I am currently in the United States infact in Texas. This is a great place to invest. There are good returns here however property taxes athough low compared to other cities in the United States are still high by our standards. Although there is great real estate here because rates are low once you get above a certain figure it becomes difficult to achieve the desired rents. Therefore you are looking at people who generally cannot afford to buy. There are exceptions. We are looking at a number of smaller issues including reducing some of the property taxes which then makes these investments very attractive.
Nigel Kibel
http://www.propertyknowhow.com.au
Australian and New Zealand The United States Property Researcher and education
One Day property investment research workshop just $290 Melb 26 NovemberNigel Kibel | Property Know How
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Hi Nigel
to make it easier for yourself to do the calculations on the in the city your in the property taxes are roughly 3% of the council assessed value.
regards westan
Properties in the USA 15-25% returns- email to join our database [email protected]
Hi Western
Thanks but I have already worked that out. It does make it a little tighter for straight our investing. You need to look at apartment blocks or foreclosers.
Nigel Kibel
http://www.propertyknowhow.com.au
Australian and New Zealand The United States Property Researcher and education
One Day property investment research workshop just $290 Melb 26 NovemberNigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
Hey Nigel,
Do you have an example of a property with some numbers?I am sure there are many of us curious investors who would better understand the value if we could break it down to some numbers to work out the ROI of investing here vs in other parts of the world.
ie…Purchase price vs rent return vs expenses vs potential loan lvr vs current interest rates, etc.Some numbers would be very helpful..
Rgds
kpHi KP
i know you asked Nigel the question, but there has been no answer so heres a deal i’m buying
For a 4 bedroom/2bhroom duplex for a 165K
Income $2,100 (1050 each side) $25,200 PAMortgage Interest
$115,500 @ 6.5% $7,507 PA
Insurance and Taxes $480 pm $5,750 PA
Repairs – they are new so allow 500 per year $500 PA
Management 8% $2,016 PA
TOTAL EXPENSES $15773 PAProfit $9,427
Figures on fully occupied (perhaps allow 5% vacancy)Cash into deal 30% of $49,500
other costs 3,000
Total $ 52,500Return on Investment 17.9%
If we have capital growth of 7% on the appraised value of 190K the the value increases by $13,300 in the first year 13,300 plus 9,427 = $22,727
Return on investment 43.2%
We can never be certain of any capital Gains.hope that hopes
regards westan
Properties in the USA 15-25% returns- email to join our database [email protected]
Thanks Westan.
Appreciate it…kp
Hi Nigel
I belive your back, so did you end up buying anything in Texas ?
regards westan
Properties in the USA 15-25% returns- email to join our database [email protected]
Just got back
Yes continued with an apartment complex and I am doing sums on a number of others. Dont worry Western I will look at the figures you have produced above in due course. Just explain is that 2 4 bedroom roperties or 2 2 bedromm properties. Secondly if you have to put in 30% of the deal then many people will be using a line of credit to fund it. That comes at a cost and surley comes off the bottom line. Will run through the figures in the next few days.
Ps I did buy three properties in New Zealand
Nigel Kibel
http://www.propertyknowhow.com.au
Australian and New Zealand The United States Property Researcher and education
One Day property investment research workshop just $290 Melb 26 November Buying in the United States and New ZealandNigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
Hi Nigel
no thats 2 4bedroom properties.
Yes your right if you financed the 30% from a line of credit Sure the profit is less, but then the return (ROI) is infinite [
].regards westan
Properties in the USA 15-25% returns- email to join our database [email protected]
Hello Nigel, kp & Westan,
Thanks for the above info for a start
Is the USA I/P subject to the same tax benefits here? i.e. Australia
Are you able to fly to USA once a year to check on i/p and claim that expense?
If you sell the property in the USA and bring the money back to Aussie will that be subjected to another tax?
Just trying to learn as much as possible aka >> da novice
Aussieland
It depends on how you do the structure , lets say you buy the property in your own name . You would have to pay tax in the USA then you get a tax credit for the tax that you have paid, and would only have to make the differance up in AUS at you normal tax rate.
Kind regards Rick
Monopoly, my favourite game
Hi Rikky,
I think you’re right at least thats how I understand it. The only positive is that we wont be paying anymore tax than we do at the moment in Australia. On the bad side we are one of the highest taxed natins in the world.Martin[biggrin]There are 3 types of people:1. People who make things happen.
2. People who watch what happens.
3. People who wondered what happened.Rick thanks for the reply
Certainly looks worth ivestigating there,
p.s Brissie 04 good outlook on the 1 -3
Just found this site, you may have already seen it before, if you havent has some useful info on it for the US.
Even if you start from its home page and navigate around, bit of good reading.
http://www.investopedia.com/articles/00/102300.asp
Cheers.
me again heheh, the below link is more property specific.
happy reading
http://www.investopedia.com/search/results.aspx?q=property
Cheers
].
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