The only way to buy safely in the United States is to pick out the city that you wish to buy in which should be based on research and then spend as much time as possible to understand the market. It is important that you establish all the back end services that you will need.
These include Finance, which you need around 40% deposit for a residential property. For example if you are looking at a multifamly (apartment complex) that has 4 apartments its residential however once it goes to 5 its commercial.Property Management
It is difficult to find a good property manager anywhere in the United States. Part of the reason it is number one cause of litigation in Real Estate is property management. If you want to be a Property Manager in America it will cost you around $10,000 a year in insurance. That is why with some cheaper areas like Detroit and Buffalo it is very hard to find Property Mangers.Sales Agents
Like Australia most sales people sell houses they do not understand investment, again if you are going to do this yourself you need to go there and develop these contacts. Ideally deal with people who are also investors.
Lawyers and Accounts
Also critical for your success, Do not hire someone because they are cheap, Hire someone who can design a structure for an international investor. Also only deal with professional who understand property,
Investing in the United States is fun and can be very rewarding, however if you have the wrong people working for you it can also be a disaster. It is a long way to travel if you make a mistake, So unless you are prepared to establish the back end services do not bother.
To me you only invest in the USA if you are planning on building a portfolio, if you are looking to buy one property there are easier options in either Australia or New Zealand. However if you get this right it is also very rewarding and fun.
Nigel Kibel | Property Know How
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Nigel
It is very important to have a great network and you should never buy sight unseen and also be aware most agents load property with an additional fee just be careful of this too.
Always check your property in America against http://www.zillow.com and other sites like this to ensure what the seller is saying is correct.
We do have a brilliant network in America and currently running property tours to ensure full confidence in these investments.
Best of luck where ever you decide to invest.I also have a great network of people in Texas which in my opinion is a much safer state to buy in than a city like Detroit. I never buy site unseen. Because I only buy properties in person and have known the agent for a number of years I know the properties I buy are not loaded. If you take a short cut with your research it is easy to make mistakes.
Nigel Kibel | Property Know How
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Nigel
Not implying anything towards your services at all just informing investors generally about investing in America. Michigan is a great state to invest as I am sure Texas is as well.
Sure in Detroit a dying city were the population has dramatically dropped and whole streets are deserted. Just because something is cheap is not a good reason to buy there. To me Texas offers much better opportunities as it is a growing market with over 1000 people a day moving there. Texas is the 10th largest economy in the world.
If I buy properties I personally select them I do not just rely on people on the ground. My role is also to make it easy to help people buy investment properties and to maker sure people do not make mistakes.I am sure you run a good service, however I believe that Detroit is not a good area for long term investing. I suggest anyone thinking about Detroit should do there own research, it does not take a lot to realize that this is a city to stay away from. Large sections of the city have bee deserted for years. The unemployment rate is 28%. Compare that to San Antonio where it is 6.5%.
I think that Australians are drawn to certain cities because they are cheap. You should only invest if you are wanting to build a portfolio. Look at cities that have growth not cities that will continue to decline. Like Buffalo, in future years I am sure we will hear horror stories of people who have invested in Detroit.
I believe and remember I lived in Texas for nearly a year is that you need to invest your money in a city that will provide growth and a stable population that will increase rental demand over time. Please look at the market carefully before making a decision.
Nigel Kibel | Property Know How
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Let's agree to disagree you love Texas It's apart of your business and that's great it works for you no problems.
I love Michigan State not Detroit alone so let's clear that up. I have investments there at 75% ROIPrices rose in 67 out of 151 metro areas in the fourth quarter compared with a year earlier. Only 30 areas had annual
price increases in the third quarter. Sixteen areas had double-digit increases last quarter, led by Saginaw, Michigan, up 53.5%
"There's a growing body of evidence that the housing market has stabilized. The question is how quickly can it recoverand will we bump along at the bottom for a couple of months?" says Bernard Baumohl, chief global economist at theEconomic Outlook Group. "In the first couple of months of 2010, we should see a healthy turnaround."By Stephanie Armour, USA TODAY
Let's say if people want to buy in Texas you seem to be the guy
And if people want to buy in Michigan I could be the guyBut all investors should do their homework where ever they buy.
I personally buy all our property overseas whilst in Michigan too.I have not spent any time in Texas so therefore would not know about this market and would not like to go off what I may see in the news etc about that state.
Best of luck quite a few companies are into Texas so something must be working in that area.
Fair enough Jason
I am sure you are running a good service
I also believe that I provide good service to clients. I have lived in Texas and have developed great contacts there.Just one question how much of that market increase is due to large numbers of investors buying there?
Nigel Kibel | Property Know How
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Best of luck in Texas maybe we can catch up some time when we are both in the states.
I know you and I just want the investor to be careful and to watch out for sharks. If they are reading these type of forums they are already on their way to doing some good homework before investing.
I am finding that quite a few people are dealing with the US market and the seem to rely on locate agents to help them. Also many people here seem to deal with the bottom of the market. Personally I think that is a dangerous strategy. If you are going to invest in America do it for the right reasons, mainly to build an investment portfolio in the United States. Personally I will only buy properties I personally inspect. If I am spending my many or a clients I need t make certain that I am making the right decision. Remember if you make a mistake it is a long way to travel to fix it up.
Nigel Kibel | Property Know How
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Thanks correct Nigel, never buy sight unseen if you are not prepared to fly over there forget the idea of buy offshore.
Thanks Jason
Also do not buy properties just because they are cheap. It is important to look at the area you are buying in. Look at what the unemployment levels are like? Is the city growing or loosing population?
What is the future potential of the city?
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
I agree with the above posts. Just because a property is cheap doesn't make it a good deal. My personal preference is Indianapolis, Dallas, Austin and Houston. Of course there are other good areas and bad neighbourhoods within my preferred cities. I would definitely avoid Buffalo, Western New York, Detroit, Ohio and anywhere that looks too good to be true. Most properties in these areas are built around 1900-1920 and need a lot of maintenance.
There are some great deals in the US at the moment with large (2,000 sq. ft) houses, less than 10 years old with double-digit returns in great neighbourhoods for less than $100k.
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