US Atlanta, GA - USA Property Investing

It’ll be in all caps.

 

Agreed: it is very hard to find deals in Atlanta right now.

But the fundamentals supporting the property value-increase and rental-increase are really that it is a diversified economy that made the RIGHT moves to attract/retain medium-large size businesses across multiple industries/sectors. Atlanta is a jack-of-all-trades economy in that regard... It isn't putting all of its employment 'eggs' into one basket.

How long the growth continues is really anyone's guess. Florida as a state is being very aggressive at the moment to attract companies (and thus jobs) however typically Florida has been a retirement/lifestyle location moreso than a work-horse one. I think GA has the edge in that sense.

To me, Atlanta is the economic powerhouse of the lower-south. Obviously Texas has several much-larger economies and is still 'southern', but Atlanta is the powerhouse of its own and pretty much all of the surrounding states around it.

 

Problem is Texas has high taxes

 

Yep I couldn't make Texas stack up numbers-wise for that reason.

That said... even with the higher taxes, had one bought post-GFC in 2009 (and pre the height of the Austin tech-hub-boom properly coming in around 2011-2014), the yields were so high then that even with the higher taxes, the deals would have stacked up due to the lower buy-in price point and high yields. Rents in both Austin and Houston shot up pretty fast but Dallas/Fort Worth and San Antonio went nowhere for a long time).

 

Agree, many markets have boomed

Have enjoyed boom cycles in Oz, but it pales compared to the growth, cashflow that can be achieved in US markets.

 

Sorry to drag this up from Pg1, but the best way to long-term short is to buy a put contract, or write a naked put.

Without going into long (pun!) details, look it up and let me know If you have any questions.

 

Hey @MTR WELL DONE!!
And to other US investors as well.
Just popping by after a while and reading this is amazing and Kick $$$ thread!

Dang I was too busy caught up in DAs and council subdivision endless BS to give it a second though. Yeah I only gave it one...Doh!

 

Where the bloody hell have you been???lol

Thanks PB

Interesting AUD 68, I still think it will hit 65 as we will see interest rate cuts very soon

 

Living the dream! And the council nightmares...
There have been so many new regulations in the last few years and so many additional expenses for developers that it may take some time (many yrs) for the local market resume growth.

As for the AUD I think 70 is about right atm but as usual it will over swing.

 

Thought I should update our USA story as we are still motoring along in the USA and we are now up to 17 properties with 18 tenants.

The extra properties have been purchased using money we earned as net funds in the USA and have reinvested in more property. The % returns in Atlanta are now down to 12% but the up side is that the rents have increased.Until 2 years ago they rents had been stationery. Our purchase cost are around $68 psf, a huge difference to the $20-25psf when we started.

Our latest purchase which was purchased with tenant in place and under rented with the potential rent at $1350 pm or $16200 pa. I paid $110,000 plus renos of about $10k so about 13.5% return on my USA $'s.

142 Unity Cv, Locust Grove, GA 30248 | Zillow

My 3 year old granduaghtre saw the picture of the house and stated that it was a pretty house lol

 

If you have USD the currency play is close to 45% on your money

 

Just a heads up

Atlanta market is still strong, with offers on the table first week

My plan is to sell two.

I think corona may have greater impact on the higher end

However financing has tightened

Keep you posted

 

I have increased rents in Atlanta also, and finding tenants has been very very easy. One of my places was less than a week between tenants!

Detroit on the other hand is much more challenging for me at present. The property management companies still seem to be closed and I still have one languishing on the rental market, vacant. Hopefully things turn around up there.

 

Rental market is really strong in Atlanta right now. We have multiple rental applications on most properties.

 

just got all my rents in no missed payments at this point in time. Atlanta has reopened, lets see how we go

 

Update

The great reset

US hedge funds buying in again.
Atlanta number 1 market on their list. Prices just keep going up. More Fortune 500 companies moving headquarters to Atlanta

I am still riding this train, been one hell of a ride for a few of us who jumped in

 

The Great Reset, but not really, he thinks the markets going to tank..! Even if he's right, I love the following graph....

Median Sales Price of Houses Sold for the United States

Get a pencil and ruler and draw a line through the trend, through the 2008 credit crunch, through COVID, it is only going in one direction. There may be a pull-back but the only way is up....!

 

Depends when you got in, we jumped in year 2011. Just on currency play its been brilliant

Its pretty hard to complain, 9 years of boom cycle and still rising, from $35,000 usd to $300,000 and Rents soaring.

This is that 18 year cycle thing. Get out before 2026. But even if we dont … who cares we are sitting on cash cows

 

Major corporations are moving in (from bigger pockets article)
Atlanta has seen a plethora of companies announce that they are either moving here or expanding their operations in the area. Here are just a few recent examples.

• Microsoft announced they are building an East Coast tech headquarters. They purchased 90 acres to develop the campus.
• Cisco announced they are expanding in Atlanta with 700+ jobs.
• Airbnb announced in February 2021 that they plan to open an Atlanta technical hub.
• Google confirmed in March 2021 their plans for a massive Atlanta expansion, which will occupy 500,000 square feet in Midtown Atlanta.
• Facebook acquired 36,000 square feet of office space to expand in Atlanta.
• State Farm completed the final tower of their Dunwoody campus in 2020, which offers space for 8,500 employees across 1.7 million feet of office space.