Hey there,
I’m brand new to the forum. I joined because I really wanted to learn more on the topic of
overseas investing, particularly an American investing in Australia.I am an investor in the USA (specifically Florida). I have closed many deals by wholesaling
properties. I am currently living in Australia for the year and I am wondering what the laws are for
wholesaling in Australia.To be a bit more clear, what I mean by wholesaling is signing a contract for the equitable
rights to a property, and then assigning that contract to someone else and collecting a wholesale fee
in the middle. Is that legally possible here in NSW, Australia?It would be really great to receive knowledge from someone who knows the major differences between
the USA and Australia in terms of real estate investing.Thanks,
CalebHi Caleb,
Welcome to Australia! I’m an American who’s lived in Melbourne/Torquay for the past seven years. I’m moving back to the USA in a few weeks but have fixed and flipped a few deals on options as well as developed and built new construction in in Geelong/Torquay. You won’t be able to “wholesale” in Australia. Even with your extensive experience in the US, the Aussie property market is full of traps for the unordained. Second, you have to put some time, energy and money into establishing the appropriate entity and tax structure before you invest in Australian property, especially if you are planning on moving USD’s across pond now or in the future.
Your largest obstacle to assigning contracts/options is that the government loses out on ‘Stamp Duty’. They have dropped the hammer on these types of RE transactions. In my opinion the juice isn’t worth the squeeze.
I’m happy to share my contacts in VIC & NSW who I know and trust and will be bale to advise you further. Do you have capital to loan? Shoot me an email or drop me a line.
Thank you,
John Carney | America Property Source I johncarneyonline.com
http://johncarneyonline.com
Email Me | Phone MeWork Hard. Play Hard. Profit Hard.
@americapropertysource Thank you for the quick reply! I appreciate the info, I just shot you an email!
Input on the topic of Australian vs American investing strategies still welcome! (:
Hi Caleb,
Check out the “Training Centre” on the Home Page for lots of useful information. The following link will take you to an Article on “Flips” which sounds like what Wholesaling means in the US. Have a read to see if it fits:-
https://www.propertyinvesting.com/flips/
Other than in the Training Centre, check out the “Creative Investing Forum” – that is where Flips, Wraps, and Lease Options are discussed. I don’t know of too many who do these, but they do exist in Australia.
Benny
Are you not going to come back to Florida? There could be some prolblems regarding remote management of your real estate if you return to the USA
Hey there,
I’m brand new to the forum. I joined because I really wanted to learn more on the topic ofoverseas investing, particularly an American investing in Australia.
I am an investor in the USA (specifically Florida). I have closed many deals by wholesalingproperties. I am currently living in Australia for the year and I am wondering what the laws are forwholesaling in Australia.
To be a bit more clear, what I mean by wholesaling is signing a contract for the equitablerights to a property, and then assigning that contract to someone else and collecting a wholesale feein the middle. Is that legally possible here in NSW, Australia?
It would be really great to receive knowledge from someone who knows the major differences betweenthe USA and Australia in terms of real estate investing.
Thanks,CalebKeep investing in the US mate, the Aussie market is to hot IMO.
I wouldn’t touch it unless it drops by 50% lol
Just my opinion :)
EngeloRumora | Ohio Cashflow
http://ohiocashflow.com/
Email Me | Phone MeF@#$ THE REST WORK WITH OHIO CASHFLOW TO INVEST
Hi engelo
I am a german who lives in victoria.
Have 2 houses in usa and 3 houses in victoria.
I strongly agree with you! Why invest in australia when you struggle to get 6or7% return and hope and pray that the market goes up (btw market in victoria is too high, just my opinion).
In usa I am getting 20 and 25% return and capital growth.
Just my 2 centsHi Bernie, where are you investing in the US currently? Most of the areas in the US which had strong returns seems to have eroded since the recovery, would be interesting to see what markets are still giving those strong returns.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Hi Bernie, would like to ask for the 20 and 25% return and capital growth you mention earlier, do u mind to share how long to get the return? Just interest to know more about US market. Thanks
Jonathan de Ho | www.mpighome.com
http://www.malaysianewpropertylaunch.com
Email Me | Phone MeMalaysia Property Investment Consultant
G’day Mate
I am an Aussie – doing wholesaling downunder is a bit different to what you will have experienced. Particularly if you do not come to grips with issues such as Stamp Duty, Income Tax and Gains tax. Being an out of towner makes it even more difficullt – which necessitates business structuring, deal structuring, tax structuring, finance structuring and the use of Nominees.If you have capital to put towards projects you can make excellent money but you will need a local to partner with you.
Hit me up if interested in a JV
regards
DeeHowdy crew,
A bit late to the party but I’ve just been learning about the wholesale philosophy in the US and was curious as to why it wouldn’t work here in Aus? If you have the correct structure in place in terms of incorporation, tax rego and pay stamp duty etc would it not just come down to finding good off market deals?
I know for eg here in QLD expats that have investment properties are a good opportunity to lock in significant BMV deals at the moment because of the new tax law relating to owning property in Aus but living elsewhere…Would be interested to hear thoughts and potential JV options if anyone is in QLD.
Cheers
Tyger
Email MeWe are what we repeatedly do. Excellence, then is not an act but a habit.
Big difference between an Expat and a Non Resident.
As an Expat you can purchase a second hand property so have the opportunity of purchasing below market value like the rest of us. If you are looking at flipping the property then certainly doable but need to consider the Stamp duty implications and other associated costs.
Cheers
Yours on Finance
Richard Taylor | Australia's leading private lender
Australia is a diverse land that is home to a wide range of fascinating natural landmarks and iconic destinations. It is a multicultural nation that is warm and accepting of people from all over the world.
Boasting some of the world’s most beautiful natural wonders like the Great Barrier Reef (the world’s largest coral ecosystem), Australian Alps and home to special faunas such as the kangaroos and koala.
As the world’s 12th largest economy, Australia is one of the most well-developed countries in the world. Property is one of Australia’s largest assets and a strong contributing factor that influences its economic wealth.
Jason D | CSI Prop
https://csiprop.com
Email Me | Phone MeAustralia is a diverse land that is home to a wide range of fascinating natural landmarks and iconic destinations. It is a multicultural nation that is warm and accepting of people from all over the world.
It also charges expats/non residents 38%-45% LTCG tax on property…..makes it a non starter for consideration now as far as im concerned.
We haven’t sold our Sydney IP’s…….but we haven’t bought any more either since they removed the 50% LTCG tax discount for expats either.
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