Forum Replies Created
No worries as I said it is pub talk and that is not to be forgotten I just thought that your opinion needed to be qualified as I happen to know investors that have done very well in that area so not all of them are half cocked and they have all done whatever research they deem necessary, generalities will always attract criticism
I also know investors that are doing well in other parts of US and Canada as well
so each to there own and there is opportunity everywhere as there is lossyeh, roll on frequent flyer points, late night phone calls, management by email, tax deductible holidays and even no tax if you come back via the Isle of Man.
A clearer picture emerges the dissenters have decided based on there esteemed research to invest in other parts of the US and so should you……
and by the way one of the areas that we are not investing in started of as a slum but after going back to there elitist research notes and esteemed colleagues maybe, perhaps, might, could, should some investors especially the ones that they know will do okay in the slum and this is now only a personal opinion not to invest there.
We dont tell you where to invest (apart from Christchurch) but will tell you where not to invest and in the US it is Buffalo…..
or you could just cut to the chase and be smarter than the average investor and buy a good long term investment in a great property in Christchurch
And if you invest where we are suggesting in undervalued blue chip properties (I don’t know what this is but will show my ignorance if I ask so best nod my head to this one), taxes are lower, there are less vacancies better property managers and finance has no issues ………..
the clever well researched investor is to be found in these areas there are no foolish investors here following .com trends this might be Texas or Florida who knows because it is an insider secret that might be revealed for some consideration but wherever it is it is better investment than Buffalo for you even if we don’t know what you are trying to achieve yet
…now a new debate has started who has done the most research…and a genuine concern for the financial wellbeing all those poor dumb ass investors that are “foolishly throwing there money away” if only they had access to our research papers which are the best that money can buy then they would be saved
Maybe we should keep a timesheet of hours spent researching and give out brownie points to those that record the most hours researching and set up a system whereby you must have recorded x hours researching or buy someone else’s research before you buy, yes that is the way that is what I must do, we all know that research is the key
Maybe even a joint Australian and New Zealand standard for property research should be started by the international standards committee it could have standard definitions for undervalued blue chip properties we could even look at adding a section for investing in the US and include insider secrets on where not to invest and things like conversions of square feet and land size..
Some of the -ve responses on this thread with respect to investing in WNY particularly Buffalo are an important reminder that anyone can say anything on here for free and it doesn’t have to based on facts just ill informed, knee jerk gross generalization is a good enough qualification to post your feelings.
So the value derived by readers to those feelings should be equivalent to the cost of making them zilch, it is just pub talk.
So the pub talk is fine but as Brisbane 04 says if this pub talk is being offered as paid advice at workshops then that is a concern. At least this forum will serve as a warning not to have a blind faith in what property experts tell you especially if you are paying for it.
I found the ANZ Break Free package best for me with a saving account that is offset against PPR mortage and a LOC (based on my PPR Home equity) for High Cash Flow IP’s that I keep maxed out for interest tax deductability.
I keep my savings up as my IP lender (not ANZ)likes to see that, it is also reducing the interest on home loan and it is available for emergencies as I do old house rennos I might cop three big hits at once, if I do I will survive it without having to bale and be a motiviated vendor.. Try to keep enough cash in savings for a years cost of high mainteenace low occupancy in IP’s..any profits back into savings until LOC maxed out then pay off some of my home loan to increase LOC to get more IP’s not including any price growth in PPR seems that is going to be a bit falt for a while.
SO for me cash is offset against PPR mortgage, good for sleep at night factor, IP problesm and borrowing credibility, investment LOC always maxed out.
I have some knowledge of Ajay who runs the hotspots in the USA site and have spoke to him a few times about the Scottish and Buffalo market. He has a pretty good track record in the UK and is one of the top cash flow gurus out there. I dont think the deals on his front page are the ones he is touting as they have been sitting on his site for a long time.
Ajay is known for going into more marginal areas and it seems to work for him and his investors. Have a look at what he says about Buffalo and the ozzie investors you will also see the type of deal that he reccomends as they just missed out on two. His view is that you get the houses on high yield and the growth always follows and he has the runs on the board in the UK. Hey I aint buying from him or endorsing any of his services but from my point of view it is good to see that the Brits are getting into the market.
The Brits are also getting pretty serious about investing in the area as well, more demand has to be good
Check out
http://www.hotspotsintheusa.com/page/page/2222170.htmWell I am glad to say that I am investing well outside of those “certain parts” and in fact in an area that is consdiered undervalued by 13%against “normal housing values”
So lets see undervalued US $ against oz $, undervalued housing area and buying at 80% of value yes I will take the risk.
Originally posted by jonas:By the way Steve did say during this weeks masterclass in perth that he has in fact stopped buying real estate. That doesn’t mean that his partner Dave has stopped.
jb
well thats not what the quote in the Australian say
Piggy,
With respect to your question on yields in Buffalo if you are going out there you should be targeting 30% minimum try right on the Buffalo side of Cheektowoga suburb this is a good area and 30%is doable. You also get the benefit of being very close to the suburbs.
Bruham,
Duplex paid 25.5k last month in US
same proeprty previosuly sold
May 04 for 64k
June 94 80k
I reckon I am buying at the bottom.
Thats my bet
Liz,
You best talk to an accountant but in general the % rate in the above messages will aplly either 15%, 23% or 30% above on $600 depending on how you structure it also cost of doing return will need to be deducted as well. Then any ozzie tax due after that if you take the money back here and it is outside the DTA.
Liz,
Also dividends from a company are taxed at 15% . So without state tax you are looking at 30% and then there is the question that the dividends for a company are not part of the DTA so they may have to be declared as income here in oz……
does the non-resident return start to look better to you ?
Liz,
8% state tax and depending on who you talk to and where your C corp is resident some say you dont have to pay it. I think you do for what its worth. Also tax rate increases for higher profit.
Just remember the double taxation agreement doesn’t apply to coporations and any funds coming to ozzie are taxed as income even after you have payed tax in the US.
If you go for non resident return its 30% witholding tax that you get credit for in oz.
Liz, 6 months for a business account but you can open a personal account straight away. Wouldn’t know how they compare with other banks in US but they are a major bank.
Bank of Hawaii are the best.
Liz,
You can open up a personal US HSBC account here in oz.
If you want to open up a US LLC or business account I think you need to be there. There might be an option to have a business account opened by an attorney under power of attorney.
or just go to Hawaii and have a good time and open up a bank account in between pina coladas and the surf
Hey Mabbott this should help you get started.
I started looking at Buffalo June 04 and got on to these guys they are a very good cash flow investor group I used them to get set up and start buying in Buffalo first purchase was in early January 05.
eg duplex in decent area paid 26.5K spent 9k on rehab now in excellent condition and fully tenanted to section 8 at 1000 month 34% yield.. I thought it was in good knick when I bought it but manager recommended 7k rehab then section 8 wanted 2.5 k further work done so its palatial now.eg had beuatifulvarnished natural wood windows doors and skirting board architrays etc but section 8 wanted in painted..
section 8 are the govt dept that subsidise low income tennats rent some say dont do it I think its great to be on George Bushs’ payroll he is never late with the rent and cahnces are the tennants will saty teher for a long time. There is a waiting list to get on section 8 so it is sought after by tennants.
The main strategy promoted by NYC cash flow is to get in to the market at 80% of value; you have to be very selective in doing this would be hard to do from here without a trusted team to help and trust usuallt is earned not given. This system is called cash out investing it is a very low risk method and also good for your net worth….
My preference is buying foreclosed homes and rehabbing. You need to have a trusted local team on the ground NYC cash flow is a good place to network. There are plenty of rent ready deals as well.
Try these sites also:
http://www.real-info.com gives you actual sales price and comparable sales you can get a two week freebie and keep getting it if you want
go on the buffalo news web site then homefinder and you will also see a website that gives you actual sales prices
very very much buyer beware but there are real sound deals to be picked up there if you can check them out on the ground
There is also a local investor group called WNY investor association I went to one of there meetings it was pretty boring but went down the bar after pizza and beer the quality of info improved 716 773 2980 PO Box 653 Grand Island, NY 14072
Also check out this table with an indication of US house price value.
If you are chasing higher yields for residential property you might have to go where they are to be found and it might not be in your local area.
eg you could go the US and get a property at 30%yield ….
Allan,
I have been studying the US market for the last 12 months and disagree that regional areas are on the bubble.
Sure the East and West coast major centers such as California, Boston, NYC, LAs Vegas some parts of Florida are over valued and fall within the bubble defintion. But most regional areas have either being growing steadily within the national average of 7% per annum or have been lagging with very very small growth in the last 15 years. So no evidence to suggest a bubble in regional America.
Tony,
Thanks for that I have just Pm’d you, look forward to getting some certainty on this issue.
Mark,
Thank you for response, which I understand. But I am having difficulty seeing the benefit of the C Corp as there is a double taxation issue as opposed to a straight non-resident return and withholding tax once.If the C corp pays income tax and then there is a withholding tax on a dividend and the trust will also be taxed (sure it gets credit on the withholding) on this dividend, as corporations are not part of the double taxation agreement.
So obviously the numbers need to be run through to see what the overall benefit is but generally speaking I cant see why the C Corp is beneficial if you want the profit to come back to oz.
Bardon
