How I increased my income

asian buyers buy in australia uk and us,, and their currency some times is at least 3 to 1 xD.

3 asian dollar to 1 aud

 

Yes I get this.

You can also add 30% on your income when bringing US$ home and if you have US$ then happy days.


MTR

 

They can borrow 80% LVR here though. It doesnt have to be a pure cash play.

 

and australians are not offered the same deal ??

still have to come up with stamp duty and deposit...

which in their dollar 3x more.


wait till u see LVR they get from their own country.. lol..then u know what the definition of speculation is

 

Australians (as non residents of the USA) cant borrow from lenders in the USA to purchase resi property in the USA, as a general rule - but non residents of Australia can borrow from Australian lenders to purchase resi property in Australia.

So a non resident purchasing in the US can buy an 80 , 85 or 90K USD property using cash, and its true cost after currency conversion is @ 120K AUD . But that same 120K AUD allows for a non resident to leverage into a 500K property here in Australia, because the 120K only needs to cover 20% deposit+ stamp duty - the other 80% can be borrowed by non resident purchasers.

In both cases, 120K of cash has been used, but completely different asset values are being purchased.

 

Non residents can, however these are equity loans, and they will fund purchases at 65% LVR, minimum loan of $75,000.
@GentleChief has posted on this.

I think financing in US has changed significantly since I started investing in US in 2011. There are more options for foreigners

 

Its still essentially still a non starter for many /most... especially as they dont have any credit rating or equity /assets in the US when they start out...

And lending there isnt national. Its regional. You can see a broker in back of Bourke and they can get you a loan for regional TAS or metro Brisbane or anywhere in between... Brokers in the US just don't operate that way... their models are antiquated and well behind Australia's models. Funding is regional at best, and almost provincial at worst.... You need to look for a needle in a haystack to find no resident lending options there.... and even if you can find a funding program that will allow Aussies to borrow ( such as @GentleChief has done) the funding is limited to restricted range of lenders and locations.

The point remains that it's difficult/complex/restricted there, but it's really easy here .

 

can aussies borrow from local banks/finance institute to buy oversea ?? since no one have mention it imma guess no.. i know singaporean banks are more than happy to help out.. "hsbc"

 

What does the ratio of their currency have anything to with anything, unless you have a comparison rate?

 

Not your norm, but there are several lenders currently looking at sriubd 5.5% but set up costs are expensive. You will need to weigh it up as to whether it makes sense
Even for myself I am still not sure, however if AUD $ drops further it will be a massive advantage

 

Yes and No.

Yes if its an equity release, where the security is an Australian property and you use the cash to buy in the USA. No different to releasing equity to renovate a kitchen or buy a car. This is obviously subject to lender cash out rules though, and being able to service the cash out loan. And I would suggest that if you have plans to purchase 8,9,10 US properties and need in the vicinity of $1Million AUD to do so, this would not necessarily be something many lenders would accommodate.

No if you wish to use the USA property as security

For many of these questions RE USA borrowing, you can find a YES answer if you are willing to look for extreme needles in extreme haystacks... which is why I use words like "essentially" or "generally" or "for the most part".... because you have to understand that because one person says it can be done, it doesnt make it doable for 99.9% of the rest ....

 

You can buy If you can find stock, inventory is so low in Atlanta at the moment, never seen it this bad
It can only mean one thing prices will continue to rise and perhaps look at other markets???

 

Sure @euro73 - you are right funding is based on the particular state where the lender is willing to lend. But you can get funding in Atlanta Georgia and Detroit Michigan (the two states that I am familiar with). The criteria is about (a) postcodes and (b) property value and (c) minimum lend amount.

 

Yep... I absolutely agree.. and you've been very kind in providing all of us with information on how that can be done, but if people are being asked to borrow minimum loans of 75K for example, and are restricted to 60 or 70% LVR for example... doesnt that make the 60 and 70K stock a cash only proposition ?

All I was pointing out is that its not as simple as here

 

Once you have a few properties you can do 1 loan with more than 1 security to meet the minimum loan amount. The lender I went though lends in most states across USA.

I did own more than 20 properties which I purchased in cash before I took out any loan in the US. I try to buy in cash most of the time but I saw a multi family deal I would not have been able to buy without financing so opted to finance it. Its paid off as its a high cash flow property and increased in value 40-50% in the last 2 years since purchasing it.

I used 4 properties as security and borrowed 100% of the purchase price to buy 20 townhomes for 1 million dollars with average rents of $795 - $895 month in the current market.

Getting the loan was easy as the loan was based on the value of the assets and cashflow of the properties and not on my personal financial situation. I went for a 60% LVR on the loan, so 4 single family homes and 20 townhomes came in at 60 LVR which enabled me to borrow 100% of the funds. The 20 towhomes actually valued higher than my purchase price and they allowed me to borrow against the valuation price rather than my purchase price.

 

One lender I know will equity finance and also finance new buys minimum of $75,000.

 

Just a quick update to give you an overview on what is actually happening

I settled/closed on 5385 Oakley Commons Union City - $85,000 in December 2017

This property in same subdivision, similar product just sold for $99,000
8550 Oakley Cir, Union City, GA 30291 - 3 beds/2.5 baths

So that is a significant jump of over 15% in 4 months. I expect this to continue, so where at in December 2018.... I will post.
I mentioned these yields cant last in this moving market and there is little/no inventory... sucks big time.

I expect my 4 bedroom townhouse I purchased at $85,000 to be worth perhaps $110,000 in current market 6332 Hickory Lane property as hard to source 4 bedroom town homes.

Union City is brilliant as rental returns are phenomenal compared to other suburbs in the southern pockets.



MTR

 

That's the way to do it,
Congratulations! @MTR
Market moves, you move, and I believe in closing on deals to lock in those profits.

FYI investors - Simple. Don't sweat the small stuff, as @MTR has shown here.
You make money on the rise. Not by backing out of a contract because the plumber or the landscaper said so. These are super costly mistakes and I am sure at least a few dozen (including myself) if not more can relate to these mistakes in the past. How many properties have you passed because of an inspection report? I have and I repent it! These small incidental costs can be taken into the cost of doing business.

 

What is union city like as an area? Good/bad? What are tenants likely to be?

 

Monsters..... just joking

Selection of tenant is key, same as Oz
Its a landlord market in Atlanta expect multiple applicants