Hi everyone,
I have been reading up as much as possible on potentially buying into the US property market and i just wanted to ask a few questions of some of the experienced people here to see if i can get some insight into certain markets and some other issues i need some clarification on. I have already found a great wealth of info from this site already from a number of really good posters
Alright so i'll ask away
1) If you set up a LLC Structure can it be used for multiple properties or would you be able to have one LLC that holds a number of US properties?
2) Im looking at either Atlanta, KC or Charlotte for my first investment property and would appreciate some insight from some of the people in the know about the cities themselves and which areas are the least risky when it comes to crime, vacancy and poverty?. Basically any help with weeding out the ghetto areas from the rest. Which Counties are best etc for crime, tax, poverty etc
3) I am looking at buying something for the long term with at least a 10 year view to buy and hold and collect the income. Any capital growth is great obviously but i want to buy somewhere with a good chance of having no issues finding a tenant. Of course near schools, shops and amenities is a big part but i would love some help from anyone who knows good areas that are sought after.
4) How is the eventual foreign income treated here in Oz. Is it simply added to your assessable income on your tax return and any help with what is deductible etc would be really helpful.
5) Any other tips that you learnt from your own experience
Thanks Stu.
stu82 wrote:Hi everyone,I have been reading up as much as possible on potentially buying into the US property market and i just wanted to ask a few questions of some of the experienced people here to see if i can get some insight into certain markets and some other issues i need some clarification on. I have already found a great wealth of info from this site already from a number of really good posters
Alright so i'll ask away
1) If you set up a LLC Structure can it be used for multiple properties or would you be able to have one LLC that holds a number of US properties?Yes an LLC can hold multiple properties
2) Im looking at either Atlanta, KC or Charlotte for my first investment property and would appreciate some insight from some of the people in the know about the cities themselves and which areas are the least risky when it comes to crime, vacancy and poverty?. Basically any help with weeding out the ghetto areas from the rest. Which Counties are best etc for crime, tax, poverty etc Each area will have good and bad areas, just make sure to investigate the exact area each house is located in. This forum is a good place to ask around.
3) I am looking at buying something for the long term with at least a 10 year view to buy and hold and collect the income. Any capital growth is great obviously but i want to buy somewhere with a good chance of having no issues finding a tenant. Of course near schools, shops and amenities is a big part but i would love some help from anyone who knows good areas that are sought after. Glad you said 10 years but what are you plans after 10 years.
4) How is the eventual foreign income treated here in Oz. Is it simply added to your assessable income on your tax return and any help with what is deductible etc would be really helpful. Sorry best for some Aussie investors to answer that one..
5) Any other tips that you learnt from your own experience .Take you time , dont rush in , have some realistic goals. Make plans to come to the USA. Find some local people around you ,who are currently investing in the USA( ask them questions ). Check out a few markets all the above sounded good. . There is alot of free information out on the internet .Take advantage of the free information ( this forum is a great starting place.)
Sincerely
AlexThanks Stu.
Hi Stu,
Welcome aboard. Yes as Alex states….the LLC can own multiple properties. If however you purchase in another state other then where you originally set up the LLC…you will need to register to do business in the other state as well. You will need to do lots of research as suburbs or even the same street can go from "good to hood" real quick. Nothing better then jumping on a plane to back up your research and see it first hand. As far as the markets you mentioned….read through the forums and you will see the people experienced in the markets you mentioned.
An LLC is a flow through entity so once all income and expenses are taken into account…the bottom line comes through to you. You should get specific advice about your situation Stu. Any tax you do pay in the US is taken into account and treated as a foreign tax credit on your Aussie returns. I can recommend James Simango from USTaxCentral. (www.ustaxcentral.com)
Finally…..don't pay any companies any joining fee's for property lists or membership fee'sWhat's the advantage of setting up an LLC? Can I not purchase mutiple houses as an individual?
great thank you guys,
Alex, after 10 years if all has gone well i'll have a few properties and wont be looking to sell. Why would i if the yield is sustainable even if there is modest capital growth. I expect i would sell eventually but it wont be a short term thing. If i can see that the income is flowing through and if the dollar is still high i think i might end up being inclined to buy a few.
One last one i forgot to ask – can anyone explain to me in layman's terms what a section 8 tenant is and what its all about ?
kingsr wrote:What's the advantage of setting up an LLC? Can I not purchase mutiple houses as an individual?protection ….better to have the LLC own the properties then you personal own them..
Alex
There are good reasons to having an LLC trust structure if you own a few properties, but remember that the protection of an LLC is realistically no better than living overseas. Someone has to spend a lot of money to serve papers on you if they want to sue you. LLC’s bring a lot of taxation complexity with them – ask yourself if it is _really_ necessary.
Hi Stu,
As an Australian investor buying property abroad you're also entitled to claim depreciation on the building and fixtures & fittings in conjunction with current ATO legislation.
A post added previously:
https://www.propertyinvesting.com/forums/property-investing/overseas-deals/4343319
I hope this helps,
Im looking at either Atlanta, KC or Charlotte for my first investment property and would appreciate some insight from some of the people in the know about the cities themselves and which areas are the least risky when it comes to crime, vacancy and poverty?. Basically any help with weeding out the ghetto areas from the rest. Which Counties are best etc for crime, tax, poverty etc
Depends on what type of investment it is your looking for in Kansas City? Then i could tell you what is the best area for that type of investment. There are lots of nice areas that border the ghetto so the zip code thing doesn't work that well in Jackson county. I have a house at 4445 Gilham road, Kansas City, MO., across the park are half million dollar homes and two blocks over to the east is the edge of the ghetto. I got the above mentioned house for 33,000 in 2009 and put about the same into it. It rents for 1,200 a month and when the market comes back i am sure i will be able to get 120,000 for it no problem. This type of house in this area is about location and personality. I would rather purchase this type of older house with original oak trim, hardwood floors, horse hair brush texture and stone foundations. The frames of these houses are so old the wood is almost like rock itself. Try to saw zall ones of these 2X4's and u can see the difference how long it will take you compared to a new pine 2X4. Biggest reason i don't invest really anywhere else is i can't make the money i can in my own city.
If your more specific i can be more helpful for Kansas City
kylermrice wrote:
Depends on what type of investment it is your looking for in Kansas City? Then i could tell you what is the best area for that type of investment. There are lots of nice areas that border the ghetto so the zip code thing doesn't work that well in Jackson county. I have a house at 4445 Gilham road, Kansas City, MO., across the park are half million dollar homes and two blocks over to the east is the edge of the ghetto. I got the above mentioned house for 33,000 in 2009 and put about the same into it. It rents for 1,200 a month and when the market comes back i am sure i will be able to get 120,000 for it no problem. This type of house in this area is about location and personality. I would rather purchase this type of older house with original oak trim, hardwood floors, horse hair brush texture and stone foundations. The frames of these houses are so old the wood is almost like rock itself. Try to saw zall ones of these 2X4's and u can see the difference how long it will take you compared to a new pine 2X4. Biggest reason i don't invest really anywhere else is i can't make the money i can in my own city.If your more specific i can be more helpful for Kansas City
Thanks for responding. I dont really have a specific sort of property in mind but it needs to be something that will last the test of time and people need to want to live in the area. KC seems to be discounted by 10k or so from the homes going in places like Atlanta so its definetely cheap i just want to make sure im not buying cheap and receiving garbage.
In terms of requirements im looking for something already ready to lease or tenanted in the 30k-50k range with a sustainable yield around the 15% mark. Ideally a home low on maintenance – any suburbs u can recommend to be a good neighborhood?
U won't see the appreciation in the burbs like you would if u bought in the city. As far as Burbs, Independence, Raytown, Blue Springs and North Kansas city (which is another part of the city different from the main city) I know some good turn key programs in town for the price range you are looking. PM and i can give you the web links
my favorite zips are 64110. 64111, 64112 for city stuff that people love for location to Downtown, the Plaza and the art district
stu82 wrote:great thank you guys,One last one i forgot to ask – can anyone explain to me in layman's terms what a section 8 tenant is and what its all about ?
This link will help you understand the Section 8 Housing http://en.wikipedia.org/wiki/Section_8_%28housing%29
Basically rental assistance for low income families
AUSTRALIAN PROPERTY INVESTOR IN USA
I have an Australian family trust, that is the managing entity of a LLC in Florida. How do I get an EIN? The SS-4 form requires an ITIN, but the W-7 form to get an ITIN requires an EIN.
cam0479 wrote:AUSTRALIAN PROPERTY INVESTOR IN USA
I have an Australian family trust, that is the managing entity of a LLC in Florida. How do I get an EIN? The SS-4 form requires an ITIN, but the W-7 form to get an ITIN requires an EIN.
You don't need a ITIN to get an EIN for the LLC. The IRS will allow it without the responsible party having a SSN or ITIN
You must be logged in to reply to this topic. If you don't have an account, you can register here.
