Buying commercial property in the US is easier than residential. In many cases you can still get non recourse finance. That is where the loan is taken against the property rather than the people taking out the loan. However we have just bought a 26 unit complex for 1.3 million nd you can by a 6 unit complex for around $350,000 to $400, 000 with returns of around 8 or 9 % net. happy to discuss

What I have found is that flipping houses is just too hard. Now I am talking about the Florida market. My view is that as flipping has become more popular the banks have raised the prices and hard money lenders have raised there fees. What this means is that the margins have become much tighter. Generally the best market to aim at is the owner occupier market, because if the property is under $300,000 and sells to an owner occupier then withholding tax does not apply on the sale. However funding for owner occupiers is still tight.

I am now focusing on a strategy of buying small apartment complexes. If work needs to be done we will do it. We then have a very good management company that will rent out the properties and manage them. For their are two strategies here. One is to buy well rent it out as a long term investment and secondly buy rent up and onsell to a US investor. My experience tells me that this will be a far better investment option rather than deal with cheap homes.

Hi I think it is unlikely that Labor will be elected however with the Liberal government moving more to the left who knows. If it did happen then most people would only buy investments in outer suburbs that would mean that it would force up rents within inner city areas and potentially create slums in outer areas of many of our major cities.

That is not to say that all outer areas are bad but when you get houses built on 350 square meters blocks and they are all sold to investors that spells trouble

What this is about is trying to deal with a shortfall in revenue. The problem is that they will also hit super as well. The end result will e that less people put money away for there future. So this means that if you think we have a revenue problem now it is nothing compared to what it will be in 15 years time.

Typical politicians taking a short term fix rather than a long term solution. clearly we have no politicians with long term vision

Well part of the problem is most sellers in Australia provide you with Gross returns however these sort of returns are useless only the net returns count. In the Gold coast many of the apartment complexes have huge body corporate fees. One of the largest towers charge $40 a month just for statements. So look carefully at body corporate. do not buy new or off the plan you will pay through the nose. Look for even older hoe within walking distance to the beach that could possible be redeveloped. I Importantly look at as much as possible before making any decision.

Finally do not listen to crap especially from marketing companies. They will tell you to buy new for better tax deductions. New property can be like buying a new car you are paying for the development profit and yes the values can fall.

• This reply was modified 8 years, 10 months ago by  Nigel Kibel.

I think there are still good opportunities in the states but I think the focus needs to be on commercial property including apartment complexes. Then it is essential that you have a good property management company that can look after the investment. Trying to do this on your own is difficult because the Americans will rarely tell you something cannot be done. Plus to try and understand a foreign market is a challenge and takes more than a one week holiday. I have had enough issues working with someone on the ground so trying to do this on your own is not a realistic option unless you are prepared to spend a great deal of time on the ground.

• This reply was modified 8 years, 10 months ago by  Nigel Kibel.

Hi Steve

I agree with you about hard money especially for fix and flips infact because of demand the hard money rates have increased because of local demand however ivan is right when it comes to commercial property there are a number of banks will lend infact its easier to get commercial finance than residential.

• This reply was modified 8 years, 10 months ago by  Nigel Kibel.

Hi Pete

We have a company in Florida and one of our investors had a bad tenant and he decided to sell. once the tenant was gone the aircon was stolen and vandals broke in and damaged the place. So my advice would be to leave tenants in the property. Once it is vacant it becomes a target

Interesting however it is my understanding that withholding tax applies to all foreign nationals especially if the properties are purchased in an LLC however it does not apply if in a ccorp. However withholding tax also applies on rent calculated at 39.6% paid quarterly.

Another issue is that if a foreign national buys in an LLC estate duties can apply at 40% for dollar one. If you are an american citizen then estate duties only apply at over 5 million. However if purchased in a C Corp then the investor is protected.

There are great opportunities in the United States however it is important to get quality advice before moving forward.