as i said, i wait to be corrected but my understanding is that if your income is less than $75,000 (that is the new threshold i think, it was $50,000) you can register for gst, buy the property, deregister and claim it back. that was the advice that i was given in 2002 when i bought an industrial but i didn't deregister as the rent was approaching the (then) $50,000 threshold. so i haven't proven it which is why i asked for rebuttal. even i think it sounds too good to be true…..

i may be wrong but as i understand it, you would have to pay gst to purchase the property. if your income from rentals is less than $75,000 you don't have to be registered/pay gst . however, i believe that you can still register, claim back the gst that is payable on purchase and then deregister after purchase.

can someone correct me if i am wrong please?

hi
us property purchase has been my intention for some time as, on paper, they seem to pay for themselves, allowing further accumulation of property.

i have been looking at southern texas which has had steady population growth and is still quite cheap to buy into. i have been looking at apartment complexes. i dismissed northern america after lots of research as all properties need a new roof every ten years to cope with the heavy snowfalls. factor that into a maintenance budget and it would really change your bottom line.

however, i have just about decided not to pursue it further for several reasons;

-our dollar has just dropped to about 82c from 98c us. that is a significant drop if you are looking at moving $100,000 or more.

-whilst employment in the area looks good indicating reasonable tenancy rates, (from a distance), the states have lots of varied taxes, which when added to the base line, eat into the returns.

-the major factor for me however, is the horror stories that i have read about american property management. dealing with issues like that from a distance would need very sound cashflow here to be able to cover the debts as well as plenty of time to be able to keep chasing things up. it is not a set and forget. so much so, that the only way i could see it working for me was to move over there for months at a time.

-add to that that the area has suffered four major hurricanes in the last month and it has paled for me as an investment strategy.

-there are also issues with australian taxation, american banking structures and foreign exchange rates, as well as silly things that would cause huge frustration like not all american banks (you need to have an account in the states) allow online funds transfer necessitating a cheque account. i haven't verified this one but i read it somewhere.

in order to maintain/grow a credit rating there, all accounts need to be paid on time everytime. if they need to be sent here first (through an unreliable agent) and then be posted back, your bookkeeping would need to be pretty smick all the time.

while i think it is probably possible to find good investments there, there are some good investments appearing here now that the temperature has dropped on the australian scene. given the amount of stress and education needed, together with very sound cash flow and bookkeeping, i have decided to stay here for now.

in fact, i made an offer on a place here yesterday.
all the best
grace

original sinner, that's just beautiful. i'll flick it to barry j (grew up in kingaroy, 74 yr old dad lost several fingers this year in a farm accident), who is living in thailand… think he'll laugh as much as i did.

you said you can get 2 for $260,000? is that a misprint? prices for a unit are pretty high in that area.

are there other agents in the area that you can approach with questions about tenant availability?
 has your agent started advertising the property yet (even if it is just listed at his office for walk-in apps), and if not when does he expect to? if i had an agent with a residential that was empty for 3 months, i'd be seriously concerned to the point of changing agents. then you keep on top of it. call all the time, drive them mad if you have to but get your place remembered and then let.

of course there is a balance because you don't want dodgy tenants but if you are undergoing financial difficulties because of a slack agent, you need to be as proactive as possible.

the other alternative is to go there the weekend the tenants move out. phone thru adds in the local paper for that weekend and show people thru yourself. you can still get your agent to check them thru before a decision is made but at least you would know if there really had been no response.

i live in a ballarat (90,000) and i have a friend who has been looking for a rental. i have been shocked to learn that agents regularly make appointments for 'next week' or whenever it suits them, rather than showing the property quickly. my friend is a professional and able to move immediately. if that happens in a place as big as balla, country towns could be just as slack.

without sounding trite, stressing doesn't help. consistent checking on agents and ear to the ground does.

where in the states have you bought? i am much the same position as you are and i am looking at going to the states on and off  long term.

hi
i would like to an answer to this question also. i have heard that if you go on one of those international property hunting trips (such as texas) that they can be classed as having an educational purpose, meaning that the costs of the trip can be claimed. is this a furphy?

also, i have never heard of travel costs to see a property before it is purchased being classed as a capital cost. is this correct? does that mean that you can claim depreciation for those costs when you have purchased or does it only become a deduction when the property is sold?