Steve McKnight buy's 30 properties in the US
- Thread starter Platnicka
- Start date
Specifically the thread Buying in the USskater said:
Hi all
aceyducey to reply to your questions
I've always been interested in buying for cashflow (and capital growth), firstly in Oz then in 2003 in NZ. The market rose so much in NZ i started looking for new areas. A friend from Queensland, Dave Williams first mentioned the USA to me in early 2004. (actually someone mentioned Buffalo to me about 4 years ago and i never looked in to it). I was amazed at the high returns and started to reseach the USA. I worked with Dave and another guy, Mike Creed and we shared lots of info and researched different cities, many of which we decided not to invest in. My first investment in the USA was in Texas (where i am buying forclosures and flipping, with my team there). As far as market intelligence, i used the Net and spoke to lots of people in the states. Now i own in Texas and New York State.
Since Nov 2004 i've been to the USA 3 times and speat over 13 weeks there in total. Yesterday I got back from 8 weeks there. Most of my future investing dollars will be in the States
regards westan
aceyducey to reply to your questions
well according to Quiggles post in this thread he bought over the NET. There are great dangers with this practice as i outlined before and something someone should never do unless they have a trusted team on the ground.
I've always been interested in buying for cashflow (and capital growth), firstly in Oz then in 2003 in NZ. The market rose so much in NZ i started looking for new areas. A friend from Queensland, Dave Williams first mentioned the USA to me in early 2004. (actually someone mentioned Buffalo to me about 4 years ago and i never looked in to it). I was amazed at the high returns and started to reseach the USA. I worked with Dave and another guy, Mike Creed and we shared lots of info and researched different cities, many of which we decided not to invest in. My first investment in the USA was in Texas (where i am buying forclosures and flipping, with my team there). As far as market intelligence, i used the Net and spoke to lots of people in the states. Now i own in Texas and New York State.
Since Nov 2004 i've been to the USA 3 times and speat over 13 weeks there in total. Yesterday I got back from 8 weeks there. Most of my future investing dollars will be in the States
regards westan
Depends on where they were bought. I have friends who live about 4 hours drive west of NYC, and they bought a few years ago. I asked them what has happened in their town, and they said "prices have climbed very slowly, since the late 1990s". They didn't boom, and they didn't bust.
It's the x-rate that matters !!!
Well.... in 2005 (when this thread started) the AUD was worth about 75 US cents.
Today, April 2011 ... it's worth 105 US cents. (USD1.05).
So, in terms of the AUD value these properties would have to appreciated 40% (forty percent) just to make up for the x-rate losses.
I doubt this has happened. And this trend will continue as long as they keep the USD printing presses running (aka QE) ....which could be a long while yet.
Best hope for Steve is that they're cash flow positive !!
LL
Well.... in 2005 (when this thread started) the AUD was worth about 75 US cents.
Today, April 2011 ... it's worth 105 US cents. (USD1.05).
So, in terms of the AUD value these properties would have to appreciated 40% (forty percent) just to make up for the x-rate losses.
I doubt this has happened. And this trend will continue as long as they keep the USD printing presses running (aka QE) ....which could be a long while yet.
Best hope for Steve is that they're cash flow positive !!
LL
I understand Steve sold these. He did these with David Bradley from memory.
From recent chats when he does the rounds he purchases using AUD cash therefore unencumbered.
I made a thread a long while ago saying AUD would wipe out any US gains to which I was crucified on, this is exactly what I was saying, and I see AUD going strong against the USD.
Good time to import something though like a RHD Lamborghini, or any other goods as a a matter of fact.
From recent chats when he does the rounds he purchases using AUD cash therefore unencumbered.
I made a thread a long while ago saying AUD would wipe out any US gains to which I was crucified on, this is exactly what I was saying, and I see AUD going strong against the USD.
Good time to import something though like a RHD Lamborghini, or any other goods as a a matter of fact.
I understand Steve sold these. He did these with David Bradley from memory.
From recent chats when he does the rounds he purchases using AUD cash therefore unencumbered.
I made a thread a long while ago saying AUD would wipe out any US gains to which I was crucified on, this is exactly what I was saying, and I see AUD going strong against the USD.
Good time to import something though like a RHD Lamborghini, or any other goods as a a matter of fact.
spot on nathan - importing and travelling is a very good thing now. Bought another bifold door at 20% cheaper than what i would normally buy.
Good work mate!
New reno project hey?
I will need some of them when I build my HOME later this year... Similar to this
http://www.realestate.com.au/property-house-nsw-luddenham-107237036
I understand Steve sold these. He did these with David Bradley from memory.
From recent chats when he does the rounds he purchases using AUD cash therefore unencumbered.
I made a thread a long while ago saying AUD would wipe out any US gains to which I was crucified on, this is exactly what I was saying, and I see AUD going strong against the USD.
Good time to import something though like a RHD Lamborghini, or any other goods as a a matter of fact.
Perhaps now is the time to be thinking about buying a US property with AUD. Surely it can't go much higher, and longer term is likely to subside a bit.
The article stated 30 properties costing US$800k about AU$1M. That works out at to just AU$33.3k each. I think at these prices they have not dropped too much, maybe even risen.
Just had a quick look on zillow and anything at that price seems to need renovating. Without knowing what Steve bought, I would guess renovating 30 properties in US from Australia is not a great idea. So if they were in good condition, they probably have increased in value.
Is the US is getting rather concerned about the number of properties being bought by foreigners? If aussies are buying, what are the chinese doing? Are they buying everything they can over there? If so, one day americans will wake up and see there is nothing left for them to own.
Oh no !!!
I sure hope you're not having those thoughts! If you want to buy anything, buy gold or silver and if you're paying with AUD, fully hedge vs the USD. It's not that the AUD can go much higher, that's not what's happening....it's the USD that's sinking against "everything". And it can sink a LOT lower than where it is now. Then you have the house foreclosure backlog... it doesn't even reach it's peak until 2012. This game is just starting. As the USD sinks the huge trade deficit (includes oil imports) will unleash huge inflation in USA. Falling USD, falling asset prices and raging inflation .... horrible is what's ahead for USA.
LL
I sure hope you're not having those thoughts! If you want to buy anything, buy gold or silver and if you're paying with AUD, fully hedge vs the USD. It's not that the AUD can go much higher, that's not what's happening....it's the USD that's sinking against "everything". And it can sink a LOT lower than where it is now. Then you have the house foreclosure backlog... it doesn't even reach it's peak until 2012. This game is just starting. As the USD sinks the huge trade deficit (includes oil imports) will unleash huge inflation in USA. Falling USD, falling asset prices and raging inflation .... horrible is what's ahead for USA.
LL
From what I hear it's "If you got the (CASH) money honey, I got the house for sale".
LL
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