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US Buying in Texas

Discussion in 'Where to Buy' started by barnes, 4th Apr, 2016.

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  1. barnes

    barnes Well-Known Member

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    Dew to unfortunate family circumstances I would need to purchase a property in USA (Texas) ASAP for my relatives, but preferably in my name. As an Australian citizen what pitfalls should I look at during the process?
    I'm not planning to go there myself. I have a few questions to those who purchased in the States before.
    1. Can I give my relative the power of attorney to purchase it without me flying there?
    2. The property will not be rented out, at least not now - (do I need to hire a US based accountant, or I can do cash returns in US myself)?
    3. I'm not planning to live in US - will I be a tax resident as a property owner there?
    4. What taxes I might face except property tax after purchase as long as I'm not an American citizen?
    5. Is it better to purchase it in my relatives name (a citizen by birth and lives permanently there) or it doesn't matter from taxation stand point?
    6. I know you some of you have used a trust structure for your purchases, is there any advantages of this form of investing in US (in my case it's only 1 property)?

    Thank you for your time.
     
  2. jpcashflow

    jpcashflow Well-Known Member Business Member

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    Very risky to be honest... a emotional purchase to risky.. could your family members rent?
     
  3. barnes

    barnes Well-Known Member

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    No, renting is out of the question.
    And there is nothing emotional, just a logistic problem that must be taken care of.
    A house will be carefully selected, checked by a handyman whom I have taught myself. Houses are at least 2-2,5 times cheaper than they are in Adelaide. What is so risky about it?
     
  4. Ardi

    Ardi Well-Known Member

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    Is it viable to cough up the money for a long term lease for your family members rather than purchasing a property in Texas
     
  5. barnes

    barnes Well-Known Member

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    No. What is the problem with purchasing there? I might use it in the future for myself. I'm not planning to sell it or rent it out.
     
  6. barnes

    barnes Well-Known Member

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    C'mon guys, nobody can share any knowledge on US purchases?
     
  7. ellejay

    ellejay Well-Known Member

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    Isn't there a poster called aussieintexas or something similar, do a search maybe.
     
  8. D.T.

    D.T. Adelaide Property Manager Business Member

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    @Ozzie in Texas

    Also try googling the bigger pockets forum, thats an american eqivalent to property chat
     
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  9. ellejay

    ellejay Well-Known Member

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    Beat me to it DT
     
  10. barnes

    barnes Well-Known Member

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    Thanks D.T., you reckon there are Aussie investors there? But thanks anyway.
     
  11. jpcashflow

    jpcashflow Well-Known Member Business Member

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    Well there are a few things to consider.
    1) Currency fluctation - Also don't forget because the dollar is say .61 cents it does not mean you are going to get a rate of that much.
    2) They are 2.5 cheaper but does to mean you are going to make 2.5 more money as well.
    3) I think best bet is get to the USA and have a look for your self.
     
  12. barnes

    barnes Well-Known Member

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    Thanks for your reply. I have lived in the States almost 10 years - 35 years ago. :)
    Currency doesn't bother me - my cash is in USD.
    I'm not buying it for any gains whatsoever. I'm not interested in real estate as a wealth creating thing anymore.
     
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  13. wogitalia

    wogitalia Well-Known Member

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    Only one I can answer is the tax residency question, having a property there will not make you a resident for tax purposes, if you're still based in Australia, conducting business/employed in Australia and have the majority of your ties in Australia you will remain an Australian resident for tax purposes.

    If there is no income and it is not available for rent you wont include in your Australian return, the US system though may require a return as their system is quite different.
     
  14. MTR

    MTR Well-Known Member Premium Member

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    yes there are plenty of Aussie investors on BP

    You have my legal/accountant contacts they can help, they know what they are doing. Accountant/tax laws complex you need professional advice always, penalties are severe so don't ignore this one to save pennies

    Go to Biggerpockets and search Texas market, taxes, good neighbourhoods this sort of stuff you will find out exactly what you need to know on this forum, so much information
     
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  15. Player

    Player Well-Known Member

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    Just had a quick look at BP. Looks like a decent forum. I might join and have a deeper navigation. This thread has piqued my interest in the US. I don't see value anywhere here for the risk or rubbish returns. Maybe Perth will be good buying when it bottoms. I don't own anything in WA

    @MTR are you still focussed solely in Atlanta and only on SFH? Would you look at Texas at all for SFH or multi's?
     
  16. MTR

    MTR Well-Known Member Premium Member

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    I am focussing on 3 markets at the moment

    Not looking at Texas not to say that there are no opportunities, however tax is high. I am chasing growth and cashflow, the way we did it in 2011 is over, now it's a different strategy

    There are some very good strong markets not necessarily focusing on Atlanta and I am now working/networking with locals. Plenty of opportunities, multi on the agenda not ruling out commercial deals. Have a friend there at the moment networking with some of my contacts

    I am flying over shortly.

    MTR
     
    Last edited: 5th Apr, 2016
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  17. Redwood

    Redwood Well-Known Member

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    Texas is an awesome place to buy. Which city are you buying in?

    Dallas and Houston have had steady markets for some years given the strong fundamentals.

    I am sure you know, good property costs money, the entry level is not what it is in the ghetto's up north you will be paying $200k plus for a good property. As you are not renting it out that makes it easier for you.

    The trust structure may refer to is a LLC which can be set up from here - its similar to a Pty Ltd company here. Ensure you seek some advice on which name you purchase in and remember you will need a bank account.

    I strongly encourage you to fly there....I am in Texas next month and flights were dirt cheap ....

    MAke sure you understand the local environment - of course I have no idea of the background.

    Cheers Ivan
     
  18. barnes

    barnes Well-Known Member

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    Hi MTR.
    My relative contacted me today on the question of a power of attorney. Her RE agent said that if I want to have the property in my name I need to make a power of attorney and verify it at the embassy, which is in Canberra I presume.
    Had anyone had the same requests from RE agents over there?
     
  19. Redwood

    Redwood Well-Known Member

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    Most buyer use a power of attorney with the 'registered agent' i.e incorp- I wouldn't!
     
  20. barnes

    barnes Well-Known Member

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    I'm buying in Austin suburbs. Since it's only 1 property without a business outlook, do you really think I need a trust structure? And why do I need a bank account? My relative has got one, I'm planning to use it.
    I can't fly there in the near future. :(