All Topics / Overseas Deals / Property in the USA

Viewing 15 posts - 21 through 35 (of 35 total)
  • Profile photo of jeff2investUSAjeff2investUSA
    Member
    @jeff2investusa
    Join Date: 2010
    Post Count: 54
    USA wrote:
    hi there

    Just read up above someone called "Troy" on this forum has foreign national finance available, could someone please let me know his details

    Thanks

    From my research it is very difficult to get loans in the USA for foreigners. Also the foreign currency component would have a negative effect if the Aussi dollar starts to drop against the greenback, your loan would not be as attractive.

    Better if one has equity in a local property to try and get a line of credit here and pay local rates

    Jeff

    Profile photo of USAUSA
    Member
    @usa
    Join Date: 2011
    Post Count: 8

    Thanks for that Sav, got your message and have researched, 

    We are considering using Loans USA but interested in other quotes too,  Not many people seem to be able to actually get the finance.  We looked into HSBC also but our purchase price isnt over 100k and we will have renters.  Seems to be the general questions we are facing.  The place Loans USA have sourced for us is a rate of 5% for a 30yr loan term on a 65-70% lend, we can have the home rented out.   this is the best deal we have seen so far.

    Anyone else had anything similar to this?  We are looking to buy in Tampa Florida.

    Profile photo of EdmundStEdmundSt
    Participant
    @edmundst
    Join Date: 2010
    Post Count: 28

    I looked at LoansUSA. The $4400 fee (for non MyUSA costumers) was too high for my liking. If purchasing in the lower price range <$50,000, all of these add on fees just decrease my profits and defeats the purpose of purchasing in USA.

    Profile photo of USAUSA
    Member
    @usa
    Join Date: 2011
    Post Count: 8

    so who are you using for finance?  I know the fee is a little on the high side, but I was hoping to use them for the first deal then checkout who they use.

    Profile photo of EdmundStEdmundSt
    Participant
    @edmundst
    Join Date: 2010
    Post Count: 28

    Paying with cash for 1st property.

    I would rather spend $1500 on flights / accom and personally head over to the US and talk to banks about the possibility of getting a loan than paying a $4400 fee

    Profile photo of MarthamelMarthamel
    Member
    @marthamel
    Join Date: 2010
    Post Count: 49
    Sav wrote:
    Thankz for the fast reply ……….speedy gonzales……….your nick suits you ahahhaha…….im interested in the USA market………have 30k in savings…..income 70k + girlfriend 50k …….we are both 26 years old and have one investment property in Melbourne renting out at $320 per week……..the property is worth around 400k ….owing the bank 245k………..what should be our next step to purchase in USA…..looking for postive cash flow deals……..the area im interested in is Miami and las vegas……..any advice or information will b appreciatted……….

    Hi Sav

    Sorry to come in on this thread so late. Another option with that amount of savings is to join a group purchasing apartments; the group sponsor should do all the research, look for apartments that have been mismanaged or are selling below replacement, with opportunities to either rehab or simply manage better, and they usually combine cashflow with capital gains – best of both worlds.

    You don't need to worry about financing, that is already taken care of.

    Just another option.

    Profile photo of luismanluisman
    Participant
    @luisman
    Join Date: 2004
    Post Count: 3

    Little facts I know:

    1. For cash flow positive properties tax on the income depends on the state. Check both the state and the IRS web sites for more information. I believe in Florida the positive cash is not taxed like the earned income is. You do pay porperty tax and this depends on the assessed value of the property which is done in December of each year by the county. In Miami-Dade the tax is about 1.9% of the assessed value. Information about the assessed value and the tax is available at http://www.miamidade.gov/pa/property_search.asp click on Property Information and use the drop down choice for Property Taxes.

    I believe the positive cash flow will be taxed in Australia. I am finding out with my accountant.

    2. Regarding condos and HOA fees. As mortgages in USA are non-recourse and people lost their ability (or the willingness depending on the individual) to repay and faced losing the property, investors started to keep the money from the rent and stopped paying any outgoings (mortgage, HOA fees, etc). Some HOA reacted by implementing a policy whereby if you have tenants the rent would go to the HOA account first and the HOA will pay you the remaining to your bank account after deducting their fee. If you are thinking on a condo, do check if this rule has been implemented as well as the level of unpaid HOA fees from owner occupiers.

    3. Mortgages for Aussies are 40% deposit for condos and 30% for single title or condos where each unit has its own land title (yes, there are some). The catch is that there is aminimum loan amount of $80,000. This means that for a condo you'll need to purchase something worth abpout $134,000 to meet the minimum loan amount and this means a deposit of $53,600 with closing costs of about $9,000. For $53,600 cash you could buy a nice 1 BR unit outright that could rent between $800 and $900 pm giving you 17.9% – 20.14% p.a. return before expenses. The closing costs when you don't have a mortgage come down dramatically (about $1,600). I was in the Kendall area of Miami back in July and went to check some properties at this price thinking they would need work but I was wrong. Actually 1BR units at this price are in good condition. Those going for about $40,000 most likely will need work but you'll be amazed how far 5 grand at Home Depot can take you.

    Profile photo of net_d2unet_d2u
    Member
    @net_d2u
    Join Date: 2011
    Post Count: 2

    Chinese Drywall hit hard on Florida…  anyone can share more info on this.  Housing affected by it has huge discount…

    Profile photo of sapphire101sapphire101
    Participant
    @sapphire101
    Join Date: 2006
    Post Count: 203

    Yes hundreds of thousands of homes have been affected. The problem is the plasterboard that contains the sulphur elements could be anywhere and all throughout the house, not a particular wall or room. This makes it a real procedure to figure out where it is. Basically every board needs to be drilled and sampled and then plugged up, re-plastered and painted if not affected. If the price of the house is low enough for you to re-plaster the lot and still be way in front, then it is probably ok.

    <moderator: delete advertising>

    Hope that helps
    Ian
    http:theblockblog.com

    Profile photo of sparky59sparky59
    Member
    @sparky59
    Join Date: 2010
    Post Count: 15

    Hi,

    It is important when getting in the US market to look at areas that have long-term growth. Florida, which was hit hard, is bouncing back and lots of potential. We deal with Orlando, FL and there are some good buys out there at present.

    If you want tax advice, check out the US Embassy website – it has a list of professionals.

    Regards,

    Steve
    http://www.usadreamhouse.com.au

    Profile photo of HighIncomePropertyHighIncomeProperty
    Member
    @highincomeproperty
    Join Date: 2011
    Post Count: 84

    I agree with previous posters, financing is VERY difficult for non-residents who are looking for mortgages in the U.S. By far your best bet is trying to obtain financing in Australia, using property over there as collateral.
    Florida is a good place to invest, although you need to be very cautious. There are also great cash flow deals, the best being in Michigan – I know some people on here are saying “Oh I’d never do Michigan, but will do Kansas City” – as an American and Investor (it’s what I do for a living) I can assure you that while on the surface they might look different, but when it comes down to it, a 20K home is a 20K home regardless if it is in Michigan, Kansas, Missouri or Florida :-) I’m not defending Detroit, I’m just saying that at that end of the market, cash flow should really determine where to invest, as I think capital appreciation is unlikely in all of them, and Michigan has the most generous Section 8 list with the longest list of people waiting.

    Profile photo of Mick CMick C
    Participant
    @shape
    Join Date: 2010
    Post Count: 1,099
    Sav wrote:
    Thankz for the fast reply ……….speedy gonzales……….your nick suits you ahahhaha…….im interested in the USA market………have 30k in savings…..income 70k + girlfriend 50k …….we are both 26 years old and have one investment property in Melbourne renting out at $320 per week……..the property is worth around 400k ….owing the bank 245k………..what should be our next step to purchase in USA…..looking for postive cash flow deals……..the area im interested in is Miami and las vegas……..any advice or information will b appreciatted………..Thank You

    Sav -im not endorsing purchase of US property. BUT in term of finance since you have equity in your IP – you can refinance it to a 90% LVR loan and cash out the rest for the purchase.

    Regards
    Michael

    Mick C | Shape Home Loans
    http://www.shapehomeloans.com.au/
    Email Me | Phone Me

    Same Banks. Better Rates. Served With a Passion.

    Profile photo of DetroitDan9DetroitDan9
    Member
    @detroitdan9
    Join Date: 2011
    Post Count: 63

    @highincomeproperty

    There is nothing wrong with defending Detroit! That is the market I invest in ;)

    It is a great market that has a lower entry price point with great cash flow. I am trying to buy up as much as I can right now because I know things will not be like this forever.

    -Dan

    Jayman
    Participant
    @jayman
    Join Date: 2005
    Post Count: 63

    Hi All,

    With all the different posts on this forum, ranging from those that have actually traveled to the US and have gone through the process of purchasing property, and from those that have purchased US property from over here without having traveled over there, as well as those that would like to invest in US Property, but are not sure how to go about it, or where to go for help and advice, It's very clear that there is still a lot of confusion being thrown around.

    Yes, many would be investors have brought property in the US and have done everything wrong, leading to it being a nightmare for them. A number of investors have done their homework and have brought very well.

    Most first time buyers of US Property are not aware of the many differences in purchasing over there, as well as such things as Tax Implications..What structure should you buy through ( most people have heard about an LLC, but how many actually know what is an LLC or it's implications, or about other forms of Business Structures, both for an individual or company?) Buying through or setting up your own SMSF? How about the right location? As even buying in the wrong part of a street can make a huge difference, never mind what City / State / Suburb is right for you? Are you after mainly Cash Flow  / High Yield, or longer term Capital Gains? Would you want to buy an already fully renovated property ( surpassing Government housing Standards ) making sure you are buying a FREE and CLEAR Title that contains NO Hidden Nasties, Never mind qualifying Tenants, ( Do you know about Section 8 Tenants with the Government Guaranteeing the rent?) And Property management can be a nightmare if you choose the wrong company.

    Unless you have the time and money and are able to do all the above due diligence, then buying through a local source will not only alleviate all these concerns, it will save you money, time and many headaches. Would it help if you could also learn how to invest in the US properly, and also have a locally based US Registered Tax Agent to look after and guide you safely through the US Tax system, as well, have your US Bank Account opened locally, with all the Due Diligence and Research done for you already and an ongoing client service structure in place to help you?

    The problem is that there are many local sources, some good some not so good.

    <edited – advertising>

    Jeff

    Profile photo of robszostarobszosta
    Member
    @robszosta
    Join Date: 2011
    Post Count: 1

    Hi all,

    From someone that has been helping Sydney investor in purchasing US investment properties, and has purchased many myself I concur with the last comments by Jayman.  You need someone with local knowledge and experience.

    <edited – advertising>

    Rob
    [email protected]

Viewing 15 posts - 21 through 35 (of 35 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.