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Viewing 10 posts - 1 through 10 (of 10 total)
  • Profile photo of DraytoneDraytone
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    @draytone
    Join Date: 2014
    Post Count: 12
    March 19, 2015 - 7:49 am

    I source my own tenants however I have an agent in the middle to collect the rent, pay the utilities that need paying and be that first port of call for any emergencies. The agent is fine with this arrangement and it saves me the “listing fee” which is typically a weeks rent I believe.

    Also the fact that I live overseas, makes it difficult to manage myself. Although I do know of people who do it, I don’t want to be the guy that needs to harass people should there be any concerns, and needing to keep track of rent cycles etc. I’ll happily pay my 5.5% to the agent to do that for me. If I lived closer I would consider managing it myself, but when I consider the time I’d need to spend compared to what I would save, to me its not really worth it.

    -Rob

    Profile photo of DraytoneDraytone
    Participant
    @draytone
    Join Date: 2014
    Post Count: 12
    March 18, 2015 - 5:23 am

    Hi Mark,
    Thanks for taking the time to respond. As someone who is very green with all this, I’d love to pick your brain a little regarding your response.

    What would you consider a “high risk high return” scenario? Example, the idea of me using 20% from the equity in my Sydney property for a deposit on a perhaps “not as great capital growth, but better returns”? Would this be too risky in your opinion? Ideally I’d like to sell some spare organs I don’t need to scratch together a deposit for my second place and not touch my equity in Sydney, as otherwise I might as well just take out a loan here in the USA for the deposit, which kinda defeats the purpose in my opinion, and not something I’d want to do.

    Thanks again for taking the time!

    -Rob

    Profile photo of DraytoneDraytone
    Participant
    @draytone
    Join Date: 2014
    Post Count: 12
    March 18, 2015 - 3:37 am

    I’m an Aussie now living in the USA, and have come up against these things. Here’s my two cents –

    CitiBank appears to have good international banking, but you need to be in each respective country to setup the account. IE, I setup my CitiBank account here in the USA, then wanted to set one up in Australia and kept hitting brick walls, told I need to go into a branch. :( Aside from that though, the rates the banks offer are not that great if exchanging currency. Good thing about Citi is that there is no fee (some banks can charge $30+ for a transfer), but the rates still aren’t great. I do want to set this up so I can have some easy transfer options should I need to access funds fast.

    For about 6 months I was sending about $4000 a month to a USA account from Australia using OzForex. I never had a single problem and it cleared so fast, normally by the second business day after the transfer. The rates are probably the best you will find, but one thing to note that there is a $15 fee if the transfer is less than $10k. Also, the bank (credit union) on this end was charging a $30 receiving fee (I know right..any opportunity they get)…..

    In a nutshell, I’d forget about transferring large sums through a bank, but you can do the sums and see that one for yourself.

    Hope that helps!

    -Rob

    Profile photo of DraytoneDraytone
    Participant
    @draytone
    Join Date: 2014
    Post Count: 12
    March 17, 2015 - 9:45 am

    Hey Benny,
    That definitely is another angle worth visiting. I like the idea of starting small fries here in the USA and building some capital. Also, things are structured a little different and mortgage offset is not really a thing here from what I have seen (I could be wrong). In reality, I could free up USD $20k plus some extra to purchase a USD $100k property here that could fetch $1000 a month in rent return. (That’s just random numbers at this stage). That’d get me in without worry about LMI and I’d still be positive cash flow due to low interest rates and my deposit, so I could compound the rent collected as additional contributions to the mortgage balance.

    Thanks for the response.

    -Rob

    Profile photo of DraytoneDraytone
    Participant
    @draytone
    Join Date: 2014
    Post Count: 12
    February 4, 2014 - 9:35 pm

    Hi all,

     I've managed to get some things in place and switch my loan on this property over to interest only, and very comfortable with the fact that after the I/O payments, the associated holding costs and insurances etc, I'll still be $$$+++.

     A question that I am curious about how it is approached by others, is that whilever it is cashflow positive, would most people continue to hold, unless they come up against a situation where they forsee an area with better capital growth or better cash on cash returns? Obviously as people have mentioned I have 6 years to decide if it stays or goes before the consideration of CGT. I guess my question is, for others here, what are the factors that motivate someone to sell? Better capital growth elsewere? Better cash on cash returns somewhere else? The ability to cash out and diversify?

    Thanks! This forum is amazing with such an abundance of knowledge and generosity.

    -Rob

    Profile photo of DraytoneDraytone
    Participant
    @draytone
    Join Date: 2014
    Post Count: 12
    February 2, 2014 - 9:07 pm

    Hi Adrian,

     I am interested to know some of your references that you used for research. I am relocating to the USA later this year and see it as an opportunity to be able to research as much as possible before I get there with the potential of looking at investing when I am there.

    -Rob

    Profile photo of DraytoneDraytone
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    @draytone
    Join Date: 2014
    Post Count: 12
    January 30, 2014 - 9:54 pm

    Hi Waydo!

    We are in Kings Park, just between Kings Langley and Quakers Hill :)…

    Profile photo of DraytoneDraytone
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    @draytone
    Join Date: 2014
    Post Count: 12
    January 30, 2014 - 2:07 am

    Thank you Jamie! :)

    Profile photo of DraytoneDraytone
    Participant
    @draytone
    Join Date: 2014
    Post Count: 12
    January 29, 2014 - 11:43 pm

    Hi Benny,

     This may be an ignorant question and better directed to an accountant, but I was under the impression that even if I do rent the property out for more than 6 years, pushing me out of the CGT exemption category, that a CGT event won't happen until if and when I sell the property? 

    Regards, -Rob

    Profile photo of DraytoneDraytone
    Participant
    @draytone
    Join Date: 2014
    Post Count: 12
    January 29, 2014 - 10:27 pm

    Hi guys… Thanks for your feedback so far.

    We are specifically enlisting a local real estate agent in the area and having them handle everything as per a "traditional arrangement", with the only difference that we are finding the tenant and sending them their way. We are going to have our tenant deal with the agent in every such way they would if the landlord was an unknown party. We believe this would definitely help keep things in check on a few different levels ;)

    -Rob

Viewing 10 posts - 1 through 10 (of 10 total)