Expat Working abroad investing back in OZ

[Sergio]

Does anyone in this forum work overseas and continue to invest in IP back home?

A few questions for all you expats working abroad!

How do you go about it?

Would you trust someone who has stock from developers?

Have any of you employed the services of a buyers agent?

Any ideas or suggestions are welcomed. We are planning in buying another IP but not sure how to go about it while overseas.

 

[Rolf Latham]

Hi Sergio

I have many an offshore client and many use buyers agents.

Mostly though they use recommendations by friends, relatives ad fellow investors, often backed with a brief visit to finalise a purchase

ta
rolf

 

[Splinter Wood]

Hi Sergio,

Have exp. in the area you request.

1. Tax - if not already, you probably should be registered as NON-RESIDENT in Australia for tax purposes assuming you are out for a reasonable time.

As such your foreign income should not be assessable in OZ. The double edger here is you will be on the top tax rate for any income generated in Oz. As such, generally head for the -vely geared IP.s

2. Agents - I have successfully used an agent in Sydney for 3 purchases. All went well. One I didn't even see. He bought , renovated and sold within 3 months ! (In hindsight I should have listened to him and kept it - but I still made $30,000 nett in 3 mths for making 6 phone calls).

Botton line here is find yourself a good trustworth agent and be a good client - let them do what they do best.

The current market is making it tough to find the returns these days but I suggest to buy based on the numbers. Buy high quality, in highly tenanted areas. Also try for apartments as they are lower maintenance. These areas would be mainly inner or near inner city, harbourside or waterfront areas.

In essence you might ended up buying a more expensive property than anticipated but as long as the numbers stack up, you should be fine. I write this because many friends went back thinking to spend $500-$600K but spent $900 - $1.1M after some cajoling, and they have done exceptionally well as a result.

Your OS income is probably much higher so the banks should be ready to throw lots of money at you.

Hope this helps.
SW

 

[Sergio]

Hi SW,

Thanks for the reply.

In regards to the Tax that's done. I'm also going after the -ve properties as it will help me with my taxes later on down the track. I'm also thinking in buying 0ff-the plan to capitalize in Capital growth, although that is never guaranteed of course.

I'm very keen in buying waterfront or harbourfront IPs as the next purchase. Might cost a mint, but it might deliver the hot cholocate and the mint afterwards. Who knows!!

Do you mind if I contact this agent of yours? How does he get paid? From the developers? Can you honestly speak high of this individual who contentrates on individual investors as their client base, even though he gets paid by the developers. Just trying to be cautions as there are lots of Sharks out there!

BTW where are you working, city and country? I'm based in Switzerland at the moment. Top spot.

cheers
SA

 

[stargazer]

Hi Splinter Wood

I was interested in your comment to buy inner city apartments.

I am contemplating selling my townhouse in the inner city as there seems to be alot being built.

The general consensus is that there is an oversupply in some cities and other cities are catching up and are tipping into the oversupply stage.

I am in Adelaide and there is a lot of apartments going up at the moment and oversupply is touted alot.

I was curious what made you indicate inner city apartments apart form the maintenance factor. The experts are indicating a possible 30-50% correction in this market.

regards
Bonecrusher

 

[Splinter Wood]

HI Bonecrusher,

As I'm not really familiar with Adelaide, can't really offer specific advice.

It really depends on whether you have a 'higher' end property or not. Generally, the good quality stuff will retain good tenants with solid rentals.

These properties are less affected by turns in the Market and oversupply of apartments as many seem to be predicting or warning. I think the inner city apartments will alway do well if the properties are good quality. If there is turn, it will be caused by Interest rates going up, not over supply.

I think we will see the 'Manhattanization' of our cities increasing rapidly. If you are not familiar with the term, an increase in people who want to live 'IN the city. Usually, younger professionals, or unencumbered types, often no car and working in the city. Our cities took a while to get into that phase.

Bottom line is there will always be a market of buyers wanting to move into the cities and they will pay the higher $$ to get the right place.

I had a poorer quality property very close to city centre but after 7 years, I made less than a lower Nth shore unit did in 18mths !

So best to evaluate your place first and look at valid reasons why you should sell. If you have a 'dog', then by all means, dump it and cut your losses. If it's doing OK, think carefully about selling.

Good Luck
SW

 

[Sallyr]

Sergio,
I am new to this forum but have been in IP for around 4 years. I have just completed purchasing a townhouse for my daughter who is expat ( currently in US) . Working out the tax issues, return, etc
Would be happy to help you if I can - pls email me at
[email protected]

ciao
Sallyr

 

[Sam_H]

SA

Hows things geezer?
We are struggling with the work load without you over here in oz!

Lemme know if you want me to check anything put for you back here -be happy to help

Cheers buddy

Sambo

 

[Sergio]

Sambo,

Small world yeah!!

Great hearing from you mate. Send me an email privately, would love to have a chat.

Send your home details also.

Cheers
SA