Purchasing Property in the US

[MightySaint]

Definitely. My 2 properties are located in a C class and lower B class ares

Where do you get the rating for the area? It's something I've considered for a while now and the advantage is that there are genuinely a lot of cash flow positive opportunities, but I wouldn't want it in an area where you need a shotgun to collect.

 

[Lyyynnnchy]

Where do you get the rating for the area? It's something I've considered for a while now and the advantage is that there are genuinely a lot of cash flow positive opportunities, but I wouldn't want it in an area where you need a shotgun to collect.

Sorry for the late reply, hadnt seen this post

You get the ratings from agents and property managers. They can run suburb profiles for you which is good when you're interested in a property.

If you're interested in a property or area, enter the address into Trulia.com and it comes up with schools along with ratings, crime rating along with recent crimes in the area with a pinpoint exactly where it happened along with a description, public transport rating, restaurants, bars etc

 

[JohnW]

Hey Lyyynnnchy, how are the properties in the USA going? I found this thread interesting since it started up.

 

[Power Raid]

Hey Lyyynnnchy, how are the properties in the USA going? I found this thread interesting since it started up.

With the FX dropping and the US recovering I dare say he would be making a killing provided the purchase price was right

 

[Lyyynnnchy]

Hey Lyyynnnchy, how are the properties in the USA going? I found this thread interesting since it started up.

With the FX dropping and the US recovering I dare say he would be making a killing provided the purchase price was right

Going well. I put one up for sale and that settled Saturday (Friday US time). The recent 15% drop in the AUD means an extra $12,000 which is nice. Preference was not to sell but I need the money for a business venture. I'm keeping the one property containing 3 apartments that returns $1,950 USD per month for the time being

 

[Ghostwriter]

Going well. I put one up for sale and that settled Saturday (Friday US time). The recent 15% drop in the AUD means an extra $12,000 which is nice. Preference was not to sell but I need the money for a business venture. I'm keeping the one property containing 3 apartments that returns $1,950 USD per month for the time being

How much appreciation in price have you had?

 

[JohnW]

sounds good. did you return a profit on the the one you sold (excluding exchange rate?).

 

[InspectorRex]

is that profit taxed lynchyyyyy, who do you even register all this info with in order to pay the proper taxes applicable if any.

 

[Lyyynnnchy]

How much appreciation in price have you had?

sounds good. did you return a profit on the the one you sold (excluding exchange rate?).

is that profit taxed lynchyyyyy, who do you even register all this info with in order to pay the proper taxes applicable if any.

The Palm Beach property I sold for USD$93k with the dollar being about 89c at the moment. I purchased for USD$35k + USD$10k on renovations when the dollar was about $1.03. The Jacksonville property has had minimal capital gains.

Due to the tax treaty with the US I will be taxed the same as if I had purchased the property in AUS. I will pay a flat 30% to the US while the difference if positive, will be paid by myself or if I overpaid, by the aus tax office.

 

[JohnW]

Hi Lyynnnchy whats your thoughts on this:

http://www.fool.com/investing/gener...-below-the-housing-market-is-tumbling-at.aspx

No idea if the website is credible.

 

[Lyyynnnchy]

Hi Lyynnnchy whats your thoughts on this:

http://www.fool.com/investing/gener...-below-the-housing-market-is-tumbling-at.aspx

No idea if the website is credible.

Definitely less properties on the market than 24 months ago. I've been flat out recently in a new job so I haven't been able to do as much as I would have liked

 

[Lyyynnnchy]

For those that are interested, I'm starting a website to help those that are interested in properties in the US. My services will include

Sourcing properties
Setting up LLC
Organising purchase / settlement
Organising property management
Organising renovations if needed
Sorting out US tax return

I will be offering a rental guarantee of around 30 days and will also be looking at some sort of buy back guarantee should the client not be happy with their property...still a lot to think about on this one though

 

[Lyyynnnchy]

Hi Lyynnnchy whats your thoughts on this:

http://www.fool.com/investing/gener...-below-the-housing-market-is-tumbling-at.aspx

No idea if the website is credible.

The headlines a little misleading. Stock is tumbling while they say prices are rising quicker than historical due to the shortage.

 

[Power Raid]

those that bought US property are probably looking like geniuses now.

the fx continues to slide whilst the US housing continues to recover

 

[Splash Brother]

For those that are interested, I'm starting a website to help those that are interested in properties in the US. My services will include

Sourcing properties
Setting up LLC
Organising purchase / settlement
Organising property management
Organising renovations if needed
Sorting out US tax return

I will be offering a rental guarantee of around 30 days and will also be looking at some sort of buy back guarantee should the client not be happy with their property...still a lot to think about on this one though

Lyyynnnchy, I'm new to big footy but was wondering if I can ask you a couple of questions in relation to this topic. There is not a lot of info around especially in relation to starting a LLC, borrowing from a US bank and lodging tax return

 

[Splash Brother]

Lyyynnnchy, I'm writing from tassie. Just want to ask you a few questions in relation to your US house purchases.

How are they going if you still have them?
Did you set up your own LLC and sought finance yourself or did you have a company assist you with it?

Have you heard of a company from Victoria (John Carney) called American Property Source, they assist Australians with the administrative side of things (LLC, finance, property management companies, as well as sourcing properties in Phoenix and Cleveland). What, if any are you thoughts on this company. Ever heard of them? I am thinking bout trying with them but still a little unsure.

Any info or assistance would be greatly appreciated.

 

[JohnW]

I would have thought the the house price jump in USA and the AUD/USD exchange rate, makes this idea less attractive?

Although I have not done a heap of reading on the topic.

 

[Affidavit]

You've missed the boat mate.

 

[Splash Brother]

You've missed the boat mate.

What makes you say that? Is it a generic line or do you have some insight into this around the US?

States vary in the US state to state much more dramatically than they do in Australia.

I'm sure certain states and cities still present good opprtunities for foreign investors and other states don't.

 

[JohnW]

What makes you say that? Is it a generic line or do you have some insight into this around the US?

States vary in the US state to state much more dramatically than they do in Australia.

I'm sure certain states and cities still present good opportunities for foreign investors and other states don't.

Whats your view on the AUD?

I haven't given it much thought, but I can't see Australia improving all that much, meaning I think the current position of the AUD to USD will remain the same or get worse for the Australian side.

That in it's self would squash any idea I had about buying in the US, unless of course you are far more sophisticated than the average Joe (me) and can get into hedging/un-hedging depending on your views? Not even sure how you would go about it.

 

[Lyyynnnchy]

Lyyynnnchy, I'm writing from tassie. Just want to ask you a few questions in relation to your US house purchases.

How are they going if you still have them?
Did you set up your own LLC and sought finance yourself or did you have a company assist you with it?

Have you heard of a company from Victoria (John Carney) called American Property Source, they assist Australians with the administrative side of things (LLC, finance, property management companies, as well as sourcing properties in Phoenix and Cleveland). What, if any are you thoughts on this company. Ever heard of them? I am thinking bout trying with them but still a little unsure.

Any info or assistance would be greatly appreciated.

Sorry its taken a while to reply, missed the notification

Still got one of the buildings, sold the other
Set up an LLC with the help of an investment group
Cash purchases, near on impossible to get finance although it is possible to refinance after 6 months of ownership

Haven't heard of American Property Source although the name John Carney rings a bell, not sure why though. Setting up an LLC is easy to do and you shouldn't be paying someone for the service.

I dont mind Phoenix. The initial outlay is on the expensive side though
Not a fan of Cleveland

Feel free to PM if you have any more questions

With the AUD around the 70c mark the initial outlay is a lot more than it was 2+ years ago when it was around parity. You have to add about 35% on to the advertised prices to get your AUD figure

 

[Jimmybob]

How's the remaining property going, Lyyynnnchy

 

[Lyyynnnchy]

How's the remaining property going, Lyyynnnchy

Still going well. Had a bit of a concern when the cyclone/hurricane hit however there was no issue. I'm living in London now so I'm certainly taking advantage of the tax break for trips to the US.

Having said that I'll be coming back to Australia in the next year or 2 so I'll probably sell it then, withdraw all the rent from my paypal and buy the forever home in Sydney.

I'll have to come up with some creative tax work to not get hammered by the ATO upon withdrawing all the rental income though