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Oh my goodness. That article is rubbish. I agree that it's a waste of time. I just posted my oppinions on the site.
andrewe303 wrote:Charles 1 wrote:Interesting article in Property Update yesterday on investing in the USA. http://propertyupdate.com.au/articles/is-the-investment-grass-really-greener-in-the-us.html Read it and take out of it what you will. There are always different opinions on how and where to investwell the first thing i took out of this is that the guy has no idea what he is talking about and should not be writing an article without checking his facts…….."That’s right – there are some places in America where you can’t give a home away at any price! If these properties are such a good deal, how come the locals aren't buying them? Right now, home loan interests rates in the USA are less than 1% – often 0.5%. That means a local could borrow $40,000 and pay $400 a year in interest! If these properties were so good, why wouldn’t they buy them instead of paying $200 a week in rent or why wouldn’t the locals buy them as an investment?" how can these guys be so dumb? they dont even understand the interest rate situation in the USA…..so how much research have they done? why would you read any more from this guy?
Buying property in the USA can be tricky as we can tell from this blog. However, I have spent years putting together a complete service offering allowing Aussies to purchase WHOLESALE investment properties in low risk cities and neighborhoods. Unless you are willing to spend a lot of time, energy and money to put all the peices together that I have over the years, I suggest you engage a professional company to assist you.
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Greg
There has been a bit of tax discussion with the LLCs so I thought I'd run one by anyone who may know the answer. Here it goes…
What I’m trying to ascertain is how the IRS in the US will tax a Delaware LLC which will be owned by a Self Managed Superannuation Fund in Australia? I don’t know if you have familiarity with Self Managed Super Funds (SMSF) in Australia but they essentially are Trusts that act similarly to a 401K in the USA. Funds are deposited into the Trusts at a 15% tax rate (some discounts and deductions may apply) and when in pension mode and it’s paying out, there is no tax on those funds. So now we get back to the question, if the LLC is taxed based on the owner of the LLCs tax rate (pass through), what rate would the IRS tax it at if the SMSF is in pension phase and is not taxable? The question also applies to capital gains.Our concentration has been in Dallas and the one new opportunity I mentioned earlier in San Antonio. Two different opportunities acheving two different outcomes. However, most single family homes in Dallas (townhouse or stand alone) will produce both income of about 13% and growth of about 6% (so we believe). To purchase this type of single family home as a rental you will be spending between US$100k to US$150k depending on square footage. The greater the Sqf the greater growth potential and you'll pay up for it. If you wanted 1/18 of a bigger leveraged deal like the 132 unit complex, you are looking at US$100k.
We can get financing at 50% LVR for foreign aliens who want to purchase in Dallas, which can make a difference.
Well said Dale.
Hi Lucigoosey:
It is interesting that you have identified those markets. We tend to invest in the ones you identified and avoid the markets you found to be poor. However, we do more due diligence as we factor in local infastructue build and investment, property costs, taxes, school systems etc. To this end we are in Cleveland OH, Kansas City MO, Memphis TN, Birmingham AL & Dallas TX. We are opening up Pittsburgh PA and Atlanta come February. You will see my post earlier showing the level of service we provide as we do more than just buy property for Aussie investors. We structure and set up each customer so they are capable of executing their purchases. We also personally visit each property before you pull the trigger.
We are not in San Francisco because affordability makes it difficult. This isn't to say that we don't like SF, just that it's an expensive proposition. I don't see why you didn't get positive data for Atlanta as our numbers are proving that this is a good market to penetrate.
Let me know if we can be of further assistance. Greg
[email protected] or 1300 854 431
Hi Sunny Girl: I don't know i it's too late but I was in the US buying properties for clients when this post was established.
My company Tandem Uehling provides turnkey services making it easy for you to purchase investment properties in the US. These services consists of:
1. financing in Australia for funds to go to the US
2. opening a forex account to transfer funds
3. opening up your US bank account and everything required for that
4. set up the Limited Liability Company (LLC) in a non tax state
5. do all the due dilligence of where, when what and how to buy
6. personally view each investment property on your behalf before you commit
7. manage the local property managers when back in Oz
8. ongoing consultationFeel free to visit http://www.TandemUehling.com.au for more info or just give me a call on 1300 854 431.
cheers,
Greg
