What do you think about buying property in the US

[Epsilon]

Investing in USA is very beneficial and it gives you good profit. I bought two residential houses 3 years ago and I got very good profit on them when I sold them. So feel safe investing in USA.

[muppet]

Overseas deals come with danger

Kath Dolan

July 30, 2011
www.tic.com.au/
Building a Property Portfolio Free 52 ways to do it Safely


Recent warnings about US property scams should have investors doing extra homework.
When ASIC trumpets an investigation into Australian-based websites spruiking investment in the ailing US property market and Consumer Affairs Victoria warns about "dud" US property investments stitching up locals, you know something's up.
The official warnings follow complaints from consumers relating to "get rich quick" seminars and website schemes selling the idea of high rental returns from low-cost US properties.
With the Australian dollar on a high and the US property market floundering in a devastated economy, Australian investors priced out of local property are being urged to make hay in the US.

What the spruikers don't mention is the fact that many cheap US properties are in such poor condition and unappealing neighbourhoods that they've been untenanted for some time and are likely to remain so without expensive repairs.
Victoria's Minster for Consumer Affairs, Michael O'Brien, recently sought to raise awareness about the case of a Victorian man who lost many thousands of dollars after attending a US property investment seminar in Sydney a few months ago.
He signed up for a $7000 membership and a low-cost trip to the US (which he later discovered had thousands of dollars of additional fees attached), paid a deposit for a house and bought it without seeing it.
It turned out to be untenantable and when he baulked at handing over more money for repairs to bring it up to scratch, he pulled out of the deal, only to be slugged a further $17,000 in cancellation and advocacy fees.
A US lawyer recouped some of the latter costs but the investor was left out of pocket for the rest.
Because property investment isn't covered by the Corporations Act, companies promoting investments don't require a licence and can't be called to account by the financial services ombudsman.
"Currently the Corporations Act doesn't apply to property investments and that causes problems," says Gerard Brody, director of policy and campaigns at the Consumer Action Law Centre. Mr Brody is keen to see the industry brought into line.
"I think it would be good for all property investment advisers to be licensed so we know who they are and the regulator can keep an eye on them," he says.
"Financial services licensees are required to treat consumers efficiently, honestly and fairly in their dealings and that would be a good thing to also apply in these cases."
In the meantime, it's a case of buyer beware.
Tips for sniffing out a "deal" that's on the nose:

• Visit ASIC's moneysmart website for investment basics, advice on identifying scammers and a list of companies to avoid.
• Resist pressure from salesmen to sign up to deals on the spot.
• Bear in mind that overseas investments are outside Australian legal jurisdiction and therefore involve additional risks.
• Don't rely on a salesman's claims. Find out as much as you can about the company and the market you're considering investing in and seek financial or legal advice.
• Ask difficult questions. Is the salesman on a commission? If so, how reliable is his or her advice? If US property is so lucrative why aren't Americans snapping it up?
• If you think you may have been scammed, misled or unfairly pressured into a purchase, seek advice from Consumer Affairs Victoria.

http://news.domain.com.au/domain/hom...729-1i31i.html

[Dissindat]

Why do people not do any homework themselves when buying. It takes 5 minutes to identify bad areas thanks to the net these days. TRuth is there are plenty of great opportunities here and there are plenty of competent wholesalers selling them. Just avoid stupid places like Detroit and inner city slums.

[Abu]

Sharing important topic.
I think in USA real estate sector is not best for investment because all economy is slow down and people purchasing power is low .

[Dissindat]

Actually USA Real Estate is arguably the best investment right now because the economy is slowed down and credit is tight. Warren buffet describes it as being greedy when others are fearful.

[donna]

Michael O'Brien, recently sought to raise awareness about the case of a Victorian man who lost many thousands of dollars after attending a US property investment seminar in Sydney a few months ago.
He signed up for a $7000 membership and a low-cost trip to the US (which he later discovered had thousands of dollars of additional fees attached), paid a deposit for a house and bought it without seeing it.
It turned out to be untenantable and when he baulked at handing over more money for repairs to bring it up to scratch, he pulled out of the deal, only to be slugged a further $17,000 in cancellation and advocacy fees.
A US lawyer recouped some of the latter costs but the investor was left out of pocket for the rest.

I am surprised our local journalists haven't followed suit and reported experiences by local Kiwis signing up for the US properties.

[Dissindat]

Idiots who don't stick to good operators. Stick to reputable turnkey providers and the USA is a goldmine.

[olliestyles]

Idiots who don't stick to good operators. Stick to reputable turnkey providers and the USA is a goldmine.

Dissindat in your opinion who are some reputable turnkey operators?

[Dissindat]

I only know the cities I know Olliestyles. I can tell you who to avoid pretty easy. Which area are you interested in.

[olliestyles]

I only know the cities I know Olliestyles. I can tell you who to avoid pretty easy. Which area are you interested in.

Hi Dissindat, As a novice I am interested in areas that I guess I would call solid, where the returns are great for a hands-off investment. I have seen Dean's webinar and he makes a pretty convincing case for Memphis.

[Dissindat]

Well Memphis is a favorite market of mine. It has great fundamentals, strong employment and section 8 vouchers all over town!!
The top guys in that city without doubt are Reedy and Company for property management, Jim Reedy is the owner.

[donna]

So from looking at your 48 posts (all about US Property) I'd say you are one of these so called property promoters Dissindat....geez your posting style is so similar to Dean Letfus and you are way too knowledgeable about the 'numbers' of offshore investors purchasing in the US to just be 'another investor'. How about owning up to who you are I say.

Cheers,

Donna

[Dissindat]

Nope nothing to sell, I came to this forum to learn about N.Z. property and I figure I am allowed to comment on my own market. As far as I am aware who I am is none of your business is it? I suppose you wanted to see Obamas birth certificate as well??

[donna]

ha ha - funny - no not at all! I am sure you can appreciate over the years I've been running PropertyTalk - there have been many anon users flogging their wares under many guises most are sniffed out here eventually. IMHO while the US property market may be ideal for residents there are lots of traps when investing as a non-resident so it's important for all information to come out - not just the painting of a rosy picture which it is far from that esp. for small time non resident investors.

Cheers,

Donna

[Dissindat]

Well I know nothing about the non resident stuff. The Australians are buying massive tranches of homes here so it can't be all bad?