Forum Replies Created
HI All
can not use ozforex or clearfx to transfer funds from US to Australia, because I do not have a ACH (automated clearing house), this enables you to credit/debit account as mentioned above, try organising this:(
I spoke to clearfx this morning and they mentioned that the US bank process is a nightmare and even citizens from US have issues trying to organise this.So back to the drawing board, what I have established is that with EXtrade – they can organise transactions without an ACH, so how I think it works is that you are basically authorising a certain amount of money at a particular time.
There appears to be very positive comments about this company.
At this rate I could be looking at 1-2 before I set it all up, the only bonus could be that the Aus$ falls back even further.
Cheers, WI
I went to a free seminar and was not impressed all just hype, many of her strategies would not suit the new investors.
I also note that many of her clients seem to open shop providing mentoring programs on the same, which is a worry.
I have yet to meet someone who can provide details on a successful project, am happy to be wrong if anyone cares to share.
Cheers, WI
Wells Fargo will not cut it, I also have Wels Fargo account – not affiliated with OZ
Just came back from Atlanta and set up an account with Bank of America as affiliated with bank in Oz, problem is you need to set it up personally, unless you are planning a trip to US going to be a problem.I know, what a bloody headache, I have no quick solution to this, perhaps some formites are able to provide a solution other than a flight to US.
OK thanks guys, I am with Wells Fargo, will keep you posted on outcome.
Cheers, WIking-co wrote:I'm not sure what worldinvestor is referring to with the comment "You also need to ensure that the bank you use in US for purpose of chanelling rental funds has an affiliated bank account in Aust, otherwise you will not be complying with ATO and will be a problem." What specifically are you not complying with? I have an SMSF as the member (shareholder) of an LLC in Ohio with myself as the manager with a Chase bank account with no Australian affiliation. SMSF has injected capital into the company and when funds at a comeback from rent it can come back as a return on investment and transfer through ozforex. I don't see why the US bank has to have an Australian affiliation to bring funds back?Unfortunately we don't make the rules, we just follow as per SAH post, the consequence could be paying 48%+ tax, when you should be paying no more than 15%.
My thoughts – US market is obviously higher risk, issues of purchasing correct property, right returns, property management companies and currency play.
I would most definately play in your own backyard as I believe you should be an experienced property investor as mentioned above so many risks. Also I think there is no point investing in US unless you are buying multiple properties due to the costs involved in setting up structures etc. instead of positive income you may very well end up in the red.
Good luck, try explaining 25-30% interest in US as market rate???
Do some a search in the overseas section as there have been some posts on this.
The SMSF should be the member of your LLC when purchasing using SMSF (funds).
You also need to ensure that the bank you use in US for purpose of chanelling rental funds has an affiliated bank account in Aust, otherwise you will not be complying with ATO and will be a problem.
Most importantly before you start buying in SMSF make sure you consult an accountant which has already set up these structures and understands what is required to comply, otherwise you will pay dearly.
I
Cheers WI
mattnz
what has it got to do with ATO??
Nothing illegal about setting up loans which are legitimate at market interest rate, try lending from money lender 12%, I will lend to my LLCs at 10%.
At the end of the day I am not a tax accountant or lawyer, I have set up structures and paid $ to ensure that it works for me. This is just an overview on my strategy, obviously you need to seek professional help for your own circumstances.
No point investing in US if you aint got any money in the bank.
By the way, good news for investors bringings the US $ back home, am now in the process of doing this, quite exciting my plan was always to wait for Aus $ to drop, lets see how low it will go.
Hi nycc88
You can chose any timeframe.Each loan is for a 36 month period and will be extended after this period, our lawyer advised us to go this way as we then avoid paying a Government fee similar to stamp duty.
Will pm you the lawyer's details.
nyc88
I believe usainvestor has pretty much summed up my strategy.I did forget to mention an important fact that 10% with holding in tax deduction in Australia.
We will alter % interest charged as required.
My goal is not to pay any tax in US.
mattnz wrote:I met with my new accountant last week, who is meant to know his stuff regarding property. He advised me that even after applying double tax agreements, their client was getting taxed at an effective rate of 66% between USA and Australia when they used the online system. Can anyone advise what tax rates they are actually paying and suggested structures to avoid this? If the actual taxes are even close to this high, it makes it a poor investment, even if the gross returns are strong. Thanks, MattHi Matt
This does not make any sense to me whatsoever. If this were the case, who the hell would bother buying properties in US.
I have been in consutlation with an accountant who deals with US tax side and my accountant in Perth has also confirmed there is an agreement in place where you do not pay double tax, you actually get tax credits that is if you pay tax in US.I will not be paying tax in US as my structure will involve loans against LLCs. I will pay 10% with-holding tax in US on interest only, so the idea is if you personally lend money, ie 500K to your LLC to purchase properties you personally charge interest at 10% which means you will pay $5000 (with holding tax in US).
The idea is the interest on loan wipes out the income in US.
Please make sure you check out your particular situation with your US/Aus accountant, as obviously everyone's financial position will differ.
Hi nyc88
I met up with my lawyer in Atlanta in May, he has just drafted the loans and they are not yet finalised.Yes, there will be liens against all properties. Another added layer of protection but most importantly to pay no tax in US.
I did not research this stuff on google and from all accounts my lawyer has been involved in this process with a number other investors, There are associated set up fees, and also costs in US which can be minimised if structure is correctly set up. Some things to consider will be the interest rate you will charge your LLC, length of loan.
If you are purchasing in Atlanta I am happy to post you his details as I do recommend him.
Cheers, WI
Very difficult to source finance, at least in Atlanta, there are hard money lenders which some investors have been using, this is not an attractive option, means you will pay high set up fees and interest rate can also be as high as 12%.
Also the length of the loan can vary from 2-5 years which in itself holds major risk, not to mention the expensive insurance cover required. Just another layer of costs, risk and complicated paperwork.
I would not touch any loans unless I had a lawyer look at it even if it looked attractive. I think pigs will fly though.
Cheers, WI
Good for you, just make sure you have "eyes wide open".
Looks like you have plenty of time to do some research on what they are selling and who they sold to.
Cheers, WIgood advice Ziv
Trust nobody……
You need do your own homework and most importantly understand what you are researching.
Plenty of information on the forum to help you.
Reace L wrote:Hi Guys,
I have also Bought through US Invest and have not really had any problems to date. They sold me a property in Ft Lauderdale Florida and the property seems to be ok and was rented from the moment i bought it. I was worried about getting ripped off so they sent me a property valuation report from a florida registered valuer so that eased some of my concerns. The renovation was done to a high quality (according to the building inspector that they recommended)
There where a few hidden costs that popped up like the LLC registration that they charged me $499 to set up. (Later i found i was able to do it online for around $250) but apart from that i have no complaints.
US Invest only sells in Atlanta and Florida and i am keen to look at investing somewhere else. Anyone got any ideas or good companies to recommend?
Cheers,
Reace.
Hi Reace
It would be great if you posted the address to give formites an idea on what they are selling.
Cheers WINo point leaving cash in US banks as the interest is zip.
I will be transferring funds to OZ while Aus $ below US.
Interesting times, when I first posted in Feb Aus $ at 1.07 now we are around 98, with stock market going south and prediction of another interest rate drop perhaps we will see further decline.
So for those investing/buying property in US what is your cut off point, I know investors who purchased when the Aus $ at 85.
For me I am now looking at transferring funds from US to Oz.
WI
