Forum Replies Created
C2,
No real change in my opinion on the US. I still think its a yield play in most parts and real growth is some way off. I still also think you need to deal with reputable people in the industry there or you run the risk of being burnt. I personally still don't want to invest there because that market does not fit my current strategy. Same same with Japan. As with all of us our funds are limited and for a number of reasons i have committed all i have elsewhere.
My real point in my post on this topic was that there are companies/services out there that can help those who have troubles finding their own finance and or have concerns about property managers in the US. If people really want to invest there I have no doubt there are some good buys in such a vast market but as stated in previous posts, personally it doesn't fit into my plans. Sorry if I didn't make that clear.
Cheers
Adrian
Hong KongI have recently been buying OS properties with a company based in Hong Kong that has an Australian client base. They have been seeking out opportunities in the US that represent good solid opportunities which are very well researched. The name of the company is IP Global. Once they find a property that meets all of the investment criteria they set themselves they produce an extensive free due diligence report on the project. They also negotiate finance for their clients and find all of the relevant professionals you need to do the deal such as solicitors etc. They also have a property management service for all of the properties their clients have anywhere in the world.
In the US they recently found two above average projects in LA that they believe will be strong investments over a medium term. They have arranged the finance for clients with HSBC bank or Wells Fargo and its possible to get 70% LVR with the banks already accepting the values as given. It apparently took them considerable time and effort to secure the finance in this current climate. The finance is only open to non US citizens.
If anyone wants to know more just send me an email and i can forward you their reports. There are good deals out there with the hard work done!
Cheers
Adrian
Hong KongSome interesting points made here. As an Aussie living overseas I thought I should say that there are also other places in world you can invest that are not in the same stage of the property cycle as Australia. If you find the right deal they can be very secure and straight forward. They do not have to be complicated. I guess it depends on what you are looking for.
For those wanting specific examples here is one. This year I purchased an apartment that is part of an existing 5* hotel/resort complex in Malaysia. It is prime beachfront. The purchase price was about $300K at the time. Deposit was 30%. 20 year P&I loan at 4.8% variable with a Malaysian bank (CIMB). The apartment is leased back to the hotel on a 5 year lease with a further 5 year option. There are no outgoings. The net return is 7.25% for the first 5 years. At today's rates that works out to be about $1000 AUD CF+ a month after P & I repayments. In fact the CF is so good on this you could even use existing equity for a deposit and still have a +CF (you will have to do your own sums of course). Malaysia also has no capital gains tax.
I am not saying this is for everyone but it fits my plan and I share it to show that there are CF+ deals out there off the shelf that require very little other than good due diligence and some thinking outside the square. If anyone wants to know more drop me a email.
Cheers
Adrian
Hong KongI have invested in a few countries now but am avoiding the US market for a number of reasons. After the instability there, which still has a long way to play out and some prices have not seen their bottom, some commentators are saying that it will be many years before you start to see some real gains and confidence back in that market. If you are just chasing yields then its really about your rental returns and perhaps your growth is not so important to you.
Now more than ever would be a time to be extra careful in not being taken advantage of as an overseas buyer. You would really need to have confidence in what was happening with the area you are looking at and who are the reputable people there to deal with or you may become victim to some type of scam.
Unless you really have a burning reason to invest in the US I think there are plenty of other places to look where there is stability etc. As an example I just purchased a beach front apartment in Malaysia for about $300,000 AUD with a 70% lend at 4.75% interest with a guaranteed net rental return of 7.25% for the next 5 years with a further 5 year option after that. This makes the deal cash flow positive to the tune of almost $900 AUD a month guaranteed for 5 years without any hassles for me.
If anyone can find me a deal like that in the US or anywhere else I would love to know about it.
If you want to tap into a network of Australian professionals in the US who may be able to help you find some direction, try the Advance Global Australian Network who link up Aussie professionals around the world with an online networking service.
Cheers
Adrian
(Hong Kong)Hi Nada,
if you are really looking for good opportunities in emerging markets there are plenty of other Asian countries you can invest in that are far more advanced and more secure than the Philippines. I have been looking there recently at completed projects and the build quality is not particularly high from what i could see. Granted the prices are cheap but the yields are comparative and they are not expecting high growth. Corruption is also rife there so you need to really understand what you are doing and who you are doing it with.
If you are interested in other more solid opportunities I can highly recommend a company called IP Global in Hong Kong (see my posts on the forum titled "Ask me how I bought properties in 5 countries". If you want to know more about anything I have said there just drop me an email.
This year I have purchased properties in Bangkok, Kulala Lumpur, Sabah (Malaysia) and Panama so I have had plenty of experience with checking out the deals etc.
Good luck
Adrian
(Hong Kong)Some developing countries dont have an established mortgage market as we would know it. As an example Vietnam does not generally offer mortgages for property. Brazil is another country where the number of general mortgages is very very low compared to somewhere like Australia. However you can get them in Brazil if you deal with the right company. If you are purchasing through a developer in something like an off the plan purchase they are generally best placed to refer to a lender (if there is one) who is familiar with their project.
D,
There are many different property markets within China just as there are in Australia and some may be more promising than others. I live in Hong Kong and the market here is in slight decline with investors waiting for the full impact of the sub-prime to carry through. In Macau there are many projects aimed at foreigners but reports in the press say sales are slow. No doubt someone can give you more info about Shanghai and Beijing. The developers and middle men seem to be pretty greedy in some reports and I feel it would be tough to get straight answers in some of your research. They create artificial demand in some cases. I think apart from finding a deal where the $$$ really stack up your issues will be finance, title (some areas don't allow foreigners to purchase freehold) and possibly language if you are outside the markets that really cater for foreign investment.
There are other markets in Asia now that are also experiencing good growth and lots of the money being made in China is going into these markets also. Some of these markets are safer and easier to invest in property.
Hi Johnathon,
i use a company called IP Global Ltd who are based in Hong Kong but have a London Office. I have purchased 3 properties in other countries (Malaysia, Thailand & Panama) with these guys now. I have looked at a number of other companies offering similar products. IP Global are really head and shoulders above the rest and take all the hard work out of it and also give you deals that the other cannot match. I don't recommend too many companies personally but these guys are great!
Contact me if you want any more info or the guy I deal with is Rob Pearce and I am happy to give you his details.
Cheers
Adrian
(Hong Kong)Hi,
there are a few countries you can buy freehold title in that I know of.
I have freehold title properties in Malaysia and in Thailand. Both of these countries have a freehold system that relates specifically to condominium (apartment) purchases whereas other sorts of property are leasehold.
I use a company called IP Global to purchase these and they specialise in properties with freehold title and as an Australian you can buy these. The guy to contact there is Rob Pearce and he can give you more information.
If you want to discuss or want more information please contact me and am happy to give you details.
Cheers
Adrian
(Hong Kong)
