US Atlanta, GA - USA Property Investing

Yes
Labour is cheaper, its strategic. Big win for Atlanta economy

 

This growth in Atlanta is huge! It is really the major metropolis hub of the south-east (in many ways, eclipsing any of the larger cities in Florida, for sure).

 

I have no idea what to expect anymore, my properties went up $30,000 in one month.
Will we see houses in Atlanta hit $350,000-400,000? The investor sweet spot is upto $400,000. Apparently 32% investors in Atlanta market, hedge funds back in, paying cash no contingencies, shooting home owner/buyers out of the water

Lets see… Spring 2022

 

Great lesson learnt for buying after a crash, and may never see the like again, but my best performing Atlanta property, capital growth wise is up 450% in 8 years. And that's being pretty conservative with current value, and also great scope to refurb and add further value. You gotta love the USA property market.

 

I truly wish I had more balls and started my US journey like 4 years before I ended up starting (which was about 3 years ago). Instead, my money went into Australian projects which I've had mixed success with. The same money put into the US would have given me a better/exponential result, but it is what it is. I don't dwell on the past, I only look forward to the future...!

 

@MTR where would you suggest looking now that Atlanta has boomed so much?

 

Wow, some truly amazing results there in Atlanta. I sold out way too early when when I got a double whammy of crappy tenant and crappy property manager. It's all so easy in hindsight

 

I am assuming you are cashing cash flow

Perth is booming
Rockingham for growth, low entry and 6/7% yields

suburbs
Safety Bay
Waikiki
Warnbro
Cooloongup

 

We've had seriously crappy tenants as well, but lucky we've had a decent management company to help us sort out the issues. If the management company were also unreliable, we'd have probably bailed out around 5 years ago.

 

Not sure when u got in but I started in 2011, people in US were suffering, unemployment at 9%, there were lots of crapola tenants at this time

What I have seen for over last 5 years is tenants that pay and stay

Of course its also dependent on area and quality of house imo. For example beltline is more hit and miss, but the growth has made it an amazing long term investment

 

Rockingham Australia or US? I was specifically looking for US but open to somewhere in Australia as well. With my cash flow situation, I can invest in the US easier than Australia.

 

that was Perth


But back to US very difficult all areas gone nuts

go to biggerpockets best usa forum


There is still more upside imo, my properties going up $1000 ++pw per property insane

 

I am on the forum but either it's not as well organized as Property Chat or people don't actually discuss their experiences honestly. I mostly have seen real estate agents or wholesalers just trying to sell their listings. I much prefer this forum, but I may just be using it wrong.

 

Atlanta market is currently on Fire, lack of inventory is driving prices, just received this update from a local agent....

"We want to let you know the Atlanta real estate market is the most active we’ve seen – ever. And certainly in my lifetime.This isn’t a 2008-2009 bubble, either – loan standards are very high. This is true buyer demand and it has been for sometime now. With interest rates on the rise, how long will it last? In Jan of 2020 (pre-pandemic) 22,604 homes were actively for sale here in Metro ATL and now there are only 9235. That’s crazy! We just helped a buyer secure a 4% 30-year loan, too. Rates were 18% in the 1980’s! So, that's some cheap money right there.

If you are thinking of selling your Atlanta area home this year, you will likely get the highest price ever for your home. Just this past 12 months in Fulton, Dekalb, Gwinnett & Cobb counties, we’ve seen the average sales price rise 15-26% depending on neighborhood! What an investment! With this shortage of homes, we have several home buyers willing to pay “whatever it takes” to get into a bigger home, in a desirable location, since so many people are working from home and making major lifestyle changes"

There's also some good agent updates currently on You Tube, and all saying the same thing, the market is currently crazy. Lets see if interest rate rises dampens it down as the year progresses.

 

Its been the longest boom I have ever been in, started in 2011.

I am renovating a house in Atlanta atm and my contractor/builder has had 5 people want to buy it, just from driving by
No stock/inventory, low interest rates just keep driving prices up.

I was going to sell them all when they hit $200,000 usd we are now over $300,000 usd. Glad I held off. Me thinks going to hit $350,000 usd

Now we need to see how aud/usd goes over next 12 months???

 

Yes AUD/USD depends on whether you'll keep your proceeds in US or convert? I might look at selling in a couple of years, as CGT will kill me while i'm still working. I've read that timing will be important when selling as 20% of proceeds will be withheld until your US tax returns are in and all CGT paid? Have you worked out how you'll manage this, or not particularly worried about the time lag between selling & fully recouping the proceeds?

I've just done some small renos recently between changing tenants, but would hope to get over there when I decide to sell and do the major reno's myself (or manage them at least).

 

There is another avenue/option
Looking at this

you can get finance access equity at 60% lvr for 30 years @ 5% fixed and bring money home, tack on 40% when converting USD to AUD. Tempting

 

If you sell under $300,000 there is no with holding tax. When u exceed this as a foreigner they with hold 20% however this is credited to your US taxable income. Its not a biggy

 

I might be a bit slow, but would you have an example of how this works in practice?

 

US lender will value your properties and you can take out a mortgage/loans against these at 60% lvr so you are able to cash out but still hold your properties

example
$1,000,000 valuation. = $600,000 USD, $840,000 AUD. Cash settlement

repayments made monthly on loans, rents should more than cover 5% and its a 30 year loan fixed. We cant get 30 year loans in Oz