Forums / Property Investing / Overseas Deals / American Foreigner Investing in Australia?

Viewing 14 posts - 1 through 14 (of 14 total)
  • Profile photo of CalebCaleb
    Participant
    @calebcruz
    Join Date: 2016
    Post Count: 2

    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,
    Caleb

    Profile photo of John CarneyJohn Carney
    Participant
    @americapropertysource
    Join Date: 2010
    Post Count: 15

    Hi 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

    John Carney | America Property Source I johncarneyonline.com
    http://johncarneyonline.com
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    Work Hard. Play Hard. Profit Hard.

    Profile photo of CalebCaleb
    Participant
    @calebcruz
    Join Date: 2016
    Post Count: 2

    @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! (:

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,325

    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

    Profile photo of FredWisleyFredWisley
    Participant
    @fredwisley
    Join Date: 2016
    Post Count: 12

    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

    Profile photo of EngeloRumoraEngeloRumora
    Participant
    @engelorumora
    Join Date: 2010
    Post Count: 618

    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,Caleb

    Keep 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/
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    "Make a PASSION an OBSESSION and you'll never work a day in your life"

    Profile photo of bernie006@hotmail.com[email protected]
    Participant
    @bernie006-hotmail-com
    Join Date: 2009
    Post Count: 12

    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 cents

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    Hi 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
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    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Jonathan de HoJonathan de Ho
    Participant
    @john2141
    Join Date: 2016
    Post Count: 1

    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
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    Malaysia Property Investment Consultant

    Profile photo of deandean
    Participant
    @goldfx
    Join Date: 2016
    Post Count: 2

    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
    Dee

    Profile photo of TygerTyger
    Participant
    @tygerlyons
    Join Date: 2019
    Post Count: 0

    Howdy 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 Me

    We are what we repeatedly do. Excellence, then is not an act but a habit.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 11,992

    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 | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
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    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of Jason DJason D
    Participant
    @jasondras80
    Join Date: 2019
    Post Count: 0

    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.

    Profile photo of DeanCollinsDeanCollins
    Participant
    @deancollins
    Join Date: 2015
    Post Count: 372

    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.

    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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