Latest opinion from Paul Clitoroe (money magazine)… Stay away from US properties as aussie investors have NOT
been given full pictures of investment condition @ USA. There are bargains out there… no doubt.. but if through broker via broker via broker.. obviously… a dud investment.Aussie investors might think like investing in Australia….but it is completely different game..
Playa Chicken wrote:Do you think the fact that all the US states are bankrupt makes any difference to which one you invest in?
I dont have updated stats but im pretty sure that all the states arent bankrupt. Most are facing massive shortfalls though.
http://freedomarizona.wordpress.com/2009/01/30/46-of-50-states-could-file-bankruptcy-in-2009-2010/
People invest there because the yields are significantly better than oz. Plain and simple. Of course basic finance knowledge tells you that > return leads to > risk so you need to understand what you are doing.
All of my research was based in Georgia/Tennessee. The south was not as badly affected as a lot of other areas in the US. Unemployment levels are stable, new business is moving in, houses are gaining 6%/annum and home sales (at the non-foreclosure end of the market) are increasing every month.
I bought my first foreclosure there and have now got it ready for sale. I have a great team over there and am totally committed to invest time and money into the area to gain solid returns.
Just my experience.South East is where is its – Florida or possibly Atlanta.
You might hear the mid west has cheap properties but where are your tennants or secondary buyers gonna get an income from?
Stick to where the monies at! You can get great deals in these places for under 40K(US) and get a 15 %+ ROI. Buy up 10 of those and it’;s a lot better than a 400K house here.BTW someone suggested California… but unless you want to fork out big on ONE home its not worth it .. also taxes are killer there.
I have a lot of relatives in Ohio & LA. I'm trying to find out as much as I possibly can about the location and planning to visit them around next school holiday. I will also try to have all my finance ready before I go. My cousin seem to like the idea of me investing property there and he is quite willing to do business with me.
I don't quite like the idea of doing business with relative but if I have no other choice may be.
Anyone know much about Ohio and LA, any suggestion or any specific location I should look into if I am there.
I have seen a LOT of interest in the Michigan market, primarily Grand Rapids. Low crime, high growth and 3.2 Billion in public/private investment in medical university and hospitals.
I find Texas to be one of the best and safest markets to invest in America
Lets look at why
If Texas were a separate country it would have the 10th largest economy in the world
It is the highest export state in America
Despite the debt in America, Texas has no state debt
It is the fastest growing state, with over 1000 people per day moving there.
The state unemployment is way lower than the rest of the country
70% of jobs created in the United States in the last 12 months we created in TexasTo me where ever you buy must be based on the long term viability of the area. Does the city have growth what is the potential for the area to expand. You need to ask the same questions as if your were investing here.
To may people buy in the United States because it is cheap. It is true that you will get great deals there. However the real cheap properties being sold by the banks have 2 problems firstly if they are so good why will the banks not finance them and secondly they are often in dying or at least declining cities.
What I like about Texas is that you have cities with many industries not like some cities that have not kept up with the time and are now paying the price.
Finally as my business partner often tells me you can be in the best market anywhere however if you are dealing with an idiot it is still a problem.
Do you research carefully, if you are going to use an buyers advocate then make sure they have been involved for a time and not the last 5 minutes. I first got involved in Texas in 2005. I then ran a real estate firm in 2006. I do not claim to now everything but I think I have some idea about that market
Happy research and investing.Nigel Kibel | Property Know How
http://propertyknowhow.com.au
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Hi Steve,
Do you mind if I ask you who the Accountants are in Australia that have Aust & USA tax experiance ? I have asked some other companies and most appear to have some "exclusive" rights or want you to buy a property through them before they give you info. It's like it's some big secret but my opinion is that if nobody is willing to give some basic information then they may have something to hide ??
Hi ALL,
I am different again. I have deposits down on 3 houses in Kansas City MO. From what I have read this is a stable City not a boom / bust type of place with lower than average unemployment and steady population. All houses are offering 15 – 20%
returns.
It looks like everyone has different ideas on what are good places to invest. Each to their own as long as you are doing something that you believe suits your goals then go for it.Hi Speedy Gonzales,
I have found that there are a number of business’s out there that do charge for you to get the info. I have spent many months looking into the USA market, I have met Andrew from myusa, and there joining fee was I think $500. One can find the info out there you have to spend a lot of time researching the market. I don’t have a problem paying a business to supply me with the info, I do have a problem if the info they supply me with is sales hype, not backed up with sound data….this I think is the problem, you need to know the real vacancy rates for Orlando…Miami….Michigan…….Atlanta….and any other market anyone suggests you invest in.The companies that are out there except maybe one or two DO NOT have the kind of information that property investors need.
I have been investing in real estate in Sydney for many years, the notion of positive cash flow does not exist….it is all capital gain.
I am investing in the USA and there are good deals out there.
If you want a good tax accountant I can give you name….it will only cost you $100
Just kidding
Jeff
RickH – who did you go through to purchase the properties? How much "other costs" do you have to factor in above the purchase price?
Realise some folks are buying properties outright with cash, but can one still claim the interest part of the loan as deductions as we do in Australia? Does that still apply?
Have just been looking thru http://www.myusaproperty.com.au – anyone had experience with them?
Kim
Jeff – I'm thinking of giving the people are my usa property a call tomorrow but I think if the fee of $500 (AU I assume) involves everything in putting together a purchase of foreign property in the USA, it's not too bad? However will there be other fees on top of this? How much does your accountant charge for the same service?
KimHi Kimbopumpkin,
There are more fees involved up to $3000 to purchase a property, from what I understand once you pay an entry fee you get access to further info.
I can give you you 2 accountants that can advise you one charges $170 per hour, the other $330 per hour, the difference being is that the $330 per hour fellow has over 17 years experience with Price Waterhouse Cooper doing US Tax.
My email is [email protected]
The tax advise gives you the way to structure your purchase, if it is for one purchase then you will be given advise for that.
My strategy is to purchase a number of properties for positive cashflow so I can supplement my income.
You need to think about what your objectives are capital gain or positive cash flow.Jeff
Jersey City in Greater New York Metropolitan area is an exceptional area for investment. It is considerably cheaper with prices starting from just USD265,000 for a high specification development.
The location of Jersey City is excellent – just 30 minutes to Wall Street and is a quicker commute to Wall Street than from Central Park and Times Square.
Hi Kimbopumpkin,
I am going through MyUSAproperty.com.au for the 3 houses we are purchasing. All is going well and we should be closing soon.
The houses we bought have been fully rehabbed(with photos) and are currently occupied.The $500 is an itial fee. Prior to paying a cent you can have either face to face or telephone discussion with then where they outline everything and it is all clear what you have to pay for what services. They can assist with finance here and USA, setting up american bank accounts, setting up LLC and liasing with closing agents, yourself and attorney to make sure all the i's are dotted and t's crossed.
To be honest there is alot of paperwork to go through, but the properties look good and the information given on the areas have matched with my own research.
I feel confident with my first stap into US property market. I have owned investments in Australia and they were money pits.
I am looking for cashflow and long term 5 to 10 yrs some capital growth to perhaps fund more purchases …who knows.
Kimbopumpkin contact tony at my usa properties on [email protected] to get more info.
hi speedy
I have an accountant that does both us and aust accounting and has many years experience but he does charge for his assistance and I don’t put these people on free to air boards
I am interested in the following places and the people here to give me their views
miami
ohio
la
new york
vegas
and tampa
I am researching these areas at the moment for a group purchasing power
we are not buying the properties we are funding us investors to buy the property as a form of jv
I will have a look at a couple of the links and happy hunting allkansas city missouri has proven to be a great investment.
lower than usual unemployment.
current population growth.
future job growth outlook strong.
diverse economy with large blue collar work force.
rehabbed homes in GOOD neighborhoods in the $30k-$40k range that rent for $700-$900 per month.Funny thing this US investment, everyone has a totally different opinion of where to invest.
Why doesn’t anyone talk about areas such as San Fransico, Oakland, Memphis, Seattle
As an outsider these areas seem to be very solid and they have cheap property’s as well as forecolures aswell
any thoughts experts?
To nIgel and Jason – <moderator: delete flame> Why don't you both write constructive comments that help people and have your little tiff via your emails or something. If you are promoting your individual businesses then do it in an objective fashion – add your biz tag line make a decent comment and be done with it or just go away.
Here's an interesting take on the US market from a guy who has been there and done that for years. Note, he is trying to get you to invest in his strategy in Australia, but that being said, what he has to say about the US and the 'mindset' is right on the money from my experiences in the US since 2008. You won't hear this from the Nigels, Jasons, Michaels and Vinces to name a few etc on this forum. Every newbie investor should know this information before they start their O/S investing journey. It is information that you need to be aware of and to plan for should you wish to invest in the US
Hope it helps.
http://www.rickotton.com/the-truth-about-buying-property-in-the-united-states/
morekc wrote:kansas city missouri has proven to be a great investment. lower than usual unemployment. current population growth. future job growth outlook strong. diverse economy with large blue collar work force. rehabbed homes in GOOD neighborhoods in the $30k-$40k range that rent for $700-$900 per month.Hi morekc
I am looking for properties in the 30-40k range with good yield in kansas city.
but I dont know which area to look for, not sure how to start.could you give me some advise please?
thanks in advance
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