it just me or is dealing with the US really difficult? they seem so backwards that it's hard to believe they are the number 1 economic power. Anyone else experience this?

Dealing with the US is diffficult?

Are you talking about Edward Snowden? :)

Poor bugger. If he is caught, he will have a free place to live and need not worry about IPs for the next 40 years.
 
they need to be sure, across all local, state and federal departments - in triplicate for each - that you are not a "terrorist" or a plotting a "terrorist" act by wanting to trade with them.

i mean, if Islamic Fundamentalism is the current extremism, then National Security is the New Fundamentalist Religion in the USA - the belief that overrides everything in everyday life.
 
is it just me or is dealing with the US really difficult? they seem so backwards that it's hard to believe they are the number 1 economic power.

Anyone else experience this?

Anyone who has purchased properties in US will know that their banking system is archaic, these guys are still using fax machines, I placed my fax on front verge years ago, and no takers, don't understand why;)
Spent some time over there and they just don't seem to think outside the square, its hard work. Perhaps it's cos the average wage is around $8 per hour.

But are they really number 1 economic power???
 
Yep. Although I imagine in some ways same as here. Lived there for five years and most of my family are still there (not a seppo - did teen years there).

We've recently taken on a distributor ship with manufacturer in US - I've spent more time on designing forms and procedures for them than us out of frustration. Wonderful product, tries to give good service but omg I'm not sure how they got their orders right in the past. But have also dealt with a few Aussie companies like that.
 
Insurance.... what insurance

In USA you take out insurance for your property, but you are done like a dinner if you claim, cos no one will ever insure you again. You only claim if your house burns down, hurricane etc. Insurance costs are huge, on $80,000 property you will pay more than $1000.

Also the insurance companies have guys that check out your properties (external) to make sure it is being maintained I just paid $900 (US) because the insurer identified maintenance required on the roof, if I do not keep it to their standard, my insurance is cancelled. So they take it a bite both ways, CAN NOT CLAIM INSURANCE UNLESS THE HOUSE BURNS DOWN, AND THEY TELL YOU HOW TO MAINTAIN YOUR PROPERTY... WTF

I can not believe I am saying this, but thank god for Australian Insurance companies, I love them.
 
Hi MTR - I assume you have properties in the USA?

Would love to hear any other USA IP pitfalls you've experienced.
 
Hi MTR - I assume you have properties in the USA?

Would love to hear any other USA IP pitfalls you've experienced.

Hi David

I purchased 8 properties in Atlanta.

There are quite a few pitfalls, I guess those that I consider the biggies :

Time difference its a killer, I am up late at night some times to phone my PM etc.

Property management fees are costly, when a tenant vacates the PM company will retain/fee 1 month rental income, if the tenant renews lease they keep 2 weeks, this can hurt your cashflow.

Houses in Atlanta are not the same quality builds as in Australia, higher maintenance. As we purchased foreclosure properties, many were vacant for years, so there have been some issues, not major but none the less ongoing repairs for some properties. This slowed down considerably after 6 months.

Due to high unemployment I have had tenants lose their job and just walk away from the property, no rent and house requiring a makeover:eek:

I have held my properties for 2 years now and things have improved greatly. First 6 months was difficult in terms of cash flow.

My properties generate an income of around $55,000-60,000 pa and have increased in value a guestimate of around 25-30%.
Overall I would say a good experience, and would I do it again, absolutely.

Cheers
MTR
 
part of my gripe is insurance... the insurance co's bank doesn't have a swift number because 'they don't have an international desk' (!!) and the concept of a cover note seems quite alien to them
 
oh and I tt'd some funds over to someone else and their bank must have taken a $20 fee out... I must have got 6 or more emails going on and on about this 'short payment' of $20 and it would be added to the next bill... you'd think I had stolen the thanksgiving turkey, I mean seriously 20 bucks
 
Do you think the horse has bolted on this one? Or still good opportunities around?

How was getting finance? Did you have to use cash or low LVR loans?
 
Do you think the horse has bolted on this one? Or still good opportunities around?

How was getting finance? Did you have to use cash or low LVR loans?

I paid cash for all my properties total amount invested $520,000

This is one of my properties I purchased through Karina. I believe she is sourcing finance at 3% now. I personally think it is too late because you are already down as the Aussie $ is at 90, I was buying when it was $1.10. Also the yields are no way as attractive and unless you are buying multiple properties and treat it as a business I just would not do it.

Its all about the numbers, I would want 20% gross.

http://s1178.photobucket.com/user/s.../Belmont Ridge renovated/?albumview=slideshow
 
and yet they will cross the road to tip some bloke a dollar or two - someone they have never seen before and probably never will again

Try not tipping, you could get shot, and you know most like to carry one:eek:

Seriously, though I was told you must tip 10% -total bill.
 
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Great information MTR. Thanks for sharing. Kudos to you!

You are very welcome.

I have had many people contact regarding investing/buying in US, I always say the same.... 18 months ago was the time to invest in US for cash flow.

We have been experiencing growth in US for the last 18 months, just that most would not have known this as they were not watching this market. Now there is so much positive news that many now want to buy into this market expecting to achieve great growth, I think it may still be a bumpy ride.

The problem also is that you are competing with huge Super funds which are buying bucket loads and they are not at all worried about the yield, foreign investors around the world and now the US home owners are getting finance. I know that on many occasions there are more than 20 offers on one property. Its a very tough call.

I think the Aussie market is very interesting at the moment, in particular Syd, Perth:)
 
Agreed. It was the lack of equity that had held me back. I revalue every year and as soon as I get another 50k or so then BAM I get another Australian IP. I agree the USA thing wouldn't be worth learning the whole process just to get one 50k property.

Congrats on your achievements - who dares wins and you've done well.
 
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