Investing in the uSA

R

rookie

Does anyone know much about this? I read an article in API about a couple who have invested in some properties with incredible rental yields in regional USA. Any ideas? Pros and cons?
 
Hi Rookie,

There is so much to talk about on this topic. I am currently in the business of sourcing these deals for Australin investors. I would be happy to dicuss with you what I know. I am also flying over there in October to purchase some deals for myself.

You are welcome to give me a call on 0409219930 if you would like to have a chat in more detail.

Regards

Chad
 
Usa Investing Pro's And Con's

Hi Rookie,

Like any investment there are pro's and con's.This is no different to investing in the States.It all comes down to research and doing your due diligence in order to minimise your risk.The key to your success in making it in the USA market is to build up a trustworthy relationship with the right people over there with the right skills and knowledge in the areas you are planning on investing in.
People with A sound knowlege of the market is important to be able to distinguish a good deal when it presents itself.Without this knowledge you wont really know if the property is good value or over priced etc.
Things are very different over there.You can have good and bad areas within afew blocks of each other AND safe and unsafe streets within blocks of each other.So local knowledge is crutial.

Property Management: This in my opinion will determine success from failure.Good property management services are few and far between.Buying the house is the easy part.What happens with it and how it is looked after will lie in the hands of who'm you choose to manage it.

Other important contacts to establish would be financiers/brokers, a good attorney, property valuers and building inspectors to give a a report of the condition of the property if you choose to use one.

Finding the right team of these guys will put you in good stead for success.

Yes the yields are fantastic and I believe the opportunities over there are fantastic. I dont know of anything that can currently give me 15-25% ROI with purchase prices in safe investing areas starting at around 38k USD.Anyone interested in +CF returns as part of the portfolio should definately at least take the time to do some research on it and then i guess make up there own minds.

For me personally, I am in the process of cashing in on the investments I have in Victoria and putting my investment dollars in the USA market.

I hope this was of assistance to you.

Regards

Chad
 
hey chad,
not questioning your choice here...but i think you mentioned in one of ur previous posts that you have bought a new block of land with intention of building in the outer melb...
just curious about ur strategy...
 
I live in California. Right now the real estate market is out of control. A few months ago, in the area I live in, the average price of homes went up $25,000 in one month. You can imagine if you had the money to buy several home, rent them, and then sell them while the market is high how much profit you could make as long as the market stays high.

My parents house has doubled in value in only 3 years. I think nearly everyone home in this are has.

Also, in Las Vegas, NV, the market is crazy. They are building new homes all over and pre selling them. You can buy a house while they are still building it, and by the time it is build you can resell it for a large profit. The market there is also a little cheaper, so it is easier to get into.

I know this since a lot of my family lives in Vegas. My one cousin does loans out there and is doing pretty well for herself.
 
There's been a lot of talk about investing in the US recently ... yet I recall reading that the market there is overheated.
Is it a case of the smart money is already in and now it's the mugs' time ?

Comments like those of jlmnop10 just seem to support the late in the cycle theory.
 
Patosan,

It depends where you look. Where Quiggles has invested for example, around Buffalo, there has been virtually no growth for the past 20 years. From what has been written there are other problems, but not overheating.

Regards
Alistair
 
Hi Guys

An article about housing affordability in Buffalo.

Buffalo, N.Y. Rated Most Affordable Major U.S. Housing Market

RISMEDIA, Aug. 26, 2005 — The metropolitan statistical area comprising Buffalo and Niagara Falls, New York is the nation’s most affordable housing market among major metros with populations more than 500,000, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) for the second quarter of 2005.

Also near the top of the affordability scale among major metros with populations more than 500,000 were Indianapolis, Indiana; Dayton, Ohio, and the area encompassing Youngstown, Warren and Boardman, Ohio-Pennsylvania, in that order.

Ohio scored the greatest number of major metros on the top 10 list, with a total of four (including Dayton, Youngstown, Toledo and Akron). The state also had three of the 10 most affordable metro areas with populations under 500,000, including Mansfield, Lima and the area comprising Canton and Massillon, Ohio.

Overall housing affordability across the United States fell for the second consecutive quarter, dipping 4.2 points to 45.9 on the HOI—meaning that approximately 46% of new and existing homes sold in the second quarter were affordable to median-income families. This decline was mostly attributable to a 7% gain in the average price of homes sold in the year’s second quarter versus the first quarter.

“One very positive factor was favorable interest rates, which continued to fuel prospects for homeownership in the second quarter,” noted Dave Wilson, a custom home builder and NAHB president. “That said, housing affordability is increasingly an issue in markets nationwide, and local governments should do all they can to keep fees and regulations from adding too much to the cost of homes.”

In the most affordable major metro area of Buffalo-Niagara Falls, nearly 90% of new and existing homes sold during the second quarter were affordable to families making the area’s median income of $57,000. The median price of homes that sold in Buffalo during the second quarter was just $75,000.

Meanwhile, in Los Angeles-Long Beach-Glendale, California—the least affordable major metro with 500,000 or more people—just 3.6% of all homes sold were affordable to those making the median income of $54,500 when the median sales price was $461,000.

California once again was the least affordable state overall, with eight out of 10 metros on the least affordable list among markets with more than 500,000 people and nine out of 10 metros on the list for markets under 500,000.

Editor’s notes: Due to recent changes in the way that the federal government defines metropolitan statistical areas, some metros previously ranked by the HOI may have been absorbed into other metros and not have their own individual rankings. To find out where each city included in the HOI now falls, visit www.nahb.org/hoi and click on “New Metropolitan Statistical Area Definitions.”

The NAHB/Wells Fargo HOI is a measure of the percentage of homes sold in a given area that are affordable to families earning that area’s median income during a specific quarter. This is a reinvention of the popular NAHB affordability index that was discontinued after the first quarter of 2002 due to budgetary constraints.

While similar to the earlier HOI, the index now incorporates newly revised HUD data for household income, which was previously underestimated in some markets, and revised property tax and insurance data in several metro markets. Prices of new and existing homes sold are collected from actual court records by First American Real Estate Solutions, a marketing company. Mortgage financing conditions incorporate interest rates on fixed- and adjustable-rate loans reported by the Federal Housing Finance Board.

The NAHB/Wells Fargo Housing Opportunity Index is strictly the product of NAHB Economics, and is not seen or influenced by any outside party prior to being released to the public.

Please visit www.nahb.org/hoi for tables, historic data and details.
Click to expand...

News source:
http://www.rismedia.com/index.php/article/articleview/11523/1/1/

Regards
 
Hi HKR,

I purchased the land in Pakenham over 12 months ago with my business partner with the view of Him and his wife leasing it back from our joint trust.They reside in Europe and were looking for a base when they come back to Melbourne.. This was before I knew much about the opportunities in the states. However I still believe it is a very good area for a capital growth investment. There is an enormous amount of construction and infrastructure happening in the area which will definately benefit home owners/investors with good growth.

It just so happens that we have both agreed for them to take ownership of the land in their personal names, so we can free up our cash to invest in the states.

Regards

Chad
 
Hi Redwing,

Westan is planning a trip. It commences on the 16th Oct - 22nd Oct for anyone interested. I am meeting up with him after the 22nd in which we will be working very closely with our contacts over there to source good deals. We are going to purchase property for ourselves as well as source properties for others.

Regards

Chad
 
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