Aussie Economy downcaste while US to Surge

property in the US sounds tempting...how much of a initial deposit do australians have to pay for a US property?

 

I agree with MTR.

I think USA is on the mend.
Some people that bought US properties a few years back are sitting pretty now.
Is it too late to buy now?
I am also interested in getting into a managed fund related to US property for my super.

 

I would still prefer Australia re than US re.
Trump may have bullish effects on the market, but I can't see it being sustainable. The problem is his policies based on previous election rhetoric (which he may reverse?) are flawed (E.g more protectionism)...I can't see it holding up long term.
As re is a long term game, I'd favor the Aussie re landscape.
Getting the timing right will be important in the US with Trump at the helm.

 

Employment is the key............Most would know i spent many years building cars at Chrysler & Mitsubishi,loaned to Ford for awhile, and knew my way around the GMH plant at Elizabeth.Not too sure if Trump has anything to do with the attached,too late now for manufacturing here, but this has to have a positive flow on effect for the economy, in fact i know it would, for every 1st tier line worker, there are 3-4 2nd and 3rd tier workers in allied part distribution.

Ford canceling plans for $1.6 billion plant in Mexico, investing $700 million in Michigan expansion instead

 

You pipped me to the post, I was reading this yesterday.

Trump has appointed a mega rich Australian who has business interests around the world and located in Michigan to oversee manufacturing. Interesting times, for those who did not jump in 2011 and missed the values tripling its not too late, but you have to do things differently today.

'I bleed America': Trump picks Australian to join business team

 

check out some of my houses on media

This property sold for $195,500 in 2014

2186 Lenox Rd NE, Atlanta, GA 30324 | MLS #5789440 | Zillow

Listed today at $1,299,000, look at comparable sales in this precinct. More money as you move up, historical precinct near the beltline.

MTR

 

That property has been rezoned though. Was single family, now multi-family.

 

your right and it's recorded, Zillow will provide/disclose just about every detail you need to know on any property.
Now look at the gains, we are talking massive, and a very short time frame regardless of zoning changes

We just purchased 2 single blocks, about 3 months ago in this precinct, one has doubled in value and the other we found out can either be rezoned duplex or triplex, submission currently with Georgia county. Also timeframe for DA and builds are half the time we takein Australia

We will post our 5 townhouse development which we will be starting shortly, profits margins around 40%

 

I also worked many years in the car industry, we were told we had to go as the economic model of subsidy/protectionism was not viable. The US and other large economies pushed the "Free trade" model and we followed. Where does this leave us now with Trump taking an anti free trade/protectionist stance?

 

I guess times change, i still believe Australia should have tarriffs to protect local jobs, Trump has the right idea here

Trump's 45% tariff on Chinese goods is perfectly calculated

Turncoat Mal wouldnt have the B@lls.

 

without a doubt, such isolationalist moves will torpedo the economy if widely adopted.
If its adopted in a narrow vertical ( which i strongly suspect will be the case), it will have much less of an affect and keep a certain section of the voter base happy.
Problem is that even if its narrowly implemented, costs rise (prevention of most economical production of goods- ignoring social issues) and the greater population will have the bear it if it deals with the vertical affected.

 

@MTR

USA looks so good and tempting, but it will require a big sea change, and the main concern: Sending money that way.. you would convert to a lot less US$ than AU$.

How to start there, baby steps?

 

Au Dollar is up at the moment. 75

We are flipping and developing property we are buying in US$ and selling and bringing back US$ or reinvesting funds back into US market.

If you are making 20%+ profit in the US on your money the chances are you wont bring it home, not too many investments in Australia can do this well, shares perhaps 6%.

I don't expect to bring any money home I am in this market while its strong. Now it gets interesting, if you keep reinvesting your profits (US$), then its a no brainer, because your US$ profits when bring back to Australia at current money play is around 35-40% just on the money conversation. Hope this makes sense.

If you are holding property then your rents are around 35-40% higher because its US$. However in the main we are selling most of our stuff.

There is a currency risk here, but the US$ is strong, economy is improving and the forecast for Au$ has been predicted to hit 65? who knows.

MTR

 

Trump is a maker and a shaker..... this is the latest positive news on the job front for Detroit

Extract from Detroit News. No wonder the property market is booming. I know a guy who has 25 properties in Detroit and he has doubled his money over the last year.

GM to add 7K U.S. jobs, invest $1B in U.S. plants
Melissa Burden , The Detroit News Published 9:31 p.m. ET Jan. 16, 2017 | Updated 4 hours ago


General Motors Co. plans to announce Tuesday that it will invest $1 billion in U.S. plants, including in Michigan, adding more than 1,000 jobs, according to a source familiar with the automaker’s plans.(Photo: Bill Pugliano / Getty Images file)

General Motors Co. announced Tuesday it will add or retain 7,000 U.S. jobs in the next few years and invest $1 billion in U.S. plants, including in Michigan. The plant investments will create or retain more than 1,500 jobs,though GM would not say how many would be new.

The automaker said it expects more than 5,000 salaried jobs will come in key growth areas such as with its subsidiary GM Financial and in advanced technology. The announcement comes three days before President-elect Donald Trump's inauguration. He has pressured automakers to add jobs and work in the U.S.

 

Hello anime bear.

 

Yep. USD is the place to be now. Australia will get a negative double whammy when USD goes up.

 

I don't know about the US. I just borrowed in HK, which is pegged to USD, for 1.6%.

 

US interest rates. Don't you just love the fixed rate time frame, 30 years.

now and lock in that rate.

Popular Loan Rates (as of 25/01/2017)
Conventional Fixed-Rate Mortgages
Rate APR
30-Year Fixed (conforming) 4.375% 4.448%
20-Year Fixed (conforming) 4.125% 4.225%
15-Year Fixed (conforming) 3.750% 3.876%
10-Year Fixed (conforming) 3.750% 3.931%