Forum Replies Created
Hi Wayne and Bardon
i have just come home from 8 weeks in the USA, this was my 3rd trip in 6 months. One thing that really stands out to me is the diversity of prices in the USA. There are cities on the west coast like LA which are really high as are New York City and many of the East coast cities. Yet there are other areas where affordability is still very much apparent. At the top end I was looking at some RealEstate in Huntington Beach LA Califonia that was more like Sydney Prices, new condo’s (luxury) for about $500,000. House prices are about $1 million. Yet at the other end i saw many properties under $50,000, (not in California).
Regards westan
We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
Hi Piggy
Our contacts from Buffalo were out in Oz recently, if this friend of yours has had problems and they are one of our clients please get them to contact Me ASAP so we can sort it out. There are many things that can cause frustration, but all can be solved with a bit of support. So please encourage your friend to be in touch.
As far as high returns 30%+ are always achievable but usually the higher the return the higher the risk (important to keep this in mind).regards westan
We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
Hi Guys
thanks to those who have mentioned me in relation to the sourcing of properties in the USA. I’m over in the States at the moment (holidaying this time with the family). But i can’t help myself with property and look forward to giving you guys some insights when i get home.
And yes i have added to my portfolio while i’ve been in the USA.regards westan
(from London in Canada, its 12.30 am nite all).We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
Go tige’s
I’m off O/S for 8 weeks- keep this thread going you tiger supporters i want to come back and see the Might Richmond Tigers still in the 8. Should i book some tickets for September ? No your right. lets not get carried away.
bye westan
We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
hi ripsnorter and eveyone
wow thats a funny coincidence, as well as the 2 in Dunedin (mines 18 Scott st St Kilda do you have one in Scott st ?) and yes i’ve got 2 in Invercargill, 2 in Balclutha, 1 in waimate, 1 in wairoa, 2 in marton. Hec i’ve only got 10 left in NZ, i thought i had 12 ! i’ve sold about 12 over the past 6 months, oh 1 in Gore. but i’m getting more in the States.
I’ll sell a few more this tax year but keep properties in Dunedin and Invercargill.regards westan
We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
Ripsnorter
i’d be careful buying into Dunedin at todays prices. But i’m not thinking about selling, i’ve got properties in St Kilda and Mornington. I’ve heard the locals say prices are going to drop for years, sometimes “locals” don’t see the big picture. I remember in July 2003 a “local” in Timaru tried to warn me that now was the top of the market and not the time to Buy. I had another view. Since then prices have doubled. I still see Dunedin as Cheap by “Large” city NZ standards. Look at prices of Christchurch, wellington, Hamilton auckland etc. Sure prices have risen 100% in the past 3 years but after years of no or little growth. A lot of the gains are catch up refecting these time of on appreciation.
as far as the Uni goes, Student Numbers are strong and expected to remain so. Otago will remain one of NZ’s premier Uni’s for many years ahead. I’m not up with vacancy rates for student accomodation as i’m not in that market. A while ago word was landlords had raised their prices too high and were forced to reduce them to get tenants.
With good growth in the Industry base of Otago and Southland i see Dunedin remaining a good area to hold property. The Port has expanded as has Fisher Paykel (export whitegoods). Economically Dunedin looks good.regards westan
We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
hi guys
an interesting story in the Paper a few days ago, seems like i’m not the only one who’s shifting assets off shore.
Watch your wealth soar overseas
April 18, 2005
The Sun-HeraldPage Tools
Email to a friend Printer format
Investing offshore is a sound strategy and easier than it sounds – David Potts shows how it is done.When the going gets tough, the tough get going. Somewhere else. It seems rather sudden how Australia morphed from one of the fastest growing developed countries to a “has been”, but there it is.
Not that you’d want to put the home on Toyota shares, American real estate or a bar of gold at the Bank of England, but there’s something to be said for having some overseas investments.
Imagine all that extra diversity that everybody says you need plus the bonus – or the risk, depending on how you look at it – of exchange rate changes.
You can even invest offshore without having to leave the couch.
Just buying shares in News Corporation or Rio Tinto gives a foothold in the global economy with only a currency risk. Or, in the case of News Corporation, which has officially left our shores, perhaps Rupert risk as well.
Outlook
But then you’re still investing in a media or resources company which, let’s face it, Australia has no shortage of. Why not spread your wings?
Before the tech wreck of 2000, international shares were leaving the Australian stockmarket for dead.
More recently, as the Australian market seems to have peaked, Europe and South-East Asia have been picking up. Just as our market might be getting pricey, others probably still have some bargains lurking within.
Investing might begin at home, if not in it, but that’s not where it should end. More than one-third of the Australian sharemarket is made up of bank, insurance or other financial stocks.
And good luck to them. Only it’s somewhat limiting, considering they depend heavily, in one way or another, on the local property market.
If you take into account the size of the listed property trusts, then closer to two-thirds of the Australian sharemarket relies on real estate for its health.
I could say our market depends more on the value of dirt in the right spot as digging it up. But I won’t.
Just settle for the fact that technology stocks, almost non-existent here, comprise about one-third of global markets.
Wall Street
New York’s Nasdaq exchange is tech central.
“Technology shares are coming back,” said Rick Steele, chief executive of TechInvest, which runs the Sydney-based Technology Investment Fund, investing in stocks such as IBM, Dell, Pfizer, Johnson & Johnson and Motorola. It trades on the stock exchange until the end of the month, when it will become a managed fund.
“And the Australian market is extended.”
Not to mention the peaking of the dollar supporting overseas investments. Since it has also outstripped the returns of most global technology funds, this suggests Australian fund managers are no slouches at investing in international stocks.
In selecting a global fund, you have to decide whether it’s the country or the stock you’re after. It’s a similar problem to investing locally: do you pick a manager who follows broad economic trends? Or one that kicks tyres, picking the company irrespective of the broad picture?
You could argue either way, and probably the best solution is investing a bit in both styles. But if you’re like me, you don’t have that kind of money to throw around.
In which case go for the tyre kicking. Besides, if it is a true global success, it shouldn’t matter what country it starts in.
If you don’t want to be at the mercy of fund managers and their fees, then you could always buy international shares yourself.
It’s easier than it sounds.
The leading mums and dads broker, CommSec, will buy shares for you in the US, UK, Europe, Japan, Hong Kong and South America, among other places. You can even do it on the internet. Brokerage rates vary, but for the US it’s $US65 for an online trade.
When you sell, you can get your money in Australian dollars or leave it in an American account CommSec sets up for you, opening up a little sideline of speculating on the currency if you’re looking for an extra financial thrill.
Fortrend Securities, which charges $US60 brokerage for an online US trade, also buys and sells stock in the more exotic markets such as Hungary, Russia, Korea, India and China.
It offers a 10 US stock portfolio, with shares such as Disney, McDonald’s, Pfizer, Dow Chemical and Energizer, one way of avoiding managed funds but still getting some diversification. It’s been returning an average 14 per cent a year.
Technology and pharmaceutical stocks are the most tempting for an Australian investor.
The high price of oil – and analysts Fat Prophets estimate global demand exceeds new discoveries ninefold – also suggests it would be worthwhile considering the big US refiners.
Stocks such as BHP Billiton give you exploration and production, but the refineries are where the real money is made. Mind you, if you’re nervous about investing overseas, there’s always Caltex Australia, our only listed refinery stock. But most analysts think it is expensive right now.
Incidentally, persistently high oil prices are the most obvious threat to global growth, which could well put you off international investing.
But don’t forget an international slowdown would be magnified in Australia because without the commodity price boom, we’d be in a recession.
Other markets
The so-called emerging markets, including China and India, are investment hot spots. Strangely, India has stayed off the radar of fund managers, who aren’t usually slow to spot an opportunity.
Perhaps they just think of it as the world’s biggest call centre when, in fact, it’s a high-tech and software powerhouse. An exception is the broker CommSec, which recently offered an Indian index fund.
Still, emerging markets funds have some Indian stocks. Mum and dad offerings include funds from ABN Amro (Emerging Markets Equity Fund), Deutsche Bank (Global Emerging Markets Fund), ING (Global Emerging Markets Shares) and Macquarie (Emerging Markets Share Trust).
China, on the other hand, has spawned a few funds on its own merits. AMP launched one last week, while HSBC says it will shortly reopen its fund to mum and dad investors.
The AMP fund tracks an index of the top 25 stocks traded in Hong Kong, while HSBC’s invests in specific stocks.
Both are long-term investments and in AMP’s case there’s a money-back guarantee after six years, although you get nothing in the meantime.
The other way to invest in global shares is to choose strong brand names and, better still, monopolies. Many American and European companies are household names, but Petrobas and CVRD, two Brazilian resource giants aren’t, though at least you would have heard of South Korea’s Samsung Electronics.
You can tap into stocks such as these through emerging markets or Platinum and Macquarie international funds.
Property
We weren’t alone when we had our property boom, even if we seemed to take it further than most.
With global interest rates on the way up, buying an overseas property, even if you could afford it, isn’t likely to bring immediate gains. Besides, the exchange rate could go either way.
But what’s true of the residential market doesn’t necessarily apply to commercial property. Indeed global property securities funds are the flavour of the month.
Little wonder; there are entire categories that are ignored by the listed property trusts.
Global property funds will invest in anything from container terminals to car parks and sewage plants. Sure, you wouldn’t go out of your way to visit them, but they can make a lot of money.
Funds open to mum and dad investors include AMP Capital Investors and Deutsche Asset Management.
Bonds
Just as you miss out on some of the biggest corporate names by sticking to only the Australian sharemarket, the same is true of bonds.
And a shortage of government paper makes it virtually impossible to invest for longer than 10 years.
Yet swelling super funds as baby boomers reach retirement will put longer-dated bonds in greater demand everywhere.
“There just aren’t enough bonds to go around,” said Stewart Cowley of the leading UK fund Newton Investment Management, which is sold by Advance. As the population ages, super funds will have to put less in shares and more in bonds to guarantee a fixed income.
“There will be a natural tendency towards bonds over time,” he said.
And apart from any capital gain, an international bond portfolio will boost your annual income since it’s bound to include high-yielding corporate as well as emerging-markets securities. Most of the big-name fund managers offer global fixed interest rate investments, but check whether they’re hedged against the dollar.
We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
go thoughts castledreamer
another tip get the street directories from Kiwipathfinder, they have a few book.
1. is a NZ travellers road atlas – essential
2.North Island has every city/town excluding Auckland and wellington
3. South Island has every city/town excluding Christchurch.
These are also esential to have they will also be good for when you come back to OZ, if agents ring you with any deals you can see where in the town these homes are.
Use your map as a study tool, write on them things like no buy areas etc.regards westan
We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
Hi Peter
Sorry if my comments offended those involved with the program, i should be more aware of how my comments will be interpreted. I really do want you guys to do well, so all the best with the trip. Try to take some time to enjoy the wonderful scenery on offer in NZ. Don’t be suprised that the agents don’t blink an eye lid about you being Australians, real estate agents speak to so many of us that they are starting to pick up our accent.
i look forward to the feedback on what you guys picked up. One last comment, while i’m struggling to get enthusiastic about the NZ market in General, there are great deals about and the market in NZ is so much better than Australia’s
regards westan
We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
Hi peter
Westan and Muppet, if you are so cocky confident that the prices will inflate in Tokoroa when we come to town and that you are sitting on some houses you wish to unload or purchase to quickly turn-over for inflated prices, why on earth are you putting off the very market that you think will buy those houses, in a forum that has been established by those people????my comments were jokes about buying in tok to sell, i haven’t bought any properties in tok and at this stage don’t plan to. Let me give you some background. Peter i’ve been on this forum since back in 2002 and if you followed my threads you would be aware that i was buying in NZ well before nearly everyone on this forum. In early 2003 i was telling everyone else on the forum to buy up big in NZ (i wasn’t the only one saying this), i made it very clear that i was selling my Aussie properties to buy in NZ, i then moved to NZ in dec 2003, In all i’ve purchase over 25 properties in NZ. But the market has nearly doubled since 2003 and i have actually started selling properties in NZ sold 10 in the past 6 months. I have no problems with you guys coming to NZ to buy. In fact i think you will find that many from your previous trip asked me advice before they got here, which i was more than happy to give. BUT I’m well aware that many people come to NZ and pay too much for properties, i speak with agent often, i get out priced by buyers often (by people who don’t know the market and pay above market). You guys just need to be aware that you are paying prices for homes that no one else has ever paid. So be careful make sure that you are not one of those.
regards westan
We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
Hi gary
i hope they encourage you to look for properties where you can add value to the home. But this is also tough, as one, its hard to get tradesmen and two, its hard for you to get feel for the value of homes. you need to look at the nz market before you arrive in the country. Spend time researching the areas seeing what you get for your money. Look at http://www.realenz.co.nz to get a feel for homes and prices. and finally Pray for wisdom.
Keep in mind that 10% return is not neccessarily cash positive in NZ now that the variable interest rate is 9%.Del you will always be popular with Me (in a friend way William! better add that or else next time i see him i’ll be [
]. Your honesty is appreciated. I believe i’m the same and just calling it like i see it.regards westan
We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
Hi Nobleone
i’m investing in the US so this is the way i see things
i agree that it is worth considering the Big Picture when investing. firstly these types of things are not new people have been predicting the USA collapse for decades.
However we also need to remember that if the USA topples the whole world goes with it ! And Little old Aussie with it. Look what happening in 1929, the world is far more relient on the State now than ever before. Even the Mighty Chinese need the USA to be an economic powerhouse.
One other way of looking at it is Australia is such small player on the world stage why have all your investments in the one basket? The more i travel the more i realise that i should be spreading my assets.
Another way to view it is while the US dollar is so week compared to the aussie dollar maybe this is the time to have some of your wealth as US dollars, it wasn’t that long ago that the Aussie dollar was about 46 cents. the aussie dollar is one of the most volitile in the world over the past few years. If it retracted to 50 cents we would be making over 50% just on the currency shift ! But then again if the Aussie dollar strengthened even more then we loose.
yes there are implications of investing overseas.
As far as the USA being the Buzz, i honestly believe this is nothing compared to what it will be in a few years time when many more aussie are doing it. Its still so new that people are rightly very cautious. some were slow to see NZ, now everyone wants a bit of Kiwiland.
regards westan
We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
Hi Del
very good advice from a seasoned Tokoroa investor.
just out of interest do you still own in Tokoroa ? Or are you going to buy this week like Muppet (joke). I don’t have any spare cash[cry].
regards westan
We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
Hey Muppet
are you buying this week knowing that you can ofload them in the very near future ?[happy3]
seriously, you know more about Tokoroa than anyone on the forum and have owned there longer than anyone else on this whole web site, would you be buying in Tok at todays prices or if you owned 10 properties would you be selling most of them ?
Muppet i’m off to the USA for 8 weeks with the family[happy2][happy] and we will going to Disneyland [mickey] i’ve actually got an annual pass i picked up last Nov when i was there. Gosh investings fun !
regards westanWe find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
GO Tigers
another resounding win, they are getting better every week. This time a win against an improving side in Fremantle.
Richo 6 goals and on top of the goal kicking list.
Hey skippygirl i didn’t see the game did we look good ?
regards westan
We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
Hi kurra
i was thinking about what you said,
that was the Sydney seminar that has been organized by Westan ,even though, I did not know him personally until that nightare you not on our database ? you seem to have no knowledge of what we are doing ? Most people at the Info night had a bit of prior knowledge. would you like our latest info kit? I don’t know who you are as i only have “kurra” to go on. I’m happy to put you in touch with people who were at the Sydney Info night who have bought in the States. One of them have just bought another property (making 3 now). Please feel free to email any questions you have about the USA. I’m collecting lots of questions from people and will answer them and email them out to everyone who was present at the info night.
regards westan
We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
Hi all
Kurra i’d like to respond to a number of your comments
I found few of their properties on MLS listing in US for 1/2 price(so prices in seminar were double????)I’ve just spent 20 minutes looking and i couldn’t find them ??? Even if you are correct remember that James and Dan buy homes cheaper in OK area and send their work crews in to renovate them. So 2 weeks later and $10k into them they are not the same $20K property they purchased. As they said they buy other peoples problems and fix them. They always claim that you will pay market price for their renovated properties.
the prices on the properties have not been negotiableYes that is right, they don’t reduce there price, they don’t need to people are happy with the product.
the management fees of 12% seems quite high(I don’t know how much is the norm in US to compare)It was actually 10%. But if you wanted to employ a risk manager that would cost an extra 2%.
not enough information or pictures was supplied.
It seemed that there was a rush to close the deal very soon otherwise you could have missed out(so there was not enough time or info to think on the deal)Kurra the purpose was not to sell properties but to show what was available in the Market. I’m sorry you felt that there was a rush to buy, that wasn’t the message we were trying to portray.
As you are doing, its always better to think carefully before you make an investment decision. Buying in another country is a huge step and one that not everyone is comfortable with. If the investment possibilities sound good then i’d encourage you to keep finding the answers to your questions. Personally i’m very USA focussed with my investment dollars. Sure deals come up from time to time in NZ but the market here is not what it was.
Suprising not many investors in Australia buy in the USA, much like in 2003 when not many Aussies were buying in NZ. Give it 12 months and there will be large numbers who have taken the plunge into the USA. a number of Aussie are inthe States right now as a result of the info nights (not seminars) we ran.
Personally I’ve just bought another home this weekend in the States and got another for my 21 year old son.I’m also keen to hear from others who are buying in the States, its great to share information. There is a new forum http://s9.invisionfree.com/property2go/index.php?act=idx or try http://www.nzpropertytogo.com
it has a USA property forum for Australian investors, feel free to ask any questions there also, (its a new free forum).regards westan
We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
Hi maria
like dazzling i wouldn’t be interested in 10% properties that return $20pw (if lucky) but what if you could buy homes that put $50pw in your pocket. Then using dazzings example 75 properties would produce $3750 pw or $195,000 per year. You could employ someone to do your management of the portfolio.
ok now if these 75 homes were worth $55,000 that would make your portfolio worth $4.125 million. Now if you had a little capital growth, say 5% per annum then thats an extra $206,000 per annum capital growth. sound attractive ??but you can’t do this in Oz to my knowledge or NZ (where i’m now living). But it is possible.
regards westan
We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
Hi Jtaylor
i’ve been investing in the USA and can’t believe the opportunities available there. I was a buying in NZ but the markets moved up and i’ve been selling up to cash up for a buying assault on the Americans. Its a very different market to OZ and not one for the inexperienced. If you don’t want to use the services of others (i suppose i mean me actually) then make sure you do heaps of reseach but you will love what you discover.
I’m heading back there on Thursday for 8 weeks, this is the 3rd time in 5 months i’ve been to the states. But this time i’m taking the family and will holiday mainly but continue to learn and explore (and Buy of course).
If you want to buy you need a team on the ground there, you must have the team before you buy.
we ran some info nights last week in Oz pity you missed them (i’m now living in NZ), check out http://www.dymphnaboholt.com, Dymphna runs some great seminars on the States.
regards westan
We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
Hi beanie
those are interesting comments, it sounds like you haven’t been to Invercargill in some time.
1. Yes it is cold its located at the bottom of the south Island and gets very windy. But hey London’s worse and actually closer to the north Pole than Invercargill is to the south. I’m from Australia but I now live at Balclutha about 150km away and i wonder what happened to Summer ??? Remember no one says you have to live there to own properties there ! and 50,000 do live there, the 3rd largest city in the south island.
2. Lack of work ? well that one suprises me as there is a lack of workers. Southland has the lowest unemployment in the country (i think). As far as the smelter goes it one of the largest in the world but you are correct the Governement will not allow more electricity to be used by the smelter. But what if a New Power generator was built- say a Lignite generator ??? what if it was near Invercargill (hint do some research). What if there’s enough lignite to supply a power station for 1,000 years ?? Could this help NZ’s increasing demand for power.
3. You might be right about the wages (all of NZ has lower wages than OZ). But they still have enough to pay their rent !
4. yes lots of people moved from Invercargill during the 90’s, so many that the city was famous for being the fastest declining city in NZ, but the trend has reversed and its now growing again. Its Interesting that people wanted to move away, lots of people i know who live in Invercargill have family living in Perth- the other end of the temperature scale. I have noticed a number of people moving back there after years away from the city. (personally i wouldn’t live in Invercargill i like the warmer climates, so its back to Oz soon for me.)
5. gangs – well Invercargill is about the quietest place in NZ for Gang activity. As far as crime goes its about as safe as it gets, lots of people leave there doors unlocked etc.
You mentioned what has changed the city.
Well things go that bad a few years ago, people were leaving, home prices dropping, that the city decided to do something about it. Under the leadership of Tim Shadbolt an ex Auckland Mayor the city turned itself around. First its Institute of Tafe started an innovative program called Fee free studies this attracted thousands of students. This created a turn around that many who haven’t been to Invercargill in the past few years wouldn’t be aware of. Today the city is moving ahead. New Business are opening and locals have regained their confidence.
Finally its what the future offers that encourages me to continue to invest in Invercargill. On the books are projects which “if” they happen would bring in Billions of investment dollars.Regards westan
We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
]. Your honesty is appreciated. I believe i’m the same and just calling it like i see it.
