Forum Replies Created
I forgot to mention the shifting soil in Texas.
Had to have 7 drilled piers at front of the house only 12 months after buying due to shifting soil/temperature fluctuations.etc.
these cost me $4000 which again can screw with your plans of extra cashflow left over.………and no there is no insurance for foundation repair and Yes had a building inspection prior to settlement of property
Also with home owners insurance check that you are covered for items like water damage as this not
a standard item but an optional extra unlike Australian property which is standard.sorry to be so negative but again these are just my experiences.
Cheershi Mal,
From what i'm trying to forget i'll mention a few.1. Property management in the states has little to be desired.
most charge 10% plus fee for repairs.2.finance as Richard mentioned is harder to get now then ever before.
2 years ago you could go to 70 to 80% LVR at resonable int rates but now imagine would be much lower.3.exchange rates if you are paying a mortgage in between leases.
This can gobble up any so called pos cashflow if you are paying in AUS dollars.4.Property taxes/rates are high in Texas around the 3% mark from what I recall
5.Different tax laws from Australia
6.Communicating by email/phone in the middle of the night trying to sort out problems
7.Selling costs in Texas , realestate agents are 6% plus plenty of title charges from title company.
There are many more but these are just my experieces.
do a search on the forum and you will find more comments.
CheersHi Tess,
Also down the track a good broker can help structure your investment loans so you don't end up in a knot.
A single Bank will try and xcoll all your loans and can be a nightmare to undo.Not only that but with a broker you usually get to deal with the same person .
I email my broker at all times night and day……………Sorry Richard…….
and ALWAYS get a replyCheers
hi Rich,
Yes we are very happy with our EFM loan to date.
I think in the current market and years of possible flat growth will suit this type of loan.suits us in our situation with the wife off work on maternity leave and only I the bread winner.
We intend to refinance in a few years when the market turns around a bit.
No doubt you will see more and more enquiries as time marches on.
Cheershi Donna,
Maybe you can tell us all about your successful deals in the US.
a lot of people got into trouble buying over inflated property in New york State.Like to hear a bit more in your 2nd post.
cheersHi there,
We are in the process of doing same thing.
Our tiler has told us to grind the shine off the tops of tiles so better adhesion..you will need a Diamond grinding blade.
You can order them on Ebay.
It's a pretty messy job but quick to do.
Depends on your tile of course.
cheershi Elka,
Yes have personally used Ozforex over the last 2 years for various transfers both ways.
these were to and from the US.The most i payed is $15 AUD for fees.
I have used them over a dozen times with no hassles.
Very proffesional.
CheersWhy?
Were you intending to blow up all your US properties or something along the lines?
Have I misunderstood? LOL……Weapons of Mass Destruction "WMD"
They seen you coming!!!!
Hi Get Rich,
Why not just go through Richard and save yourself the headache yourself.
He maybe able to help you with how you structure the loan so ease for
future investing,if thats what you want to do.You should be looking to getting it right from day 1.
You would be lucky to get a mortgage choice rep with an investment property.
I know who i'd rather get to do my loans.Thanks
World Changer,
Fortunatly in San antonio they charge 6% commision for selling a house.
20% Oh my god. ,Your house must be in Buffalo.
Bardon you say burn $500, try burning $800 Aus paying your US mortgage while trying to sell your house whlle getting repairs above,
We have got a contract on the house now so we are hoping everything settles.
Sold for the same amount we paid 2 years ago.At the end of the day you have just got to laugh and move on.
thanks for reading my whingeLook forward to sleeping in on a Saturday.
My alchol bills will be cut in half.Good luck
Hi Bardon,World Changer,
Funny you should mention insurance,I didn't realise until I found out a few months ago the difference in premium for a 85 000
San antonio property.While tenanted is 515 year
or 2350 untenanted.Adding to the problem list is I have had to pay out approx $4000 for foundation repair,the insurance companies don't cover you
for this.The property has only moved in the last 6 months before due to the shifting dirt in San Antnio.
Something you can not see when you have a building inspection.Also I've had a pipe burst recently where I was not covered for water damage with insurance.
You think it would be mandatory but they say an optional extra.
I can't blame anyone but myself for not checking policy.
This cost us another $4000Also something we overlooked for inspection was the fence which we had to replace.
This cost us around the $2500 mark.The tenants are very fussy over there, it seems they look for repairs just for the sake of it
I'm only just skimmimg the surface.
for me it isn't worth it either unless you are buying 5 plus properties.
for repairs I always get them to send me photos and reciepts for everything.It will take you time to confidently trust your contacts.
It is a complete different system over there from taxation to insurance to financeMake sure you have a plan in place and be prepared to lose your funds you put into your investment.
How do you intend to purchase .Are you wanting finance in the US or are you prepared to fund from a loc from NZ?
with the subprime issue going on you probaly won't get more than 70% ,depends on zip code of course.Good luck,you will need it.
Hi guy's,
Yes we have had a EFM since early february in which Richard set up for us.
In our situation the wife is off work on maternity leave and over the next few years will be only on my income.
As people have said it's inportant to have some sort of goal with your exit strategy.As sonn as the wife goes back to work on full time wages we will refinance or pull equity out of another property
and pay out the EFM.It will work well for us in the short term.
doesnt take my fancy over a longer period of time but everyone's situation is different I guess.
CheersBoth Terry and Elka you are exactly right.
checked with Julia of Ban Tacs accountants.
Thanks for the repliesTry ban Tacs,julia hartman i think i recall.
Havent used them myself but they have many international investors as clients.
Have a look at their website.
http://www.bantacs.com.auwhy restrict yourself to just darwin in finding a Broker.
communication via phone and email is all you need.why not give a broker like QLD's007 ,Richard Taylor an email and see if he can help you out or try a few others here on the forum.
cheersring up Rams and ask them how much to pay out when refinancing,
It will cost you I think around 2% for early payout.Can put a spanner in the works for future investing if you want to go to another financier.
Hi
Seems alot of people shoot off at the mouth before thinking about this product.
you have got to make it work in your favour..
for instance we are using it while my wife is having kid/kids and then refinance after 3 years
Yes agree not for everyone and doesn't fit our situation long term either but will work in a flat market also.
Hi Yossarian,
Yes we will use this product while we have kids and then in say 3 to 4 years refinance to 95% paying out EFM etc.
My wfe is the one with the largish income and while my income is not to bad figure we will be comfortable and have a good lifestyle with this loan
I think if you can use this to your advantage then why not give it a go.
Personally it doesent fit our plan to have long term as the figures speak for themselves.Obviously not a product for everyone.Yes we have other properties but didn’t want to start pulling equity out thereby increasing repayments on a loan.
Works out for us in our situation.
CheersGive Richard a ring I’m sure he will be able to help out
As far as experience goes and honesty you simply can’t go past him with all kinds of loans and structure for future borrowing.Cheers
