Forum Replies Created
Au$ is predicted to fall back to 65, it has been trending south for quite some time and has recently broken the 70 barrier.
I think anyone who has invested in US or the fund would have made some great gains purely on the currency play.
Hi Walter
There is certainly no rush.
I am also from Perth and invest in many markets. I am a developer and investor and understand this market well.
Perth’s market is currently trending down, this basically means there is an oversupply of properties, in particular apartments. The market sentiment I negative because our economy is not looking great, unemployment figures, mining downturn.
My opinion is to watch and wait.
Well done, great deposit, but please done be in a hurry to lose money.
Adding value is great, however you still need to pick up the property at the right price and the figures need to stack up. While property is going south what you think is a bargain today could be a mistake tomorrow.
A tip, Beechboro zoning has just been ratified, have a look at properties (corner lots) selling around $400-450K, if you can buy with the view of cutting it up and building at a later date this may be a very good strategy, or find another area where the numbers stack up.
MTR:)
I see you are a new investor, I would certainly not recommend investing overseas at this point in time.
Is Melbourne your own backyard?
There are strong fundamentals in Melb, highest immigration in Australia for one.
We have already seen considerable growth in many areas.
If you are looking at buy and hold house unless you go regional, townhouse or develop, ie build at rear of development site it will be difficult to achieve cash flow positive properties.Have you looked at Geelong?? I think this area has been earmarked for major infrastructure in the near future.
There is still cash flow properties in 17 km ring, west and north, perhaps not as desirable areas but may be worth looking at pockets. I have been developing townhouses in Thomastown close to rail, these will be cash flow positive with depreciation schedule. Around $350K mark, this may/may not suit but it would fit your criteria of cash flow positive and relatively close to CBD.
Beware that older properties that are slightly cash flow positive they can easily turn into negative because of the higher maintenance issues.
MTR:)
Troy McErvale wrote:Up to 90% of appraised value – never purchase price.
No cash reserves or pledging any cash reserves or cross securitisation required
Not crewdit score based – foreigners will nto have a US credit score
I am not sure what you mean by "dangerous loans". Maybe what you mean is that they can be negatively cashflowing if the buyer doesn't understand net rental yields. But that has nothing to do with the loan. The loan is simply a tool.
The lender is a private lender as I stated in initial post.Hi Troy
the concern I have with this loan is it is only for 3 years, what happens after this?I would be seeking a minimum of 10 year loan, any chance of this.
Also, I expect set up fees will be costly?
thanks, Marisa
Hi all
I am almost certain that this article was written some time ago by Rick Otton who has lived and closed many deals in USA.Just makes me realise how important it is to get it right and understand the product I am purchasing.
So much stock that is being sold at the moment to investors, I believe the key is being able to do your own research and interprete whether it is in fact a deal worth pursuing not just by the numbers stacking up.
Cheers, Marisa
KennyFrampton wrote:Thanks Rick.That is my impession exactly.
I do not begrudge anyone making a reasonable profit. If they didn't, then I would be concerned.
The problem is a combination of (1) the fact that they must be making a massive profit – suggest 35% minimum – on the property sale itself, (2) that they then charge a fee on top, and (3) that they misrepresent their interest. They actually deny the profit on the sale.
Yes, they do provide a number of services, and introduce the property management etc, but if they misrepresent the aspects of the property sale, then you would surely have to assume they they are taking a sling with every other service.
You are spot on here, and maybe as much as 100% in some cases, unfortunately these business' do not disclose their costs.
Typically in Australia a buyers agent purchases a property at the best possible price for their client, they disclose the cost and you are charged a percentage. The most I have ever paid was $10,000 on $510,000 property.I recently signed up with one of these groups mentioned on the forum purchasing in USA, they tried to sell me an inferior property for $52,000. I researched further to find out that it was listed for $25,000, now how much below that price did they secure the property is anyones guess. This was a small home. I am currently looking at rehabing/renovating a large home in comparison around (1600 ft) which needs major work for approximately $10,000.
To cut a long story short I requested a full refund and an explanation for the discrepancy, I was told initially it was an administration error and then the second story was that it was an exxpensive rehab, no costings were provided. I did not buy either. Interesting, they could not give the refund quick enough.
Since looking at US and doing my own research I would not touch any of these companies with a barge pole.
I think the mark ups are obsence.
CHeers, Marisa
TassieJH wrote:My wife and I have an LLC that then owns 3 properties via LLCs. Attempting to get an ITIN from Australia is a challenge!!!
The LLCs all have the EIN but as individuals we cannot obtain a credit card or easily move funds out of the US banking system without the ITIN. We have Visa debit cards issued by Wells Fargo but these cannot be used for some services that we want to charge back to the LLC as operation costs.Has anyone lodged locally in Aus with all documents certified in Australia?
Anyone with ideas as the Australian passports and other docs must be certified by Australian authorities BEFORE lodging via an accredited agent for IRS.
We are in South Australia and no joy yet with a local US/Aus tax service that can solve some of these setup issues at reasonble price/hardship…
I got my ITIN when I attended Steve McKnight's Tax Liens seminar about 12 months, Tommy Senatore who was a US guest speaker signed off and processed these for all who attended the course. I had no idea at the time that this was difficult to obtain.
Cheers, Marisa
JacM wrote:Anyone else got stories to share?Purchased 4 properties in Broadmeadows, Melb about 12 months ago, considered a rough and tough area. I was attracted to this area due to proximity to Melb (15K) and also the fact that many of the properties provided opportunities for development.
Currently all rented out from $270 pw to $300 pw, to date no problems with tenants, however some maintenance issues unfortunately.In Broady I purchased 2 houses side by side for $597K and currently plans and permits 8 unit site (cost $32,000) with Council, should be ready in August and should resell for $960K, approximately $120K per site. The other 2 properties are 3 unit sites which I will hold to develop in future as lending criteria at present stinks, I am a lo doc person.
Also purchased in Perth, Westminister State Housing area $157K, 3 unit site 7 years ago, had 1 bad tenant otherwise all good. Value now around $475K am looking at developing this property now and should make $200K.
I like State housing area, my criteria is get as close to capital city as possible and look for properties with potential to develop as I believe this is where the big developers eventually jump into these markets and you can just enjoy the ride even if you don't decide to develop.
I am now targetting an area in Perth which is currently with Council for rezoning, you beauty, I am going to try to get in before the herd.
Cheers
Marisa wrote:blackhotel wrote:Hi,
I just completed a road trip to Qld mining towns Moura, Blackwater & Moranbah. I found Moranbah to be one of the most exciting little townships buzzing with allot of new development. It was hard to believe that families could pay $1000-$1200pw rent for a new home. I heard about this town through spruikers and investment magazines but had to see it for myself.Blackwater was also buzzing but not as expensive. Moura was like a coffin waiting to be buried. I was told some homes in Moura have been vacant for over 12 mths, ouch!
Just wondering if any property investors have purchased in these towns and if so what has been your experience with it? Also, if you have financed the property, which bank did you use as I am having problems with getting finance in these postcodes.
I believe there are currently 85 houses on the market for rent, that is a bit of a worry? Wonder what is happening here?
blackhotel wrote:Hi,
I just completed a road trip to Qld mining towns Moura, Blackwater & Moranbah. I found Moranbah to be one of the most exciting little townships buzzing with allot of new development. It was hard to believe that families could pay $1000-$1200pw rent for a new home. I heard about this town through spruikers and investment magazines but had to see it for myself.Blackwater was also buzzing but not as expensive. Moura was like a coffin waiting to be buried. I was told some homes in Moura have been vacant for over 12 mths, ouch!
Just wondering if any property investors have purchased in these towns and if so what has been your experience with it? Also, if you have financed the property, which bank did you use as I am having problems with getting finance in these postcodes.
blackhotel wrote:That's the problem, i'm a low-doc borrower and banks won't lend on these post codes. I'll put in a call myself to the NAB in Mackay rather than go through broker. When I sought out the finance, I will only buy in Moranbah.I believe Commonwealth Bank for lo docs will look at Moranbah and Blackwater postcodes as I used them.
watsonc wrote:I own an apartment in Surry Hills located very close to Hyde Park Sydney. Purchased 2 years ago for $335k….after some recent research I'm led to believe I could now sell for $400k plus. Very limited stock for sale, similar but smaller apartment than mine across the road selling for $405k.Steve McKnight does mention that property only goes up in value for 30% of the time. Have we just had the 30% timeframe of upswing???
Is it time to sell???
How much we you really make after CGT? I would access equity from the property if that is possible.
I am accumulating property in Syd as I personally beleive the Syd market has a long way to go, IR are still low.
itsandrew wrote:Thanks all for the replies.The reason I initially asked was because I was looking at investing in some CF+ properties and had mining towns on the radar.
I know that there are not only miners and exec's but also major infrastructure projects. I have all of a sudden become quite nervous about the strategy because of implications that it may have on the size of the workforce and the viable lifespan of the mines and its infrastructure projects.
For me it's a matter of 'watch this space' as it seems that it will be a major issue in the upcoming election. I watched the budget reply tonight and Tony Abbot said that he would not only oppose the super tax but would also rescind it if he was elected. The flipside is that kevin Rudd is being pretty cagey on the details and definitions and it may not be quite as dramatic as he had once envisged it to be. Obviously time will tell.
Thanks again to everyone for their contributions.
Regards,
Andrew
Hi Andrew
I think the news may temporarily effect mining towns but I don't believe it will be dramatic, some investors may become nervous and not be as eager to jump in, there may be some who decide to sell up this could cause demand to drop off and and prices to fall back for a short period.However, I don't believe this tax will go ahead in its current form, this tax will effect everyone in Australia and big business are now also backing mining companies. Why would you want to shoot the goose that lays the gold eggs.
Marisa
ActToday wrote:Marissa, I would highly recommend this strategy to anyone who was prepared to do some training to find out what they are doing. It is like anything else. You must find out what is and is not right to do to make a profit and the expense of training is an expense very well spent. I have been investing in liens for a year now and cannot see any reason to change strategies at this time. I am very happy with my investing.Judith
Hi Judith
thanks for the feedback that's great, happy it is working for you. I am quite excited about going along to the seminar and finding out how it works, once again also fortunate that you are in Perth. Hopefully we will catch up down the track.Marisa
Hi Judith,
Am going to conference with my partner end of May, I am keen to find out the pros and cons. I have been researching and as a fellow formite has mentioned in prior posts there are some negatives with this strategy, its a matter of doing your homework.Can you share what your experience, good and bad has been to date?
Would you recommend this strategy to fellow formites?
Thanks,
Cheers, Marisa
ActToday wrote:Yes, poor Perth seems to dip out on quite a lot of things. I guarantee that I will do all that I can to help as quickly and efficiently as possible as all too often I have tried programs but found the support lacking to the point that I gave up.Judith
Hi Judith
I am told that buying liens can be very competitive, have you found this?
Also, am told that the quality of the property is extremely important, how do establish from Oz.I am new to this strategy but would love some feedback.
I too am from Perth. Thanks for sharing.Marisa
Hi Richard
thank you for replying.I think it will be difficult for me to get a loan as what I am looking at doing is a JV where we purchase land and transport 2 houses on the property. The land may cost around $100K and 2 houses $80K, not sure how the bank would view this.
Also, just to make it more complicated I use lo docs in Australia??
Is this going to be close to impossible?
Cheers, Marisa
Michael
thanks for the information.I will certainly share any information that comes my way.
cheers, Marisa
Hi Everyone
interesting thread. I am currently also looking at USA chasing cashflow.
Seems there are many investors purchasing in Detroit. I have been doing some research and there are not too many areas in Detroit that I would look at due to crime rate, gangs etc. However, returns are great.
Cashflow Capital is BA located in Australia which is buying for investors at the moment, see below.
I have not used CC so I have no idea what there service is like, but if anyone on the forum can comment on this I would be interested
- researches and sorts through the bank foreclosure lists to find the gems.
- refurbishes the properties to bring them up to county certification standard for you
- has attorneys that handle searches and title transfers for you
- manage the letting of the properties and collect your rent for you.
- arrange insurance cover to protect your asset
- help you setup US Banking for you (incl. Visa/Debit CArd if you want)
- US Company Structures (LLC) if required
Cheers, Marisa
alto55
I have been investing in WA market for over 5 years now and the market has now changed, as others have mentioned more houses on the market. I actually believe it is now a buyers market, unless you have a unique property, ie development potential, ocean views, well located inner city property etc.I think it was not very long algo that it took under 30 days to sell a property now I believe it is over 60 days. Some pockets in the south west have already dropped back.
Depends what you read over here, some experts state that we will not have a correction and average 10% CG in 2007 while others stating prices will fall back.
I am noticing prices in some areas have already dropped off and my valuer has basically stated same.
As far as purchasing in WA, if this is your preference over buying property East I would just sit back and watch what happens over the next 6 months as IMO there may be some good opportunities.
One thing to keep in mind in WA at the moment is that rents/yields are not very good, however there have many reports that rents are on the rise.
Cheers
(Hard work never killed anyone, buy hey why take a chance)
