All Topics / General Property / US properties: some answers

Viewing 1 post (of 1 total)
  • Profile photo of Aeros OzAeros Oz
    Participant
    @aeros-oz
    Join Date: 2004
    Post Count: 5

    “If you can’t solve it, than it is not a problem, but problem environment you should work within…”

    Answers to some questions

    US investment is not that simple and straight forward. It is quite important to organise your structure right from the start, including legal, finances, assets protection, ground support, accounting, etc. If you miss something, it can cost you a lot, or even everything. Most likely you would just run into brick wall on your way to unlimited investment.

    Preparations for US investment are taking time. I estimate it as at least 3 months of hard, fast and efficient work, and only if you start today…

    Rent return around 20% or higher is not unusual and depends on risk you want to take. Vacancy rate correlates to location, but mostly to your property manager. I guess, as well as here or anywhere else for that matter.

    Some figures from Ozzy investors: on average you could receive 10-15% in rent return on your cash investment. That is if you don’t borrow money… If you do, that figure could multiply by 2-3 times, depending on loan conditions and price, etc…

    Plus capital gain is on top of it. If property value will double in two or twenty years, (time doesn’t really matter), than you’ll accumulate some extra equity (from 100% to 500%, depending on your structure) on your cash investment. It would be rough calculations, but still good enough.

    Yes, you can open personal bank account from here.

    Yes, some Oz investors already got loans in US. But would be these loans suitable for you – it is another matter…

    Apart from vacancy period you should know about management fees – 10-12%, plus letting fees is 4 weeks rent… It is pretty standard over there… Just need to work with it, nothing you can do, really.

Viewing 1 post (of 1 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.