Hi Guys,
Ive been seeing a lot of propertry in the USA (many in New York State) that have really high returns (20-40%). The majority of these properties are blocks of units, however the average price for these blocks is $150k (au), which i thought was extremely low.
Can anyone give me advise as to why the prices are so low, and also whether there would be any large expenses that i dont know about with US property, that would eat away the positive cashflow.
Thanks
KALTSHi KALTS,
How much do you actually know about the market in WNY. Have you looked over the previous posts that people have been writing about on this forum. Without me having to say anything I think its clear by the posts that many people are unhappy with there investments in WNY . To be honest, I am speaking to more and more people and many are trying to sell there properties and get out of that market.
I am not wanting to scare you but rather make you aware of the reality of investing in WNY. There are many factors that can eat into your profits and from what I am hearing both in the forums and people contacting me, they are all experiencing similar problems.
I want to make it clear that investing in Buffalo can be a profitable experience and there are many “locals” who make an extrodinary amount of money due to the price of the homes and the returns you can achieve.
If you really want to make real money in that market, then spend the time getting to know the market and the areas. If you are there at the moment you will know what I mean by the fact that you can have a good and bad neighbourhood within a block from each other.
Try to establish a relationship with some good people and most importantly find someone reliable to manage your properties.
Although the returns look good on paper, be aware of possible high vacany. Geberally the properties in WNY are very old and therefore maintenance can also be an issue.Taxes: Taxes are also quite high compared to other states in the United States. As for low prices dont be mislead as this is just the WNY market. It is a cashflow startegy so make sure you are prepared for the long term. You wont get your money back in a hurry as appreciation in this market is quite slow compared to other U.S cities.
Finance: Finance is generally a challenge in WNY also for a foreign national and I dont even know how you would go obtaining finance on a block of units. To be honest I have never purchased units there so I guess I am unqualified to say what you can or cant do but I am aware that financing in this region on commercial property may be difficult to obtain. If you can get it, it wont be cheap. Its a costly excerice obtaining finance there as well.
Before jumping into anything, maybe some other forum members (i know there are plenty) who have purchased in this region could give you there advice as well.
Again you can do well in this but try and build a relationship with a local if you can. I would’nt buy anything that dosnt show at least a 30% return on paper either.
If these units you are looking at are in Buffalo/Niagra region, I would be happy to put you in contact with my friend and business partner who lives in Buffalo to maybe just give you his thoughts “from a local point of view” just as another opinion.
I also know a very good realtor who you could call to get her opinion on it as well and maybe just help you in order to make a decision.
Anyway, good luck with it all and all the very best.
Regards
Providing Turnkey Real Estate Investments In The USA.
We also provide Owner Finance in a new emerging market.E-mail:[email protected]
web: http://www.gr8realestateinvestments.comON SKYPE AT: chaddylansimons
Thanks csimons,
I obviously need to look into the market a little more, you’ve been a great help and ill have to check out the buffalo market.
Im just starting to invest in Australia, but the high returns i was seeing on paper in the USA just looked too good not to investigate further.
Thanks again
KALTSKALTS,
Always happy to help and yes, the returns are too good to ignore. You are doing what a lot more people should be doing. And that is jumping on a plane and doing your own investigations so you can decide for yourself whether it is for you or not.
It’s a very small investment for anyone considering investing abroad.
So good luck with you research. Another area you should consider visiting if time permits is Texas. Totally different market to Buffalo and it has strong capital growth as well.
Just something else to consider.
Again good luck and don’t hesitate to drop me a line if you need a hand.
Regards
Chad
Providing Turnkey Real Estate Investments In The USA.
We also provide Owner Finance in a new emerging market.E-mail:[email protected]
web: http://www.gr8realestateinvestments.comON SKYPE AT: chaddylansimons
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