Jay

Do you have to have a view on rent growth and inflation?

Under your scenario are rents stabile or growing with inflation or falling as renters leave the rental market and become owners?

Vacancy rates are so high won’t it take a long time for demand for shovel ready lots to return? more than three or five years? You’d need to pick your…[Read more]

Thanks lawsjs. I have two houses in my name for the reasons you say but I thought I might have been poorly advised as everyone seems to use LLCs.

As I said, the Reserve Bank is pretty optimistic and left the rate steady today.

“Recent information is consistent with the expectation that the world economy will grow at a below-trend pace this year, but does not suggest that a deep downturn is occurring.”

That’s not the words of a pessimist. If they are wrong, they are ready to drop rates,…[Read more]

This has been a good topic thanks guys.

Most people can see that investing overseas is riskier than local and limit their exposure accordingly.

Winning points in an argument is fine but a bit of empathy goes a long way in life.

Well the Reserve Bank is pretty optimistic – more than your comments. Its not just media hype. But there’s always the xfactor of what we can’t see ahead.

The current stabilization of nominal house prices as wage inflation carries on is already making housing more affordable so there’s still a chance that the Australian housing market can…[Read more]

Alex

I agree the relationships are critical and particularly with overseas investments.

But what if your clients met you first in their country (assuming you came out for a tax deductible holiday) and did most of their due diligence on the internet?

Cheers

David

Stu82 if you pm me I’m happy to share with you

WI

If I knew which way I’d be rich!

Very difficult to call when increased confidence in the US results in a higher $A due to traders taking bigger positions in higher risk currencies.

It appears to be good time to buy with a US loan. Then if the Aussie dollar goes really high pay out the loan and if not you’ve got US cash flow to repay the…[Read more]

Hi Jay

My take on your product is that it is a good superannuation investment so makes sense that superannuation is your first Aussie interest. Normal returns on our balanced super funds are 7.5% long term so 9% is good then you get forex impact (good or bad your call) and equity amount on sale (again insert your guess). (I wish I had an extra…[Read more]

By you I mean us property markets

Hi Jay

Same thing was happening on our Gold Coast. We called them “marketeers” and special legislation was introduced. Those that held on eventually made back their money but those that sold early lost thousands. Might be the same for you if the underlying property is sound.

Regards

David

Interesting post thanks Engelo

Cheers

David

Dear Investing Novice

http://www.housingpredictor.com/2012/texas.html

The Housing predictor website is saying the Houston market is recovering while Atlanta is still working through foreclosures. So you might pick up a bargain in Atlanta or buy into a rising market in Houston.

I agree having good contacts, property managers and finance can…[Read more]

Hi. Thanks Engelo – great idea. Perhaps you could post a summary of your discussion with any conclusions/tips after you meet.

If there’s people in Brisbane interested in a meeting in person over coffee we could get together to share our experiences of US property investing. I am an investor and have a couple of properties and am learning more…[Read more]

Dear Alex and Jay, I think you’re on the right track in looking for good loans for overseas investors in US. It influenced my decision in the end as with 50% LTV I got 2 for one and once the loan is paid I’ll have double the cashflow.

With a good loan an investor would be more interested in higher quality lower yield US properties and you might…[Read more]

10% vacancy rate for Memphis. That’s why you factor in up to 2 months vacant a year. My property manager did find a tenant in two months.

Why doesn’t high vacancy rates result in lower rent? Must be the shift of people from being owners to renters?

How do you mitigate high vacancy rate? Good property manager, keep the place looking good, go…[Read more]

Derek

That’s very sobering. Chilling really. Americans have shown resourcefulness in crisis before so hopefully they’ll turn it around before becoming “a banana republic”. Some tough decisions are required.

David

You could take a portfolio view and have a small exposure to volatile markets with a larger exposure to more stable ones. That’s what is behind the willingness of many Aussies to look at higher risk US property. But why buy into a downtrend when you could choose a market that looks like it’s at the bottom?

David

Rob

Advantages of German real estate

– EU lending available at low rate high LTR reduces currency risk
– high net yields in regional cities. Tenant pays many operating costs
– can buy an apartment building for the same cost as a one bedroom unit in Australia. Prices are low but have shown growth in recent years.
– low turnover in tenants
-…[Read more]

Terryw

Yes a foreigner can own German property and finance appears to be much easier to get than in the US. Most people in Germany can speak some English and if they find out you are from Australia that can help the conversation!

David