Thanks for posting – You know we had a discussion before you left for Ohio, however help us out, why is it so cheap, according to Zillow the average house price in Toledo is $54k which a predicted decrease of 0.5%. We all know it proximity to the world renowned dump in Detroit. Not being a twat, just more to ensure we are not blinded by the price.
So whats the area like? perhaps an indication of the murder rate :) The price is dirt cheap – why is it cheaper than its neighbours?
I have done quite a few set up for SMSF investors purchasing US property (let me make it clear – I donot promote or recommend property), however I wrote this piece on what an investor should consider before making the investment in the states. http://redwoodadvisory.com.au/investing-overseas-property-smsf/
Happy to receive feedback (Jay Heinrichs had a brief review when I was drafting it)
Happy to write another piece with your input Mr Trump! :D
Cheers, Ivan
This reply was modified 10 years, 6 months ago by Redwood.
Re the above – agree, get the right advice! if someone is claiming ‘free’ advice be sure the understand the commissions they earn – each financial planner/ property advisor/ broker should disclose this to you and be sure to do your due diligence on them.
For a honest and integrity based advisor this will not be an issue, however for a one-stop shop, this will be very important to understand. Seen many a clients lose their life savings based on poor advice based on commissions earned – look at off the plan properties for example where advisors earn up to 8% on property sales.
My personal story is that I changed from CBA to another bank – where the lender was a family friend. I signed the loan docs and did not pay attention to the security at the back of which two of my IPs were crossed. No he did not bring that to my attention the shifty bastard. He said it was a credit decision….
It took me ages to get my head around it, X coll just did not compute for me, I was left scratching my head, the lender told me not to worry but I wanted an independent opinion.
A quick chat with Aaron C from this forum and another broker and it all came together. My situation is quite safe, however, the lender is currently undoing the X coll as we speak.
I suggest you chat to one of the fantastic brokers on this forum and work on your personal situation and how you can undo the X as it will catch up with you in the long run. That the 2 cents of a non-broker.
To cut the story short, my partner and I attended a seminar held by a property investment company followed by their expo. They made it sound so easy. Owning a property, pay off $400k mortgage within 15 years odd, get second property within 2 – 3 years.
A property seminar that makes it so easy? wow! please don’t be sold, please do your due diligence on the people running the seminar, be free to drop their name here and see if anyone has experience with them and if they have a track record of success. I don’t invest there, however, please be careful before you proceed.
What is your thoughts about buying with this sellers market in Melbourne?
How would you buy if the property is asking $750K -Land 700 SQm -3 bed Home – rent 400 Pw ?
Current growth of the area is 10-12% for last 12 months. ( Burwood East)
Buy now or wait?
Will fix the interest?
MI
Burwood east is a fantastic area, close to Deakin and depending where exactly is close to Tram and will depend which train station. For that property the rent is low (is it on highbury rd?).
Burwood East has a strong asian influence and therefore no shortage of buyers in the current market and ensure you measure distance to nearest high school (PLC?)
Why people write off Melbourne I don’t know. Melbourne has continued to show great growth and in the right areas a fanatastic yield. Comes down to the right due diligence (price/ growth/ location/ yield)
Obviously there are a heap of considerations including the slope of the block and what type of bricks you are using – a high footing will waste a lot of bricks.
Generally stumps are cheaper however, we usually go slab. Remember there are height regulations for the stump to floor level.
@redwood…. Is it just as dead on the other Aussie site sommer something? that site was even more user unfriendly than this site.
the average investor is just not signing in and conversing anymore. Just those in the bizz…
G’day Jay, trust all is well mate! Writing to you I think or beuatiful Oregon, nothing better than great craft beer and great waves.
I am on the other forum and yes it is quiet, no shortage of hearing how great commercial property is with 60% finance though :)
In the SMSF, I donot promote US property, however, the volume of SMSF purchasing US property is lower through the doors of Redwood and I checked with another administrator who does 1000 plus funds and he has said the same.
I am aware of busloads of chinese heading back to the US next month through a guy I know who promoted Atlanta at the Bejing property expo, he quoted one Chienese guy saying “I can buy 50”. Given the Chinese come to Melbourne and buy 10 apartments in Melbourne “Cash” I believe him
Not sure what that means, but, I can tell you Australians are continuing to use SMSF to purchase Australian property.
Perhaps education from people such as yourself is helping
Cheers, Ivan
Welcome to the site and I look forward to hearing your contribution.
I note that from your signature you are from ‘propertyknowhow’, your partner Nigel Kibel is a significant contributor to this forum, not being smart, however, Nigel will point you in the right direction.
Also, review the overseas property thread, read Freckles and Jay’s comments.
My name is John Carney and I’m a real estate investor and developer with 17 years of experience in both Australia and the US.
Smart real estate investment is a team sport. I believe that everyone has the ability to be a profitable property investor in either country with the right team in place. There is no better time than right now to get started.
Hi John, Welcome to the forum.
How long have you been operating in the States? What makes Pheonix an attractive investment for overseas buyers? no need to explain AZ, every man and his dog is promoting Atlanta.
N.B you weblink on your signature does not work as spelling is incorrect.
Hi there, am glad this post has resurfaced, as I was also looking at BH for my next investment. I am from WA so it is my 1st time looking interstate. Can I get your thoughts people, on the following. i am considering and comparing investing here to perhaps that of a wa mining town – Karratha and surrounds? Any thoughts? It would also be a buy without viewing if it is BH. i need low risk and money in my pocket each week. I can’t afford for potentially high vacancy rates, due to cf. Also, I have approximately 90,000 in Super, and wanted to consider smsf? I believe it is costly to set up, but can someone advise on how it works. Ie as it is a Superfund doing the investing, would I still have access to the +ve CF? or would i need to let it build up again and use as a deposit for another IP? I also have my ppor valued at say 490,000 and one IP valued at say 400,ooo, with loans of 635,000. Equity therefore of 255,000. Is it better therefore to use my equity here or go the smsf? We have a household income of around 100,000 PA so would hope serviceability isn’t an issue… thanks for your help anyone and everyone :)
Hi there,
I can cover the SMSF side. With your super balance you will most likely borrow to invest. Cost of set up of SMSF and and Bare Trust will be around $2500. Yes, its the SMSF doing the investing, if you purchase a residential property, you cannot live in it and will need to rent it out. For BH, you will need to consider whether your property will be able to be rented in the long term and importantly, the maintenance required, particularly if its an old property.
HI Jamie, Thanks. I can’t seem to search for topics anymore on this new website format. What do you think of Gatherum Goss? I need someone who is familiar with trust etc
I’m struggling with the new web format….I have no idea what is going on.
Last year I painted my beach house and balcony myself.
Pros –
Cheaper – cost me $1500 in materials plus my own labour and the quotes ranged from $13k to $20k. Added to that is the beer I drank during the dar – hey it was fun!
Paint quality – a lot of painters water down pain, which may reduce quality – they is an exterior paint job in a coastal area.
Cons –
quality – I mentioned paint quality however, obviously, I am not an expert so there were a few spots in the high areas that were not the highest standard however, who is to say a 'expert painter' would not provide the same
Time – painting takes a long bloody time. Painting my balcony with beams etc took ages as did the exterior
Safety – My house was a double story – I can tell you I did not use scaffolding, just a ladder an paint can
However this is an exterior, the same considerations will be included for an interior including the smell, moving furniture, materials such as paint blankets and sticky tape.