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As above….and in addition, be aware that she will essentially become a foreign currency trader when she has money tied up overseas. If she can get finance where she purchases (i.e.. USA), she can eliminate the currency fluctuation risk, provided she doesn’t transfer cash back to Aus unless the exchange rate works in her favour.
The US gig is complex, especially when it comes to property management too. I suggest doing plenty of research before buying.
All the best.
Peter
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Email MeRJ Sanderson Associates.
They have branches across Melbourne. Been with them for over 15 years.
They specialise in investment property.
Cheers.
Peter
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Email MeGreat to see Nigel and Richard still actively contributing. wtg guys!
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Email MeWhat are the differences investing in NZ?
–There are several subtle differences. The main advantages are low entry costs (no stamp duty), low holding costs (no land tax), low exit costs (0% CGT if not trading properties).
Do properties have rates, water costs?
–Yes
what are the averages there?
–Depends on the area, similar to Australia.
I saw one property that was on a 100 year old lease, is that the case with all properties, or was that just a 1 off? Normally when you buy the house you own the land for ever?
–Some properties you can purchase a leasehold. Freehold properties are my preference (house and land).
What is the cost of property agents in the NZ?
–Usually about 7% but negotiable
If a property costs $500,000. How would I be able to buy?
–Make an offer and sign a contract.
Do I need to transfer a deposit to NZD?
–If a deposit is part of the deal yes.
Can I use an Australian big 4 bank to get a loan?
–You’re best using a NZ Bank or institution. Fortunately they will include Australian income to determine servicability.
What would my interest rate be?
–Check their sites for comparison. You will generally have a higher rate than NZ residents.
Or can the big 4 banks just take care of the fund transfer? Does the money even move banks? maybe not.
Can I negotiate with the seller to buy in AUD? How do you do that?
–Generally no. You will need to calculate the conversion rate.
What are NZ tenants like? reliable?
–Depends on the area and property type you are investing in.
Hope this helps.
Aussie
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Email MeI got messed around by a property management agency that tried to rip me off. They said work was done when it clearly had not. Trying to contact the manager was also quite difficult. In the end I drafted a letter of complaint to their professional association and faxed the draft to the PM agency. I stated that I would send the letter to the association if after 14 days I did not receive a full refund for the works and the repayment of all PM fees to date as they hadn’t provided me with the service as stated in the contract. I also request that the contract be cancelled. I received the refund in under a week and we went our separate ways.
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Email MeHi TH
I am currently picking the brains of my USA team to provide their expertise. Leading up to Christmas is proving a bit of a challenge so I won’t have anything until next year.
The more survey responses the more specific information, so thanks for completing the survey.
Others interested will find the survey at http://www.surveymonkey.com/s/C3K32QF
Have a Merry Christmas.
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Email MeHi everyone
Thanks for the overwhelming response to the survey. There are certainly some common themes appearing that I will get to work on straight away, especially property management, structures, tax, areas to invest and different strategies.
I think that the best way will be to write a chapter then email you for comment then the next and the next then put it all together at the end for a first class ebook. This way you can access the information on the hot topics before completion.
The survey can be found at http://www.surveymonkey.com/s/C3K32QF
Cheers
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Email MeMark
Try talking to your attorney as they will have many investors on their own books that they can pass the details on, assuming of course that the deal is attractive to other investors. The attorney will get the business from the transfer of the title deed as their payment.
This has worked well for me in the past.
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Email MeHi BB and all
It's great that we can share in other's experiences with our investing. I have just returned from the USA myself and have been astounded yet again at the opportunities, although this trip was more about catching up with my USA contacts to get ready to go again! 2011 will be year 6 for me in the US and probably the best yet and as in 2005, I will be glad to join in the information sharing through PropertyInvesting.com
One of the common threads I find in reading the posts in this forum is the lack of a common place or one-stop-shop for all of the information needed to invest in the US. There are plenty of threads with information scattered all around the site.
I may be able to help this and you guys help me at the same time as I am currently undertaking a course in Internet Marketing and, with your permission, I seek your assistance in creating a free e-book for participants in this forum.
In the project I will need to cover all of the aspects involved in investing in the US, many of which I will provide from my own experiences, as well as seek information from the experts both from within Australia and in the US.
The benefits for me will be the opportunity to conduct my first ever survey and write my first e-book, not for profit but to get the experience and complete this project as part of the course. The benefit for you will be to have your questions answered and have a single reference book for whatever purpose you wish to use it.
A survey page with two questions has been set up at http://www.surveymonkey.com/s/C3K32QF and I would really appreciate it if you could assist.
Please feel free to ask any questions.
Thanks for your help.
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Email MeBe careful also that when you finance in a foreign country you are exposed to currency fluctuations. This can be a huge risk if you don’t know what you are doing!
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Email MeFolks
I’ve been using HSBC for some 5 years now, without any hassles or complaints. I set this account up through a branch in Melbourne.
To get around the ‘check’ issue, my attorneys have a limited power of attorney to act on my behalf for Real Estate transactions and have banked checks on my behalf also. They both hold ‘operating funds’ in escrow for me and I provide written or email direction on the use of those funds. All I need to do then is top-up the escrow account by wire transfer from my HSBC account for future purchases. When a transaction is made, a part of the documentation includes a copy of statement for my escrow account.
I use two attorneys. One for the more conventional property transactions and one for the more ‘creative’ transactions. They both specialise in these areas.
Another avenue to look at is ‘tax deed’ investing. Google it and have a look at the difference. Each one differs depending on the strategy you choose to follow, however tax deeds appear to be a very attractive proposition. I wasn’t aware of the tax lien seminar so I don’t know if tax deeds were also covered as a topic.
I hope this info is of some assistance.
Cheers.
Peter
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Email MeSorry can't help with the structure you are referring to.
With flips, Cash is King. Offer cash, quick settlement, receive a hefty discount. You pay for perks and creative acquisitions. Keep it simple. Most properties I buy at 50c in the dollar, even before the crash.
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Email MeIndustrie Developments wrote:AusinvestThanks Buddy – love to draw some info from you to seeming you have been doing it for a while mate.
I have been chatting to Worldchanger for a while.
Looking to do some flips myself – waiting up till 9am hits over there.
Mate do you have any good buyers agents in Georgia – really need one??
Sorry, I just do WNY.
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Email MeOh, and I forgot to add, my property manager is semi-retired and looks after me exclusively. She even has a very good and extremely well priced semi-retired builder that does my work exclusively for a very cheap rate. She charges me by the hour, not a fixed percentage.
I have a very creative attorney that makes the transactions seamless. (My previous attorney passed away unfortunately).
Remember to look outside the square. The biggies are not always the best and you become just another client, along with the rest of the long-line of international investors.
Also, relationships are everything. That's how I established my exclusive team. They became friends and wanted to assist me, not because they had to, nor for the money.
Build rapport so you don't become poor.
Hope this helps.
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Email MeWorld Changer wrote:Hi guys,no prob at all email or pm me and if i can help i will.
What i tell people is to definately be on the ground yr self and do yr own deals.Most of (around 90% )the buyers agents are still learning themselves and have no idea how hard it is managing from Oz
(No dis respect meant)Hi all
It's been a while since posting. Worldchanger is on the money!! I have been flipping houses in the US since 2005. It takes a while to sift through the crap to get a good team. Then there's the late nights trying to sort everything out remotely. Let's not mention the exchange rate. You become a currency trader as well as a property investor.
I personally don't do buy and holds, just rehabs and flips. Straight in, straight out.
There seem to also be a lot of start-up 'advocates', even with just a few posts after signing up in the past few days.
Nigel, it's great to see some old familiar faces on the site still.
'These are the guys you should be taking advice from, the guys that have been there and done that more than once and for more than a few days or months.
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Email Mepwinne wrote:Hi aussie, email some pics and the rental details.Cheers
pwinne
Go to the link below and it has the details and photos. I'm throwing in the furniture also, if desired, as once I leave I won't be taking it back to my house in Melbourne.
I live in the studio for one week out of four, when I'm on call in Gippsland, and as required, so there are no wild home-trashing parties.
You'll notice the fridge is in the bathroom. That's because it is too big to fit under the overhead cupboards in the kitchen and there's a good spot in where the washing machine goes.
You can either deal through the agent or ask me questions directly (I will give you my mobile number if you PM). The agent will still process any sale.
It looks pretty sexy now the work has been done
Edit: The photos show the old curtains. They have all been replaced with new verticals and a holland in the kitchen.
Also, with the tax deductions on new items from the reno, a negotiated price and falling interest rates, positive cashflow is a reality with this gem. It has served me well as a 'stop-over unit' that I won't need after a while as another no-cost accommodation option will be available for me.
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Email MeHow 'bout a studio apartment in Traralgon (currently owner occupied (me) and recently renovated by me). I will also stay on and rent back for up to 12 months.
Figures represent 5.9% gross yield but prepared to increase to 6+ for a quick sale. Renovations will bring excellent deductions also.
Everything under $80K.
Traralgon is growing and is now a transit city to Melbourne. Very stable employment in power industry, coal mining, plantations, farming, paper manufacturing and supporting industries as well as a major hospital and Regional airport. Recent projects announced include a new power station and $2b Urea fertilizer plant.
Kick me for advertising but I think I've been a pretty good contributer to the forums since September 2003!!!
PM me if interested or would like to know further.
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Email MeSmirg, read both books to get a better perspective.
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Email MeSunnygirl
You are playing with another huge risk if financing from Australia. You will be exposed to currency fluctuations that can cost you thousands and even 10s of thousands depending on how much invested. In Australian terms also, the value of your portfolio and yield will decrease as the AUD increases, however your repayments will remain the same. Also, you cannot secure US property against Australian finance, unless someone on this forum has achieved this.
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Email MeI recently re-roofed a triple storey house I will be selling in Rochester. It cost only $4,500 to reroof. Over 10 years that's only $450 p/a.
Property management is always a concern from abroad and is difficult, fortunately I've found a property manager that also project manages for me. She has contacts within City of Rochester and recently fought and won a big battle involving a zoning change. There are some good PMs but there are more shockers and rip-offs.
Houses in Rochester generally sell from $40K to over $200K, depending on the area. For example, one of my houses (a duplex) that I am currently doing up will go on the market for $44,900 (with the re-roof). One half is already rented at $550 per month, the other will rent for the same once complete, so $1100 pm or $13,200 pa minimum. Taxes are about $2.5K pa, insurance about $600 pa.
Based on these figures, returns are around 29.4% gross or approx 22.2% less taxes and insurance. Allow 10% property management (on total rent) and the approx net return is about 19.3%.
The other issue is finance if you're looking at NY State. If looking at the lower end, cash is always an option but houses in WNY are very difficult to finance, especally the cheapies and especially for foreign nationals.
My tip is to keep researching, talk to people in the US, book a ticket and go and look at the market on the ground and get a feel. It's a tough gig and a lot of Aussies have been burnt.
Good luck and feel free to ask any questions.
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