Hi Trevor

Couple of small things potential investors should also be aware of with investing in the USA;

1) property managers who collect the rent and keep it for themselves.
2) property managers who charge you 4 times the normal rate for repairs (created by tenants)and more often than not the job is substandard if it is actually done at all.
3) tenants who stop paying rent, trash your place and once terminated leave piles of crap that cost $100's to dump
4)local thieves who watch for empty houses and then strip furnaces and copper piping for scrap causing $1,000's damage
5) insurance companies who refuse to provide cover once a tenant moves out
6) city and county inspectors who troll the records for non resident owners and issue fines for the most minor of infringements. Why? Because the city and counties are literally broke and they see foreigners as easy revenue raising targets and there is nothing you can do about. 

The moral of the story?  Do your homework carefully.

Tony

Hi Terry

I guess the problem I have is that tax law in this country now seems to be made on the run (TA's are effectively press releases)by some pinhead in Canberra who is using their value judgement.

It seems the best course of action is to always get a private binding ruling.  (for those that reckon its only an opportunity for the ATO to say no – I can only say this has not been my experience todate)

Regards

Tony

PS the PBR only covers the deductiblility of interest conflicting with the TA.  It doesn't cover the issue of distributing future capital gains to beneficiaries on lower MTR nor the catchall of Part IVa

Hi Bender

Have no doubt in certain markets and parts of the US PM is a challenge.

From my experience (also clients) the whole rental system is different there than here and NZ.  The remote managment compounds the problems as even if you are on the ground (as friends of ours are in Alaska) it sometimes requires almost a daily input which for me anyway just isn't worth it.
 
regards
Tony

Hi Fiski

Used to live and work in Bunbury 10 years ago just when the harbour from was being redeveloped.  Would love to see it now.

Can recommend solicitor Peter Ray (can't remember the name of the firm) in Bunbury (I understand he left a top tier firm in Perth and moved there for lifestyle).  I used him for myself and many accounting clients at the time

good luck

Tony

Hi Fisky

Read the deed (they are not that hard to understand) and if still not satisfied the go back to your accountant and have them explain your fathers intentions at the time (there ought to be a file note).  If a cock up was made go to the solicitor that drafted the deed and have it amended.

good luck

tony

Hi Martin

Welcome to remote management. I didnt think it should be any different to the way we remotely manage our properties in NSW – however it is. this is even though we (Aust and USA) speak the same language as often the same words have different meanings. This is still the case with having the leg up of my wife who grew up in California, so I can’t say its a cultural thing….

For what its worth I think the best thing is to just keep a real close eye on it. Kill off the lame ducks fast and let your winners run.

Regards

Tony

Hi Anthony

Buffalo has become a renters market due to the influx of investors (local, interstate and O/S) rehabing existing housing stocks over the last 12 to 18 months.

The PM’s have been using this as an excuse to have you spend thousands of $$ to make your empty property more attractive to renters. The reality is most of the full time PM’s there are originally rehab coys and the PM side has developed by default and this is why the service levels are woeful. The relationship is one where the PM holds all of the rights and us as the landlords have all the obligations. I reckon its a bit like putting dracular in charge of the blood bank.

How to solve the problems? The other poster was right by having all the utilites and city taxes mailed to you and you pay them (the PM was always late and incurred penalties and interest). We have gone one step further and liase directly with Belmont, Sec 8 and the Catholic Housing collecting the rents directly, (tenants are on 100% subsidy ) The PMs get their normal commission so they are just there to organise any urgent repairs and deal with outgoing and incoming tennants, even this requires chasing by ourselves .

So, Buffalo is a bit of a volumne game, and even though all our places are in good parts of town, around 20% are dogs, 60% OK and 20% rippers. ie 20% of our places make 80% of our profit, a bit like any business really……

Who knows maybe the Bills will follow the Knights this year and get into the playoffs/finals too.

Good luck

Tony

Hi Artaud

Live in Newcastle and doing 2 residential and a commercial developments in the suburbs of Merewether and Wallsend.

Residential is around $1000 per sq m. includes fees, the NCC BASIX and the new 2005 DCP stormwater requirements but excludes the usual floor coverings, window coverings, light fittings, driveway and landscaping..

I’m using a smaller company called Excellence. For a little more they will do a full turn key. However, like all builders you really have to watch their admin.

Project builders prices are pitched to be lower but leave out the site costs, fees BASIX which bring them up to the same as a custom (albeit basic). Not only that but from my experience (specifically Masterton) they will screw you on every item given the chance…..

For what this is worth, while living in Perth 6 yrs ago we built 2 houses in Newcastle using Mcdonald Jones. The tyranny of distance was problematic and just ment things took longer than they should have. It would have to be easier and faster to do something closer to home.

Good luck

Regards

Tony

Hi Solomon

Hope your enjoying yourself – it does take courage to push yourself out of your comfort zone.

From experience it doesn’t matter if the property is in Alaska, Nebraska, WNY or country NSW. What does matter is unless you can get the rent collected and paid to you by your PM then remote management takes on a whole new meaning.

Regards

Tony

sme

feel free to pm me

regards

Tony