Forum Replies Created
Detroit is not known as the murder capital of the USA for nothing, it is and will remain a very dangerous place, what a terrible waste of life when someone was trying to help others
British Buyer
Your thoughts are very interesting ,I am thinking on why you would be concentrating on condo’s? with the HOA fees eating into your ROI, why not stick to SFH. I noticed in your last email that a return of 6.86% on a condo. I can get 6% by leaving my money in Australian banks and not have the hassle of dealing with having to rent out a unit and all the other worries.
You are correct in saying that it is a BAD investment
Jeff
Mojorising
I am also reading his thoughts and observations, I have steered away from Florida, concentrating on area’s that have the possibility of capital gain and area’s that have only positive cash flow.
I have purchased in NY state for a very good ROI 25%nett for an investment of under 60K.
I did look into Florida when I was there earlier this year I was advised to stay away from condo’s as the HOA fees could eat up any profit and many HOA were going broke and had no money to look after their respective property.
I like to concentrate on single family homes
Jeff
wanelad wrote:Thanks for the warning yes has been tempting however if there is a double dip like many expecting, could well be stungHi Wanalead,
I checked out your blog, very encouraging, I know that this is a property forum, not wanting to get away from what everyone is here for. Still our eternal destination is far more important in the end.
” What does it profit a man if he gains the whole world and looses his own soul”
Jeff
Hi BevK,
I have started a business called invest USA, we are in the process of setting up a website which should be online in a week or so.
We do currently have properites that are for sale that have tenants in them already, getting ROI over 16% nett. Prices starting from 31K
When you look online at certain properties that seem to good to be true you need to be sure of were exactly these properties are what suburbs.
I have been involved in property investing here in Sydney for many years, I have recently purchased a property in the NY state area which is currently undergoing rehab, when it is finished and tenanted it will return me over 25% net.
My business partner has a background in finance and is a mortgage broker as well as a property investor.
I would be happy to make contact with you or you can email me at [email protected]
Regards
Jeff
mojorising wrote:Thanks Jeff,Would be interested if anybody has kowledge of actual numbers.
Like in Australia the basic rule is that we pay CGT at our marginal rate of income tax on 50% of the profit – for property held more than 12 months.
Mojorising,
I have contact with an accountant that I use when purchasing property in the USA, he is based here in Sydney, he did tell me, but as I am holding property for positive cash flow only I didn’t take to much notice. I can find out.
Are you interested in purchasing property in the USA?
Jeff
dan luchmaya wrote:You would be better off buying already tenanted homes from other companies. The property that I purchased fro0m TRR settled in July and reno completed 2 months ago and still no tenant. TRR finally came back to me and said that I needed to do some more reno works to attract a tenant.
What a dud!!!Hi Dan,
My brother in law purchased 4 properties in Atlanta over 5 months ago, he has only rented out 2, the other 2 are still vacant. I do sympathise with you.
I have started a business that deals with investment property, however unlike most of the people that are selling property in the USA I have a property investment background, my business partner is a mortgage broker, who is also a property investor.
We concentrate on area’s in the USA were not many people here are investing. Some of the area’s offer very good positive cash flow and good ROI prices start from 31K up to 100K, already tenanted.
The other area’s we deal in provide capital gain but one would need to hold for at least 7 years. The positive returns are not bad.
I can only suggest that if you were to make another purchase and from what I read of your situation that maybe unlikley. Please give us a call we would give you much better advise.
Jeff
Hi Mojorising,
From what I understand it is a sliding scale, the longer you hold onto the property then the less the capital gains tax you will have to pay. I have a US Tax accountant here in Sydney that I use, as my investment strategy is to hold property for positive cash flow my main interest is in that area, however I will be purchasing some property in the future that will be for capital gain.
I also think that capital gains tax is Federal not a state tax issue, therefore it would not matter if you purchased in Florida or Denver.
Have you purchased any property yet or just doing research?
Why Florida?
Jeff
Hi JacM
There are a number of companies that have set themselves up here in Australia to advise people were to purchase in the USA, some are buyers agents the others are not. I have read some of the blogs on these forums from what i have read they provide a service, it is a hit and miss result.
My brother in law purchased 4 properties from one of these business;s was promised quick rentals for all of the 4, months later 5 to be exact as far as I know he has only rented out 2 of the 4 and the other properties are vacant, his property taxes were double from what the brochure said.
I know that my brother in law should have been careful…still one needs to be dilligent in there research.
I don’t know what property investment experience these business’s have or what financial expertise that have in advising someone to invest.It is still cheaper than getting on a plane and traveling to Atlanta or some city in the USA and just looking around to se what is out there.
I have been researching the USA for a while and so have a background in real estate investing here in Sydney I have come to the belief that one can gan good capital gain here but forget positive cash flow.
The USA has many opportunities you need to know were they are looking.
Be very careful when talking to these companies as they offer very good ROI, but can they deliver????
I have set up a business that advises were to invest with a business partner who like me is an investor here, but also has a financial background and is a mortgage broker.
If you are interested in having a chat then you can email me
Jeff
Hi Kate
I am investing in upstate NY, good entry point re price, the people that I am dealing with only sell tenanted properties. ROI can be up to 25% nett.
I am also looking in to Denver as the capital gain prospect is better that upstate NY.
It depends on what your strategy is re capital gain hold for 4-7 years or positive cash flow.
I have set up a business that advises investors with info re were to invest.
My email is [email protected]
If you want to get more info
Jeff
Hi British Buyer,
You need to be carful re HOA, I remember when I was looking into Florida property, I has a real estate agent based in Orlando that was concerned some of the HOA associations were going bankrupt with no funds in there accounts to do any repairs on the condo’s. I can only advise you to do some serious research on any condo’s that you maybe thinking of.I would advise you to stick to single family homes.
I have read some terrible figures re vacancy rates in Florida, what have you found out about that.
I attended a property investment show in Sydney on the weekend and there was a company there selling lots of Florida properties, with very good ROI.
Still I am skeptical on Florida…good luck
Jeff
If one was to invest OS, why would you invest in India, I did business in India a few years ago and to be honest I would think twice about doing anything there again. Property investment would be a nightmare I would think.
I am investing in the US property market residental homes. Good positive cash flow, they speak the same language as us and there legal system is not to difficult to get arround.
Why India?
Jeff
Gullotemi,
I read the article that you posted. I am amazed at all the people that are purchasing in the Sth Florida area, I know that there seems to be good deal out there but as far as capital gain is concerned there are better area’s in the USA.
I am investing in cities that has good vacancy rates, unemployment figures are promising and in some area;s there was no housing collapse.
Getting positive cash flow around 25% net
Jeff
British buyer,
Were did you get the idea that a tenant can with hold rent, you would have a management company that would be renting the property out, no tenant would have the right to withhold rent. I would consider that breaking the lease. How would the tenant know that you were an overseas investor
I own a number of properties here in Australia and just settled on one in the USA, the management company will deposit the rent on a monthly basis You need to speak with a US tax accountant
I have spoken to 2 tax accountants here on setting up an LLC and no one has said the things you are saying….perhaps because you will be borrowing money…..most of the people that I am dealing with are cashed up.
If you lived here in Australia I could put you in touch with a couple of very switched on Tax guys….
Jeff
Hi PQ,
I have not heard of this before I just purchased a property in the New York state area and I have an attorney there that has handled the purchase. Did you set up an LLC to purchase the property, what tax structure have to set up? Did you speak with any accountnat familiar with Australian/USA tax laws?
Jeff
Hirav,
I would be very skeptical in purchasing a property for 15-20K. I have been looking into USA property for a while and have not seen to many of in this price range, if they are they would need extensive rehabs. Can I ask you which area in the US you have seen these properties?
You would need to from a LLC to be able as a foreign person to invest in US property. You would need a US attorney, one can do it yourself on the net, it costs anywere from $600-$1000.
I am using an attorney and it costs $750 plus filing fee’s….total price just under $1000.
Were are you living….what state in OZ?
Jeff
Hirav,
My email was incorrect it is [email protected]
Sorry about thatJeff
Hirav,
I am based in Sydney, the company is called Invest USA. We are just finishing up our website. You can contact me [email protected]
Hi Kimbopumpkin,
There are more fees involved up to $3000 to purchase a property, from what I understand once you pay an entry fee you get access to further info.
I can give you you 2 accountants that can advise you one charges $170 per hour, the other $330 per hour, the difference being is that the $330 per hour fellow has over 17 years experience with Price Waterhouse Cooper doing US Tax.
My email is [email protected]
The tax advise gives you the way to structure your purchase, if it is for one purchase then you will be given advise for that.
My strategy is to purchase a number of properties for positive cashflow so I can supplement my income.
You need to think about what your objectives are capital gain or positive cash flow.Jeff
Hi TassieJH
I have opened up my profile to receive emails. If not you can email me [email protected]
I can be contacted there.
Jeff2tract
