WHAT? WHERE? and WHY? are you buying in the US.

[engelo10]

Hi all,

I am interested in what approaches other investors have made to buying US property.

What type of properties are you buying? Single family? Multi family?
Condominiums? Commercial? etc...

Where are you buying? States? Cities? Towns?

Why are you buying these properties? Yield? Capital Growth? Fix and Flip? etc...

Also, what do you want to achieve from investing in the US?

Lots of questions. Thanks for your time.

Regards,
Engelo

 

[long88]

this has been discussed in great details, please use search functions, and read up..

Hi all,

I am interested in what approaches other investors have made to buying US property.

What type of properties are you buying? Single family? Multi family?
Condominiums? Commercial? etc...

Where are you buying? States? Cities? Towns?

Why are you buying these properties? Yield? Capital Growth? Fix and Flip? etc...

Also, what do you want to achieve from investing in the US?

Lots of questions. Thanks for your time.

Regards,
Engelo

 

[engelo10]

Thanks will do, thought I would start a new topic as there is always new people joining the forum. And maybe there are some new ideas since the last topics.

 

[long88]

i think the only things that changed so far is the interest rate going down by 0.5% in the year of the discussion (2010-2011) by RBA.

there is a lot to read in this forum, depends on your interests.

Thanks will do, thought I would start a new topic as there is always new people joining the forum. And maybe there are some new ideas since the last topics.

 

[biggaz13]

USA investment

Hi Engelo

I've only been interested in single family homes.

I've concentrated on Cleveland, Atlanta, Kansas City.

Some cities must be avoided. ie Detroit and Las Vegas

I've gone for cash flow. You can only have so many negative geared properties in Australia before your cash flow is awful.

10 year plan.

Hoping that the rent will keep going up.
There will be no capital growth in the next 2-3 years but after that...........
The Americans historically have been an industrious bunch have gotten themselves out of tight economic conditions in the past. Signs are good that their economy is gathering steam.
The 40 year average exchange rate is A$1 = US$0.80. So its a good time to buy in the hope that our dollar falls or the US dollar gains power.

So far. So good.

But it will test your investment profile.

Issues include:
Buying site unseen.
What is the neighborhood like?
Property management.
What is the condition of the house?
Setting up a US bank account and getting an ITIN. Their version of a TFN.
Getting your taxes done.
etc etc

All the best

 

[engelo10]

Hi biggaz13,

Thanks for you reply.

Do you own any properties in the US?

I think the most important thing with US property is the team you have managing your investment. Because you can really loose the yield if you have long vacancy rates and constant repairs. I am confident the US economy and housing market will eventually recover but who knows how long it will take. I have always based my investing on numbers and never predictions of capital growth. There are some great spots to buy in the US for when the market recovers but at this stage im just looking at loading up with 15% - 20% net yielders. After building a significant portfolio of these positive casfhlow properties I will consider buying in areas with lesser yields and a better capital growth prospect.

Money can be made in any market.

Thanks.

 

[biggaz13]

In the end I bought a 3 bedroom house in Cleveland Oh and another 3 bedroom house in Kansas City MO.

If I get a third it will probably be in Atlanta GA.

The property management team is vital. The issues I have is the slow response with my emails.

You get a sinking feeling when you hear the house needs repairs. I got a list of 4 different things needed fixing and then they gave me the quote: $140 for the lot. Did I want to proceed? Much cheaper to fix things over there.

I'm told "Aussies" are encouraged to setup their houses under an LLC. Each to their own but I think its a waste of money. Over 90% of all investment properties in the US are owned under an individuals name. Single family homes are the lowest risk of all property styles.

Insure yourself to the hilt. Especially with indemnity insurance.

I'm told Texas is a good market for capital growth if thats what you want. Employment drivers. But your competiting with a lot of other people who are keen on that. Thus your buy in is higher and cash flow lower.

Anyway it sounds like you have done a lot of research already.

All the best with moving forward.

 

[MTR]

Hi all,

I am interested in what approaches other investors have made to buying US property.

What type of properties are you buying? Single family? Multi family?
Condominiums? Commercial? etc...

Where are you buying? States? Cities? Towns?

Why are you buying these properties? Yield? Capital Growth? Fix and Flip? etc...

Also, what do you want to achieve from investing in the US?

Lots of questions. Thanks for your time.

Regards,
Engelo

I have purchased and continue to purchase with Karina "Select American Homes", she is a long time poster on SS, suggest you search her profile.

Properties she is purchasing in Atlanta are impressive, provide excellent yield, she is picking up properties well below her competition.

http://www.propertyinvesting.com/forums/property-investing/overseas-deals/4343020

Cheers, MTR

 

[handyandy]

I'm told "Aussies" are encouraged to setup their houses under an LLC. Each to their own but I think its a waste of money. Over 90% of all investment properties in the US are owned under an individuals name. Single family homes are the lowest risk of all property styles.

Insure yourself to the hilt. Especially with indemnity insurance.

I absolutely agree with the need to have insurance coverage.

One important point to be considered with owning your US investment properties in your own name is what happens should you die whilst invested in this manner.

The US has death duty and as such for foreigners anything over $60k is taxed as part of your estate and then taxed, potentially including your capital raised from LOC in Aust at 26+%.

"The US federal estate tax does not apply to the estate of a foreign decedent, unless the decedent owned assets situated in the United States at the time of death. US situs assets having a value of up to $60,000 are exempt from estate tax. If the value of a foreign decedent's US assets exceeds $60,000, the excess is subject to estate tax at marginal rates beginning at 26% and increasing to 55% for taxable assets in excess of $3 million."

http://www.internationallawoffice.com/Newsletters/Detail.aspx?r=1139

If you had structured using a trust in Aust and LLC in the US then there should be no estate consequences particularly if the right paperwork is in place.

Cheers

 

[engelo10]

I have purchased and continue to purchase with Karina "Select American Homes", she is a long time poster on SS, suggest you search her profile.

Properties she is purchasing in Atlanta are impressive, provide excellent yield, she is picking up properties well below her competition.

http://www.propertyinvesting.com/forums/property-investing/overseas-deals/4343020

Cheers, MTR

Hi MTR,

Thanks for your recommendation but I already have my own team set up for US purchases.

Engelo

 

[JWR]

Just to be argumentative.

You will lose quite a bit of profit over time due to $USD weakening over the long term as the Yuan becomes the major world currency.

 

[MTR]

Hi MTR,

Thanks for your recommendation but I already have my own team set up for US purchases.

Engelo

Not a problem, would like to know what types of properties you are sourcing and where if you care to share.

Cheers, MTR

 

[biggaz13]

Just to be argumentative.

You will lose quite a bit of profit over time due to $USD weakening over the long term as the Yuan becomes the major world currency.

No chance. The Chinese have no interest in their currency being the dominant world currency. They will continue to peg their currency to the US dollar to ensure their exports remain strong to the rest of the world.

Even if it means importing inflation.

The 40 year average is A$1 = US$0.80.

 

[lawsjs]

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