[Positive AussieMember@positive-aussieJoin Date: 2011Post Count: 7]

June 6, 2011 - 3:57 am

Its true that AUD sky-rocketed very quickly against USD because of various reasons like Uncle Sam is printing lots of money and US unemployment numbers are still high etc etc.

HOWEVER, US is not going to loose its power so easily. Many will surprise about this fact that declining in industrial productivity had started in USA in 1970. In other words, it took around 40 years to come on this current recession. Even this time, real estate market brought it to the knees, otherwise US could postpone it for another 10-20 years.

USA has been leading the world as economic power-house for more than century, and certainly any world power does not go so easily. If everything go wrong, (which is almost impossible), US will still take another 20-30 years to reach a stage where it will not be a worthwhile place to invest. But this duration is more than enough to make profits many times with high-return and capital growth.
World’s 3rd largest population with extremely high consumer economy (except last 3 years) will not let the property prices down to $0.

CHINA – This country is much less desirable place for investment because of extremely high inflation and lots of over building. China has lots of NEWLY BUILT GHOST CITIES where nobody lives. China is so reliant on US consumer economy when US was in recession in 2007, China offered $500 billion help to them so that they keep buying Chinese goods. US consumerism is still alive, but just paused for some time. Indeed, China could maintain their high GDP growth in recession because they kept building/spending on cities which provided jobs to millions. Now they have built, but no demand because inflation is so high average Chinese can’t afford to buy.

AUSTRALIA – Unfortunately, we are too much dependent on mining revenue which comes from China. When they were “over-building”, the main supplier of raw-material was Australia. That construction gave benefits to both countries. When China goes down, Australia will face its maximum impact. Therefore, USD/AUD will be back very quickly to its previous rates. Some experts believe that this process has already started with signs of Australian real estate market has contracted recently.

IN SHORT, now investing in US makes real sense with high dollar, not only because it buys more, but also because with high USD later the rental return will be higher than now. It may be up and down for sometime, US giant economy will recover in near future.

[Positive AussieMember@positive-aussieJoin Date: 2011Post Count: 7]

June 4, 2011 - 12:02 pm

Marisa wrote:

Hi all
I am almost certain that this article was written some time ago by Rick Otton who has lived and closed many deals in USA.

Just makes me realise how important it is to get it right and understand the product I am purchasing.

So much stock that is being sold at the moment to investors, I believe the key is being able to do your own research and interprete whether it is in fact a deal worth pursuing not just by the numbers stacking up.

Cheers, Marisa

Hi Marisa,

If this “NEGATIVE ARTICLE” was written by Rick Otton, now I understand the reason behind this. Rick Otton is clearly discouraging Australian investors from investing in US. Indeed, after many years working in US, Rick now works here in Australia. The country (USA) which supported him for long time, now he is blaming the same country. With this article, indirectly, he is selling himself.

I also have properties in US, I never faced such horrible situations which are being painted in this article. Yes, US is different than Australia in many ways, but not in such bad manner. many things are better there than Australia like cheaper repairs, more affordable appliances etc.

[Positive AussieMember@positive-aussieJoin Date: 2011Post Count: 7]

June 4, 2011 - 11:20 am

trhia wrote:

In addition to that, my research also tells me that if you are taxed here and US, pay tax in US and claim tax credit here, you can also negative gear here if you borrowed money here for the property.

You may be eligible for tax deduction benefits in US, even if you borrow funds in Australia. Then balance tax (paid in US) can be shown to ATO for further deduction as tax credit. Most importantly, all types of loans (credit cards, personal loan, equity released loan from Australian property) can be considered for tax deduction in US.

I have been researching US market for a long time.

[Positive AussieMember@positive-aussieJoin Date: 2011Post Count: 7]

April 12, 2011 - 8:25 am

Rosa Tong wrote:

stefcop wrote:

1eyeopen wrote:

Yea I get what your saying thank you for your response I'm only 23 and just starting out in the real estate business so hearing feed back on other peoples experiences is really helpful. Especially successful peoples opinions like yours are hard to come by. Thats why I really liked the US Prime Property website. It seems they are a down to earth, helpful bunch of guys <moderator: delete language>. I just hope this memphis property goes well haha. Being my first investment and all

From what I hear on the grape vine the down to earth guys at US Prime are ex employees of my usa property who have branched out on their own and have now jumped on the band wagon to make a quick buck.

They could just be dissatisfied with their company… no dramas happens all the time… and problem jumping on the bandwagon… just as long as you don't leave it too late.

it doesn't matter to me that they are making money…otherwise they wouldn't do it for love… as long as i am making money… i don't care.

ABSOLUTELY RIGHT!!! The bottom line is – These companies should look after their clients very well and must have ethical values. Not only in US investments, we see companies with shining offices and big names, but with moral values. Without good intentions, nobody can deliver their promise.

[Positive AussieMember@positive-aussieJoin Date: 2011Post Count: 7]

April 11, 2011 - 6:06 am

Congratulations RickH,

it is your success; and there is nothing sweeter than success. I wish, your property exceeds your expectations and gives you maximum bang of your buck.

[Positive AussieMember@positive-aussieJoin Date: 2011Post Count: 7]

April 10, 2011 - 12:54 pm

Hi Rosa, I completely agree with you when you say you are looking for just good investment, does NOT matter if other people are running it. After all, in compare to the amount of time overseas property due diligence takes, it is much wiser to get some professional help. Even after paying their fee, it will be a worth while to do it.

I am looking for Florida property. I have selected few buyers agents so far like
(1) MyUSAproperty.com
(2) Cash for gold.com
(3) PropertyShopUSA.com

But I haven’t contacted them, will call them tomorrow.

I know, few buyer agents will read this post as well; and will try to convince me with all types of data (about their companies and their “preferred” states), but I like to request them that I will do my own research which company is most suitable for me.

Thanks.

[Positive AussieMember@positive-aussieJoin Date: 2011Post Count: 7]

April 10, 2011 - 12:24 pm

Hi Kimberly,

You would be really excited about your dream to own a Investment property in USA. Plus, you will be thrilled with the feeling of visiting Florida which has world’s best tourist destination – The Disney Resort.

I have been also searching for long time any suitable location to invest in US; and I have already shortlisted Florida as one of the top locations for this. The main reasons are –

(1) Huge price crash of 70%
(2) Millions of tourists every year; even after downturn of world economy. If GFC couldn’t stop them to visit, what would in future!!!
(3) Attractive sub-tropical warm weather. Not a great attraction for Australians because we are already blessed with plenty sunshine here, but really great for Americans who struggle with cold weather in many states.
(4) Houses are newer in comparison to many other locations because Florida has become red hot in just last 30 years.

I will be eagerly waiting your posts about your research in Florida.

Best of Luck!!!