Three or four years back there seemed a industry of people spruiking the cheap US housing that would make people millions. Ludicrous prices for cheap US homes and some thought this was a sure thing. Others suggested it was swamp land...poor areas, rundown dumps in areas you need a humvee to enter and good luck with finding a tenant with a job.
So where are they now ?? Anyone who has actually bought one (or ten) and since SOLD it ??
Paul, they (US property promoters) are still around just less of them and they are less noisy as the internet and bad reviews has caught up with them. In a way, they have went underground, there is no shortage of promoters out there promoting Atlanta.
There are still seminars (yes US SMSF Property Seminars by unlicensed promoters), however I believe the message has come across that you may get a high yield, but what about the costs (travel/ structuring/ PM). We have a blog on our site that covers these considerations.
There are still houses selling for $5k, BUT don't be fooled, property is cheap for a reason, and mostly in slumlord areas. There are a heap of horror stories of investors having their rent stolen by a PM or the promoter stealing the cash as a whole.
I have seen promoters focus on Finance for US SMSF property - which is real complex, with major risk of breach if not done correctly. I have seen an investor charged $30k before even buying the property (which was a $60k property in Atlanta).
I just hope Investors are educated on the risks and benefits of US property before they make the move to invest. With SMSF, if they are not set up correctly it can be a disaster and has been an ongoing focus area of the ATO over the last few years.
To answer your question, I have one client who invested in Pheonix and is winning, same as another with commercial and has one. I will emphasise both of these clients are sophisticated investors who done the research up front independent of commission driven promoters.
Cheers Ivan
