US Deeply intrigued by USA market.

...now back to the US..... Just saw our 5 townhouse development site, wow. This is close proximity to the city.

We are currently looking at 5 townhouses, around 1600 sq foot each, still with county and architect needs to make some minor amendments.

We did a feasibility end values of around $265,000 each townhouse when we purchased this land last year. They just sold an older townhouse, same product for $385,000, our gross returns have gone from around 23% to 50%.

The idea is to sell the lot and take the cash and keep buying as this is a very strong market and the beginning of the building boom in USA. This means property prices have risen dramatically and build now makes sense.

We will be settling on another 5 townhouse site, better location, will be viewing this one today, its 8.00 am Atlanta time.

Just a word of advice anyone who comes to Atlanta the food will kill you, great southern cuisine, trying to stick to healthy food today, and then there is the wine.....

 

Sure you have already taken your profits off the table so the markets in Australia may as well crash. Makes sense

Meanwhile in America:

One of the world's leading credit rating agencies thinks Trump could be a disaster for the global economy

 

Yes, heard it all before, but I ignore this sort of rubbish as no one can predict the future. There is at least 3 or 4 threads of Trump

Have you heard of the Trump rally, this is real and happening today. Bull markets shares and property.

Lets just move on and agree to disagree as I don't want this thread to pulverise and lets keep it to those who are interested in investing in USA market or wish to learn what is happening with property markets in USA.


MTR

 

Two sides of a coin.

Will the finance tightening/APRA in AUS prevent a bubble/bust from happening and a more stable market going forward instead of panic decrease in property prices? Will the Trump rally in USA overheat the market or is the market at it's true value?

No one knows for sure... But again, always two sides of a coin.

 

I have always made sure I reduce my risk so I have a bet each way, but as it has turned out I managed to Trump it...haha, purchased in the Sydney boom, Melb Boom, Perth boom, US boom in 2011 and now riding the building boom in USA today.... its the beginning, my money is on USA market, we have economy on the rise, we have volume and 52 States, that is massive. I am not here to justify it.
Those who are interested in riding the gravy train should do some research and work out why US is moving and how volume works to maximise returns and if not interested just ignore.

MTR

 

Some interesting facts. Its probably been the last 2-3 years that we have also seen ongoing rental increases.

My bet is that the mid west is going to start soaring, lower entry level, infrastructure spending and cash flow will drive these markets, already seeing this on the ground.

Landlords Are Taking Over the U.S. Housing Market

Extract below

Landlords Are Taking Over the U.S. Housing Market
As Wall Street backs off of buying rental homes, small investors are picking up the slack.
by
Patrick Clark
@pat_clarkMore stories by Patrick Clark
‎23‎ ‎February‎ ‎2017‎ ‎5‎:‎00‎ ‎AM‎ ‎EST
As rising home prices, slow new home construction, and 50-year lows, the U.S. is increasingly a country of renters—and landlords.

Last year, 37 percent of homes sold were acquired by buyers who didn’t live in them, according to tax-assessment data compiled in a new report published by Attom Data Solutions and ClearCapital.com Inc.

That number may include second homes, or properties acquired by investors who seek to fix up old homes and resell them at a profit. But it’s also a strong indication that landlords are playing a larger role in the U.S. housing market.

#lazy-img-310368599:before{padding-top:50%;}


In the years following the foreclosure crisis, Wall Street drove a rise in the share of homes purchased by landlords, as private equity firms bought thousands of cheap homes. In 2012, institutional investors accounted for 7.8 percent of home sales, according to the report.

 

I have been investing in the US since 2015. I have found that ultimately your level of success comes back to who you partner with. A strong team on the ground will make or break your success unless you are live there yourself.

I also don't look at the AUD/USD situation. While I initially used AUD to invest, I have since only used USD to further my investments there.

 

Will have to agree with you on this one. Local knowledge, team, getting the right professional advice ie tax, structures also very important.
Just got back from Atlanta, last time I visited in 2011, every second house at this time had a Foreclosure Sale Sign, did not see any of these... all long gone.

This is where we are investing, around the Beltline, these are some of the properties you will see and the reason why we are targeting this precinct

http://beltlineorg.wpengine.netdna-...01/Atlanta-BeltLine_Subarea-4_Master-Plan.pdf

http://beltlineorg.wpengine.netdna-cdn.com/wp-content/uploads/2012/05/ABI-Subarea-8-Master-Plan.pdf

 

Anyone watching Atlanta on SBS Vice tonight?

 

Here is an update. Hint hint, look at these markets, hard to trade up, lack of stock

Study: Atlanta is 10th worst market for homeowners chained to starter homes

• insufficient new-home construction is driving a buying frenzy, kicking prices even higher;
• homeowners don’t have quite enough equity to finance the higher mortgages they want;
• investors and foreign buyers who can pay cash are skewing the playing field, putting regular old starter-home sellers at a disadvantage.

 

With tax time coming up, I thought I would talk about my experience with the US tax returns.

Unlike in Australia, there are local, state and federal returns that must be filed. Since I invest in the same area, my returns were essentially the same return filed 3 times. Obviously multiple investments in multiple locations using multiple structures will make matters more complicated. However it's something that US CPA's are used to.

 

@MTR I've seen so much hype over a certain US economy collapse that is supposedly happening soon (not saying I totally believe any of it) but would like to get your opinion on it, do you think it's going to effect you and your investments in the US? what are your thoughts on the US economy going bust?
Robertkiyosaki (rich dad poor dad) has said it is around the corner.

***I haven't read the full thread so apologies if this has been asked***

 

Not what we are seeing on the ground, property markets are booming because economy is on the move, hence interest rates rising. There is not enough stock to meet demand in most markets, its a huge issue in US, google it. Investors, home owners, foreigners and hedge funds continue to buy, while this happens property will continue to rise.

In US foreigners can buy property there are no restrictions, unlike Australia. In the last 12 months we have purchased 18 properties and still buying.

Here is our lastest purchase, spreading the risk with various strategies from renovating, developing and commercial

Commercial Property 2 - Atlanta

 

wow, i like the sound of that... I'm going to have to do some research on this, very intriguing! especially that there is no limit to the number you can buy, whats the lending like over there?

 

check out posts by @Be Developer
No traditional lending for foreigners, there are some options but they will be higher interest rates around 8%

 

You may find my initial purchases in 2011 in Atlanta interesting, this is when you could buy in at $35,000 now $160,000

US - Atlanta, GA - USA Property Investing

 

Hi Jordan
I must have missed out on the local returns. Been there since 2011 and haven't done a local return as yet. Paid local property tax which is akin to council rates here in Oz but that doesn't entail a return and is based on the (their) assessed value of the property.

You do need to do state returns but they are pretty harmless as they are an extension of the federal return. I guess if you had the one aggregated structure for federal tax seperating out the individual state returns would get complicated (for the CPA)

Cheers

 

Yeah

i just did a bit of research on lending then, seems like best way is cash, or become a citizen, or use equity from Australian houses for purchase, I can see my goal list changing as we speak... again haha! That 35k purchase..wow what a buy, could never get a deal like that here, especially with that amount of growth. Absolutely crazy.

would love to get your take on established multi unit apartments, have you any experience with these? Definitely something I would want to get into (grant cardone, manny khoshbins strategy)

 

This is our first multi unit (Quad)

Original plan was to convert to house and flip, we changed our strategy and decided to hold as its a cash cow.

They have been completely renovated and have just rented 2 out at $750 each, got another application on third unit.

Will revise the figures once they have been all rented

Atlanta - Single Family Home

 

Love American style homes!