Fast Forward - Atlanta GA - Property Market today

West End is fantastic, maybe $400,000?

You can pretty much throw a dart as everything is going crazy nuts. I cant see this slowing down, lowest recorded inventory in history

 

Crazy is right, i think average listing days is around 8 at the mo. $400k might be gettable, but only after getting the tenant out and doing some cosmetics. Won't be doing that for a few years as the CGT would kill me at the minute. I need to give up work and then offload, so no rush..!

By the way i dropped ZMC a message so i'll let you know how i get on with them.

 

You might also like to contact Julia Kingston. She's an Aussie based in Reno, NV specialising in international tax.

[email protected]

 

Thanks for the recommendation Jordan.

 

US mortgages let you fix for 30 years, right?

 

Yes
But not same loans for foreigners

 

Hypothetical.. if rates were to rise in the US and Aus is forced to raise as well. Wouldn’t the fact that most of our rates are variable mean that we might be forced into an uncomfortable position if rates rising across the world is faster than people can sustain mortgage repayments?

example: US average mortgage goes from 3% to 7% over a 10 year time frame. Aus is more or less forced to rise in tandem, except here people will also have repayments that are significantly higher!

 

I guess it comes back to debt/LVR

In US the advantage as mentioned by OP, they can fix rates for 30 years.
In Oz we are now in a climate where loans are reverting from interest to interest/principal, this is a 40% increase on repayments.
Low interest rates have saved the day, but when IR start rising, I expect there will be pain for some

 

Yes foreigners can now get fixed rates for 30 years, 60% LVR, 4 - 5% rate on US property.

 

Brissy1, you had quite a bad run there, can I ask what zipcode your property is in that had all the issues?

 

It was Peoplestown 30315. Just too scary an area back in 2012, although riding the crest of the Beltline wave ever since I sold..!

 

yep I do believe I had that zipcode on my do not buy list back then.

 

Yes, wise choice..!! My property manager was pretty worried every time he had to go down there checking on the break-ins / property damage. Lucky I had a pretty decent insurance policy at the time.

 

Interesting, is this full doc loan??? And is there a $ loan amount required

 

I found insurance policies woeful, many requiring $5000 deductible/excess

can you let me know your insurance company

 

I've used both Safeco and Foremost Insurance. I think it was with Foremost that I had my Peoplestown property. I recall they were a little slow in settling, or maybe the assessor was slow, but pretty much paid out in full less some depreciation etc... Good thing that going forward my premiums haven't really been affected by previous claims , which is good.

The brokers I use are Southern Insurance Associates in Lafayette, who are very helpful.

 

MTR, its an asset lend based on 60% LVR (loan to value ratio). Has to be in an LLC owned by an individual (no trusts or superfunds). No job/income requirement or assessment so what we would consider no doc or low doc. Must have a US bank and show some funds (liquidity) in the account. Enough to cover interest repayments, insurance and taxes for 6 months. Although the loan is fixed for 30 years (guaranteed the rate won't go up) there is no early prepayment penalty after 5 or 7 years depending on which option you choose.
Just had a client aproved at 4.05%

 

Has no idea this existed, how times have changed

 

I can't see rates for foreigners getting any lower. US citizens can get fixed rates for 30 years for about 3% but this is the lowest I have ever seen rates for foreigners. 5 years ago rates for foreigners were 7 - 8%.
4 - 5% for non residents is a very good rate.