It might have been one of those once in a lifetime deals – mining boom and high dollar – GFC and cheap US property. I’m sure there are deals but you might have to have lower expectations?

I must have been very lucky as we went through a buying group but survived the experience. I met the property manager at a dinner as they had come out to Australia for a working holiday and the properties have been managed well for the last few years and I wish I had more. I agree the property management is the key to making investing in the US…[Read more]

Hi Ziv,

That’s a good question.  I’m not going to provide tax advice, but for my older homes, the quantity surveyor (QS) has depreciated most of the renovations done prior to purchase (they have an effective life) of around five years depending on whether you choose prime cost or diminishing value methodology. Then there is a small amount of…[Read more]

The RBA has an inflation target of 2-3 % not zero. Enough said.

Thanks Terryw that's exactly what I was looking for. Cheers David

I mean the interest is tax deductable as the purpose was to generate income.

I have a cousin in Spain who is a real estate agent so when I visited them in 2010 I asked if there was any property worth investing in. I was told not worth the risk. You’d need to be very careful about risk to your rental income and do all the due diligence.

As a relatively passive investor, I wouldn’t put more than 10% of my portfolio in the US. Id look for a couple more US houses then I could check out a few of Zivs Japanese apartments at greater than 10% yield if I had faith in the yen.

It would be a nice to have foreign currency earnings if the A$ falls.

Jay has a point about directing passive…[Read more]

Ziv, how do you estimate the risk of vacancies? Are there statistics on vacancy rates?

Thanks Ziv. This may be a stupid question but what is MB on the floorplans?

Cheers David

Good one!   

Ziv

How do you know your capital will be preserved with a falling population and tenant base?

Cheers

David

I’d use the same due diligence processes as expressed by others recently for US market.

I have cousins in Spain who are actually real estate agents and they told me to stay well clear of Spain. I’m not familiar with Portugul but would be very cautious about body corporate tenure and holiday letting comes with risks in any country.

You might…[Read more]

Good posts thanks Alex and Freckle.

Shows the importance of Hispanics immigration with positive birth rate contributing to overall population growth and housing demand in the US along with interstate migration from Northern industrial states to the South and West.

That explains why US population is growing where European and Japanese populations…[Read more]

Great idea! Count me in. I’ll be interested in how you share the info and do the technology.

Most people can see this is the Asian century where Asia will regain its former strength it had in previous centuries as the US loses its dominance. But I can’t see an Asian property market with growth prospects that has proper governance eg security of property rights for foreign investors. If I did I would consider investing there.

So Im…[Read more]

Hi lilystar. What a crazy idea -haven’t we learnt from Europe? I imagine it would result in a market like Tasmania with a higher yield and lower capital growth as many of the young Kiwis are here in Queensland where there are jobs.

Cheers David

Oops sorry lawsjs I also got it from another source.

This article agrees with what you are saying about the market:

http://www.bloomberg.com/news/2012-03-27/bidding-wars-erupt-as-u-s-supply-of-homes-for-sale-falls.html

Cheers

David

Thanks – good points.

In Aussie we can get 5.85% today on money in the bank with capital preservation so any money invested in US has to have a lot better returns than that.

Most of the investors you are seeing from overseas are people speculating a small portion of their portfolio or some of those on this forum who are investing boots and all…[Read more]