That’s a good question.  I’m not going to provide tax advice, but for my older homes, the quantity surveyor (QS) has depreciated most of the renovations done prior to purchase (they have an effective life) of around five years depending on whether you choose prime cost or diminishing value methodology. Then there is a small amount of…[Read more]

It would be a nice to have foreign currency earnings if the A$ falls.

Jay has a point about directing passive…[Read more]

Cheers David

How do you know your capital will be preserved with a falling population and tenant base?

Cheers

David

I have cousins in Spain who are actually real estate agents and they told me to stay well clear of Spain. I’m not familiar with Portugul but would be very cautious about body corporate tenure and holiday letting comes with risks in any country.

You might…[Read more]

Shows the importance of Hispanics immigration with positive birth rate contributing to overall population growth and housing demand in the US along with interstate migration from Northern industrial states to the South and West.

That explains why US population is growing where European and Japanese populations…[Read more]

So Im…[Read more]

Cheers David

http://www.bloomberg.com/news/2012-03-27/bidding-wars-erupt-as-u-s-supply-of-homes-for-sale-falls.html

Cheers

David

In Aussie we can get 5.85% today on money in the bank with capital preservation so any money invested in US has to have a lot better returns than that.

Most of the investors you are seeing from overseas are people speculating a small portion of their portfolio or some of those on this forum who are investing boots and all…[Read more]

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]

“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]

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.

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]

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

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]

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]

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

Cheers

David

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]

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]

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

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]

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

David

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]

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

20% net is a great yield. Well done in finding that, especially with 75% financing.

I have seen 8% yield in Berlin, 10% net near Leipzig CBD, 15% net where there are vacant units or some renovations required. Where I’ve looked yields are higher the deposit/cash down is higher for a loan.

In what way would you like investors to join…[Read more]

Regards

David

There aren’t any great books which may be why you haven’t got a response until now but I enjoyed reading “South of 49: The Canadian Guide to Buying Residential Real Estate in the United States by Philip McKernan. It’s available on Kindle too.

I learned not only about US real estate but also Canadians!

Cheers

jbelmore