- May 5, 2011
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Purchasing Property in the US
- Thread starter Lyyynnnchy
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I have 3 letters for you URF - US Masters Residential Fund
Do a search under the ASX
its a residential property fund from Dixons advisory trading on the ASX where they have bought up a large amount of residential property ($80million) in the new york area.
If land prices improve in the US and the Aussie dollar drops the share price of this will go through the roof.
It also pays a handy little dividend
Pluck some equity from your home and get into this for 5 years
DYOR
Do a search under the ASX
its a residential property fund from Dixons advisory trading on the ASX where they have bought up a large amount of residential property ($80million) in the new york area.
If land prices improve in the US and the Aussie dollar drops the share price of this will go through the roof.
It also pays a handy little dividend
Pluck some equity from your home and get into this for 5 years
DYOR
- Thread starter
- #79
Yeah you have to be careful though. A lot of those properties will have unpaid taxes, rates etc totalling in the $1,000s and even $10,000s
- Thread starter
- #81
Yeah definitely. I have put my plans on hold for now for personal reasons but I'm heading over to the US in July/August for 6 weeks so will most likely purchase another then.
US recovery will go on for years. You should have a good 2/3/4 years to buy property at a good price
- Thread starter
- #83
Thanks matewhat amount can you borrow for a property in the u.s ?
I can secure a loan at 3.9% with 50%+ down from a private company. The banks will only refinance at the moment...thus creating the cheap houses. A lot of the houses are only accepting cash offers though. You can pay with cash and then refinance through a bank for up to 75% of the valuation at a later date, this is my chosen strategy.
I have the upmost trust in the private company you can refinance with as they are negotiating the sales, closing the sales, settling the funds, carrying out the renos and managing the property. I'd just prefer to go through a bank that is ultimately backed by the government over a private company
- Jul 23, 2010
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what sort of property taxes (as a % of market value) are you paying atm on your properties?
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- #85
Well it's hard to put it as a % of market value as I havent yet had a valuation done on my property since the renovations have been completed. On the property I purchased for $35,000 and spent $5,000 renovating, I pay $809 a year in property taxes. I expect that property to be worth around the $70,000 - $80,000 mark now.
I will have a valutation done before I fly over late July so it will be interesting to see what it comes in at
- Thread starter
- #87
Thanks for that mate
No worries. It's becoming a great passion of mine so feel free to ask any questions thata rise, I love talking about it hah
- Thread starter
- #88
There's currently a property that is priced at $329,000. I would think you could purchase it for about $275,000. If you have $100,000 you can finance the remainder at 3.9% fixed for 10 years over 30 years.
The property is a 14 unit apartment building located 500m down the road from a university. 12 of 14 apartments are occupied. Remaining 2 need some cosmetic renovations
Financials are below
In:
Rent - $84,000.00
Out:
(Annual) Actual Taxes - $3,613.00
(Annual) Estimated Insurance - $3,552.00
(Annual) Actual Property management (optional) - $7,560.00
(Annual) Actual Lawn Care) / HOA - $960.00
Total Costs - $15,685.00
Net: $68,315.00
Earn:
Total yearly equates to - $68,315.00
Total monthly equates to - $5,692.92
I'm tempted to go something like this for my next purchase. I would first offer $200,000 as it's a reposession
The property is a 14 unit apartment building located 500m down the road from a university. 12 of 14 apartments are occupied. Remaining 2 need some cosmetic renovations
Financials are below
In:
Rent - $84,000.00
Out:
(Annual) Actual Taxes - $3,613.00
(Annual) Estimated Insurance - $3,552.00
(Annual) Actual Property management (optional) - $7,560.00
(Annual) Actual Lawn Care) / HOA - $960.00
Total Costs - $15,685.00
Net: $68,315.00
Earn:
Total yearly equates to - $68,315.00
Total monthly equates to - $5,692.92
I'm tempted to go something like this for my next purchase. I would first offer $200,000 as it's a reposession
Not including interest repayments on loan.
Do you have a link to this? Or any of the other comapnies you are dealing with websites? Is $583 per month per appartment the average return for an appartment over there?
- Thread starter
- #90
As everywhere it depends where you buy
I'm getting $750 and $650 for my 2 apatments in Palm Beach
Sorry I dont want to give up the link as it's through the investment firm I go through. If you like I can send him your email and you can have the properties sent to you via email. That way, if you ever purchase anything I get a commission
fair enough. Would like to do some of my own research before contacting an agent or having one contact me.
Would prefer my contact details are not given to some type of agent that I have never met. Found it anyway
http://wcequitygroup.com/
http://www.loopnet.com/Listing/18007849/4734-48-North-Highway-17-De-Leon-Springs-FL/
60 Day rental guarantee could be a concern
Would prefer my contact details are not given to some type of agent that I have never met. Found it anyway
http://wcequitygroup.com/
http://www.loopnet.com/Listing/18007849/4734-48-North-Highway-17-De-Leon-Springs-FL/
60 Day rental guarantee could be a concern
Parasite
Norm Smith Medallist
Why would someone sell an asset earning that much a month for that price?
- Thread starter
- #93
It's most likely the bank selling it. The previous owner would have had a mortgage totalling $100,000's and the rent wouldnt have covered it. The bank/owner is just trying to get what they can for it now
That's like a 25% yield. Surely that can't be right?
- Thread starter
- #95
Well my place cost $35,000 plus a $5,000 reno. I'm earning $1,450 a month
Why does anyone rent? You could pay off the house in 3 years?
- Thread starter
- #97
Good luck getting a loan from a bank. Not a lot of people in America have any cash, a lot of those that do have either been completlely scared off property or have indeed brought up a number of properties. The best properties go within 24hrs
Troubadour
Cancelled
US credit score system can make it tough to get a loan.
Elixuh
See you on the 9th green at 9
One question I have (just from browsing on the internet). If you're buying properties at these prices what kinds of areas are they situated in for 35,000? If they're in low - very low socio economic areas surely the tenants you'd be attracting would be a bit of a gamble (i.e. possibility for just trashing your house etc)? Would you say that it's risky in that respect from your experiences?
- Thread starter
- #100
Definitely. My 2 properties are located in a C class and lower B class ares
They use these terms when accessing the different areas. I have had my places rented since October and and have had no problems yet. The only thing I have had asked of me is to install an airconditioner in one of the units. There was already wiring there from the previous airconditioning unit so that was $820 I think for a small reverse cycle installed.
I have insurance, 1 months bond and also the tenants pay one month in advance. If the place gets trashed I have the bond, 4 weeks rent and rental insurance to cover any damage. I renovated pretty much the whole proeprty for $5,000 so any damage, as long as it's not major should be able to be covered by the bond and 4 weeks rent. If is major, well thats what the insurance is for.
