All Topics / Help Needed! / Advice needed on selling and buying in the USA

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  • Profile photo of 1nvest1nvest
    Participant
    @1nvest
    Join Date: 2011
    Post Count: 2
    May 16, 2011 - 9:45 am

    HI,

    I am new on the forum and need advice. I currently live in a house that I bought for 435k in 2009 and it is now worth 535k. I owe 420k on the property this is in North West Sydney.
    The problem is 2 fold. I need a larger house for the family.

    Option1: sell this one and put some money in a larger house and keep that as my new investment then take around 40k and buy a place in the USA. This in theory would give me greater return for my money but then who do I use in the USA.

    Option2: Keep the current one and then mortgage the other property without investing in the USA. This would mean negative investment until I can get more money into the mortgage.

    Option3: Take no risk sell the current and play safe and put all the money in the new house.

    I am a risk taker (so option 3 is not really one but I thought I would put it out there) and need advice on this as I am new to the Australian property market.

    I have the monthly income to do any of the above.

    Thanking you in advance for your advice

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    May 16, 2011 - 12:07 pm

    Hi initiatechange

    Welcome to the forum.

    Your first option is a little confusing – buying a larger house and keeping it as an investment isn’t possible. You either live in it as a principle place of residency or rent it out as an investment property….or am I missing something?

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of sapphire101sapphire101
    Participant
    @sapphire101
    Join Date: 2006
    Post Count: 203
    May 16, 2011 - 7:51 pm

    HI 1NVEST

    If you want to invest in a house in the USA as many Aussies and Kiwis are at present then go for Option 1. Find a bigger house for the family but at a purchase price of around $420k. Make sure you can sell your current property for at least $490k. If you realise these 2 figures you should have approx $35k cash to buy in the USA. (I have allowed for a 5% add to the purchase price for fees and subtracting 3% to the sale price for agent fees.etc)

    Obviously if you manage to buy a new house for less and sell your current house for more then add to the $35k but that figure will buy you an average house in a reasonable neighbourhood in many US cities.
    (You may be asking where did my $100k equity disappear to? Scarey isnt it!)

    Ian
    http://theblockblog.com
    Free Property Investment Info, Tools & Resources For Investors with A Sense of Humour.

Viewing 3 posts - 1 through 3 (of 3 total)

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