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I arrived in the USA in Feb this year to look at properties - I am still here and have 9 properties at present - all I bought and have rehabbed for less than $15K each. The rental return I am getting is equivalent to 22 - 25% ROI after expenses! I am closing on a block of 4 x 2 bedroom flats with garages 13 years old at present for $89K. The first few are cash, the rest no problems with finance. Now have a flag here with properties, bank account, lawyer, rental manager etc set up - more deals than I could ever explain although I must admit my first deal I got burned on because I did not understand the area etc. I see a company in QLD peddling deals in the upper $60's with a good return; I would rather have my 2 - 3 doing the same for the same price. Prepared to answer any questions (within reason and knowledge base) I am at present based in Holland MI USA and have now been able to get an E2 Visa, so hope to have about 50 properties in the next 2 years... Easy and good returns. Sold my block of four flats in Wynnum QLD that was returning 2 - 3 % in Australia for $1,4 million and using the proceeds here!
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Sounds about right.
You sound like you are doing very well. The prices you are buying at are realistic, based on the risk which is not to be understated. I have family living in the U.S, one of whom has been particularly stung by the economic crash there. The news I'm getting from the coal-face is grim. Whatever official unemployment statistics you are reading you can double. The politicians are lying. The country is bankrupt, it's monetary policies indefensible. Speaking from personal experience Americans don't cope well with any form of disorder. If the current depressed economic conditions prevail indefinitely the country could become a dangerous place to do business in. So in reality, the returns you are making are relative to the risks you are taking. -
Here is a post made by Whitt recently that is worth reading:
Doing your homework is essential!Originally posted by whitt View PostNeil Janman did a report on buying in USA recently
An extract.....
Quote:
A deadly trap for Aussie investors.
by Neil Jenman
Here's a confident prediction: Hundreds (probably thousands) of Australian investors are going to lose millions of dollars in the American property market.
Right now, it seems to be all the rage, the latest fad. Buy real estate in the United States. It's easy. Prices for American homes are so low and our dollar is so high that an investment in 'the home of the brave and the land of the free' seems like a really good idea.
Unfortunately, it's not a good idea. For the average mum-and-dad Australian investor, buying real estate in America is a very bad idea. Never mind what the Aussie spruikers tell you, never mind how good it sounds, it really is too good to be true.LisaComment
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Brispb, you forgot to give me the link where I can buy your books, DVD's, seminars and mentoring services.Comment
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Opinionated
Hi ChrisD,
Unfortunately I do not have books, videos, cd's etc. I am a real preson who has real properties unlike some people probably like you that sit and comment on and dont have any money in investment properties. Why dont you get a life and appreciate that there are actually some people out here who unlike you would like to assit others that are doer's not ******s.Or maybe you are an import who thinks the world owes you a living.
Get a life and get a job
PeteComment
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Brispb
When you refer to dollars, relating to both
countries, do you mean $AU or $US or the
same one for both countries?
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US is a great place to invest if you do the right due dilligence. In the right location you can gain great cash flow and right at this moment the best strategy to have is cash flow and at least a 10 year projection. I always go to the countries first and then find my team on the ground and then use them, especially buying agents, where they are acting for you and not the bank. They can save you a fortune and really know their stuff.
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I am an investor and like off-plan a lot. I Invest only a fixed amount of money and not everything and until prices will rise I think this is best solution for making money. If you pay only 50000; for example and price goes up for 5% you are actually getting 10% rise. It's almost you would be using leverage on stock market. Of course from view of holidays I would prefer ready made property. Also I think until prices will rise at current stage it will not be possible to make more money with renting property than reselling.Comment
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Off Plan
Hi Quenby, I have only tried that once and in fact lost money - it was in Sydney some years back where thre prices actually bombed out beofre building and I still had to honour the contract, so again - Buyer beware.
I have just settled on a 10 plex block of efficiency units (I think we call them studios / bachelor flats in NZ and Aus) for US $ 108,000.00. They are all rented under section 8 housing and the government will be sending me a cheque every month for 10 x $585.00 = $5850.00 = $70,200 pa before insurance, maintenance and taxes.
The aforementioned expenses run at 27% - $18,954.00 giving me a return of $51,246.00 on the investment of $108K. You do the sums!
Cannot beat this investment easily and again it took me a few months to find the deal, do due diligence and close. Again - beware of the spruiikers - you have to be here or have family or someone on the ground as the realtors are also struggling and will as in any country feed you whatever info they deem you will suck in to close a deal.Comment
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hi brispb,
whereabouts is your deal, sounds fantastic. i'm buying in a city called sarasota in florida, looking at net yields of 15 plus in good school areas and future potential. have bought 4 so far but you can buy one with a mortgage at 70%LTV. condos in good areas can be had for as little as 35k us dollars, the prices are unreal and these yields are 24% plus. i'm setting up a us sourcing company as many people i know want to get their mney out of the euro whilst it's still strong, currently in spain, and it will have to crash very soon as the banks and cajas have so much debt. The country doesn't seem to have one developer left standing!!!! It really is a no brainer, but the crazy thing is the Spanish gov expect institutions to buy their bonds when if you compare it too ireland, it's actually a lot worse off, where's the sense in investing in a country that will have to default...the ECB and the germans can simply not keep bailing out but unfortunately the politicians refuse to admit that the whole single currency was a bad idea!!!!madness.Comment
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Saratosa
Wow that is magical and I wish you all the best with your purchases! I was actually going to fly down that way next week as the snow her ein Michigan is driving me absolutely crazy and I need some warm weather to thaw out in!
I have been reading about the Euro problem and a lot has been written about it in a daily catch up I get called "sovereign Man" which is a free daily email (and of course you can join the paid one as well - I did but not worth it as almost as much is in the free version btw)
If you are ever States side I would love to chat and can email you my phone number if interested. Once again good luck and there are heaps of bargains out there BUT talk is that htis year is going to bring double last years foreclosures so hang in the ride may still be coming. Take care!
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there is so much shadow inventory, it's untrue, I have been speaking to lots of banks in the area and they generally all admit but what they are doing is just letting the foreclosure stock drip, because if they were to release them all onto the market, it would take another dive, so again it's the policymakers interferring with sentiment. we saw all the right signs whilst there, new supermarkets opening, restaurants, stores and a real buzz to the area we've identified a small area of sarasota that we want, and it's pure figs, if they don't stack up in terms of yield or in wrong location we don't buy.
I have a hefty portfolio in the uk and bought that in 97 when prices were realistic and i believe that will have to have a heavy correction. it least the yanks know how to take their medicine. whereabouts in michigan are you buying?we'll be in the states in april, my email is [email protected] it would be good to chat.
if you do go down, hope it's warmer than when we were there in dec, it was 0 some nights...not good...and 12 in the day, when's global warming going to start that's what i want to know.
i'll sign up to sov man, i watch bloomberg all day and have been watching davos for the last couple of days, those guys really think we're all stupid!
good luck with your buyingComment
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Good thread. I have learned some tips here. Taking everything into consideration, would you guys advise if some one wanted to buy a property in Miami, Florida?Comment
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As the old saying goes "be careful putting all your eggs in one basket."Originally posted by ellalouise View Post
The advantage to buying in one area, is that you get to know it.
The disadvantage is that if something goes wrong in that area, all your properties could be there. Also all the properties would be affected by the same employment conditions etc.
Just something to think about!
RossBook a free chat here
Ross Barnett - Property AccountantComment
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