How I increased my income

Just wondering what the area is like, would it be best to go there physically?

 

If you are keen on US market I would fly over for sure
Check out this forum

Biggerpockets

Networking is huge make contacts begore you go over

 

Just an update just rented this property above at $1395 per month, current value now $180,000 and rising


I dont know whats going to stop this market booming, should start a thread on this lol

Still buying

 

Got to love US property

At $1395 month , every 25 months you get your purchase price ($34,220) back through rent. Not a bad return! This is what I love about the lower priced properties, you can get your money back (capital outlay) in less than 10 years for properties under 60k.

Just bought a property in Alabama for 45k, rents will be about $700 a month, at $8400 a year in rent it would take 6 years of rents to pay back the 45k outlay.

 

Brilliant, loving the US market
I just love the cashflow, gives you choices

 

This will give you guys an idea on how this market is moving.
My property purchase in Hickory Lane, Atlanta was for $85K, I settled in December 2017.
No stock is pushing prices continually up

Here are the sales/values sold in this precinct

Top House Prices & Home Values at Hickory-Lane-Cir, Union City, GA 3029



Street Address Square Feet Bed Baths Est. Value
6200 Hickory Lane Cir, Union City, GA 30291
1,777 sqft 3 3 $135,000
6201 Hickory Lane Cir, Union City, GA 30291
1,473 sqft 3 3 $93,000
6202 Hickory Lane Cir, Union City, GA 30291
1,744 sqft 3 3 $138,000
6203 Hickory Lane Cir, Union City, GA 30291
1,693 sqft 4 3 $92,000
6205 Hickory Lane Cir, Union City, GA 30291
1,553 sqft 3 3 $101,000
6207 Hickory Lane Cir, Union City, GA 30291
1,473 sqft 3 3 $93,000
6209 Hickory Lane Cir, Union City, GA 30291
1,553 sqft 3 3 $101,000
6211 Hickory Lane Cir, Union City, GA 30291
1,693 sqft 4 3 $90,000
6213 Hickory Lane Cir, Union City, GA 30291
1,473 sqft 3 3 $94,000
6214 Hickory Lane Cir, Union City, GA 30291
1,816 sqft 4 3 $107,000
6215 Hickory Lane Cir, Union City, GA 30291
1,816 sqft 5 3 $116,000
6216 Hickory Lane Cir, Union City, GA 30291
1,816 sqft 5 3 $116,000
6217 Hickory Lane Cir, Union City, GA 30291
1,816 sqft 4 3 $128,000
6218 Hickory Lane Cir, Union City, GA 30291
1,816 sqft 4 3 $121,000
6219 Hickory Lane Cir, Union City, GA 30291
1,794 sqft 4 3 $120,000
6220 Hickory Lane Cir, Union City, GA 30291
1,816 sqft 4 3 $121,000
6221 Hickory Lane Cir, Union City, GA 30291
1,767 sqft 4 3 $123,000
6222 Hickory Lane Cir, Union City, GA 30291
1,767 sqft 4 3 $123,000
6223 Hickory Lane Cir, Union City, GA 30291
1,816 sqft 4 3 $121,000
6224 Hickory Lane Cir, Union City, GA 30291
1,794 sqft 4 3 $122,000
6225 Hickory Lane Cir, Union City, GA 30291
1,816 sqft 5 3 $89,000
6226 Hickory Lane Cir, Union City, GA 30291
NA NA NA $125,000
6227 Hickory Lane Cir, Union City, GA 30291
1,816 sqft 5 3 $126,000
6228 Hickory Lane Cir, Union City, GA 30291
NA NA NA $125,000
6229 Hickory Lane Cir, Union City, GA 30291
1,816 sqft 4 3 $91,000
6230 Hickory Lane Cir, Union City, GA 30291
NA NA NA $125,000
6231 Hickory Lane Cir, Union City, GA 30291
1,756 sqft 3 3 $139,000
6232 Hickory Lane Cir, Union City, GA 30291
NA NA NA $125,000
6233 Hickory Lane Cir, Union City, GA 30291
1,816 sqft 5 3 $117,000
6234 Hickory Lane Cir, Union City, GA 30291
NA NA NA $125,000
6235 Hickory Lane Cir, Union City, GA 30291
1,970 sqft 3 3 $130,000
6236 Hickory Lane Cir, Union City, GA 30291
NA NA NA $125,000
6237 Hickory Lane Cir, Union City, GA 30291
1,970 sqft 3 3 $130,000
6239 Hickory Lane Cir, Union City, GA 30291
1,725 sqft 4 3 $551,000
6241 Hickory Lane Cir, Union City, GA 30291
1,756 sqft 3 3 $140,000
6243 Hickory Lane Cir, Union City, GA 30291
1,850 sqft 4 3 $123,000
6245 Hickory Lane Cir, Union City, GA 30291
1,850 sqft 4 3 $123,000
6246 Hickory Lane Cir, Union City, GA 30291
NA NA NA $125,000
6247 Hickory Lane Cir, Union City, GA 30291
1,959 sqft 4 3 $126,000
6248 Hickory Lane Cir, Union City, GA 30291
NA NA NA $125,000
6249 Hickory Lane Cir, Union City, GA 30291
1,959 sqft 4 3 $125,000
6251 Hickory Lane Cir, Union City, GA 30291
2,016 sqft 4 3 $134,000
6253 Hickory Lane Cir, Union City, GA 30291
1,736 sqft 3 3 $159,000
6254 Hickory Lane Cir, Union City, GA 30291
1,850 sqft 4 3 $125,000
6255 Hickory Lane Cir, Union City, GA 30291
NA NA NA $125,000
6256 Hickory Lane Cir, Union City, GA 30291
1,850 sqft 4 3 $142,000
6257 Hickory Lane Cir, Union City, GA 30291
NA NA NA $125,000
6258 Hickory Lane Cir, Union City, GA 30291
NA NA NA $125,000
6260 Hickory Lane Cir, Union City, GA 30291
NA NA NA $125,000
6261 Hickory Lane Cir, Union City, GA 30291
NA NA NA $127,000
6262 Hickory Lane Cir, Union City, GA 30291
NA NA NA $125,000
6263 Hickory Lane Cir, Union City, GA 30291
NA NA NA $127,000
6264 Hickory Lane Cir, Union City, GA 30291
NA NA NA $125,000
6266 Hickory Lane Cir, Union City, GA 30291
1,736 sqft 4 3 $139,000
6268 Hickory Lane Cir, Union City, GA 30291
1,776 sqft 3 3 $140,000
6269 Hickory Lane Cir, Union City, GA 30291
NA NA NA $127,000
6270 Hickory Lane Cir, Union City, GA 30291
NA NA NA $127,000
6271 Hickory Lane Cir, Union City, GA 30291
NA NA NA $127,000
6272 Hickory Lane Cir, Union City, GA 30291
NA NA NA $127,000
6273 Hickory Lane Cir, Union City, GA 30291
NA NA NA $127,000
6274 Hickory Lane Cir, Union City, GA 30291
NA NA NA $127,000
6275 Hickory Lane Cir, Union City, GA 30291
NA NA NA $127,000
6276 Hickory Lane Cir, Union City, GA 30291
NA NA NA $127,000
6277 Hickory Lane Cir, Union City, GA 30291
1,890 sqft 3 3 $130,000
6278 Hickory Lane Cir, Union City, GA 30291
NA NA NA $127,000
6279 Hickory Lane Cir, Union City, GA 30291
1,777 sqft 3 3 $135,000
6280 Hickory Lane Cir, Union City, GA 30291
NA NA NA $127,000
6281 Hickory Lane Cir, Union City, GA 30291
1,826 sqft 3 3 $132,000
6282 Hickory Lane Cir, Union City, GA 30291
NA NA NA $127,000
6283 Hickory Lane Cir, Union City, GA 30291
1,669 sqft 3 3 $123,000
6284 Hickory Lane Cir, Union City, GA 30291
NA NA NA $127,000
6285 Hickory Lane Cir, Union City, GA 30291
1,890 sqft 3 3 $131,000
6286 Hickory Lane Cir, Union City, GA 30291
NA NA NA $127,000
6287 Hickory Lane Cir, Union City, GA 30291
1,826 sqft 3 3 $132,000
6288 Hickory Lane Cir, Union City, GA 30291
NA NA NA NA
6290 Hickory Lane Cir, Union City, GA 30291
NA NA NA $127,000
6292 Hickory Lane Cir, Union City, GA 30291
NA NA NA $127,000

 

Hope this is not a misunderstood post again,
It is a well-meaning, perhaps educative, but a contrarian thought process.

When the Tenants pay ALL your bills and give you as the LL, within that equation,
one-thing: freedom from the 9to6 job routine - life is great.

Only happens in that entrepreneurial nation.
Where a landlord gets paid to be a landlord.
No built-in subsidies to tenants. Sorry.

House Price 50,000, Rents 1000 per month type scenarios.

30 years of uncheckered growth has made us subsidize the tenants, unwittingly, even upto the point where we are saying never mind, please be my guest and stay in my half a million dollar property, I shall subsidize your accommodation (just pay 70 or 80% of my costs) because I know I will get a massive capital growth if I hold this property for the next 7-10 year cycle.
And the ATO will help too (that is, if they don't change their minds in a few year's time).

Just maybe, the future of this business model is uncertain - especially as we could be seeing a long decline of prices beginning in Sydney/Melbourne and maybe rippling over without underlying growth fundamentals and soon to be rising Interest rates...

This lead indicator on Australian home prices points to further declines ahead

Open to the experts take...

 

How are you all structured for tax in Australia?

Rental income, CGT all have to be declared even on oversea's properties, with tax offsets on offer?

How are members like @GentleChief and @MTR structured for tax over here with respect to your US dealings?

 

I'm pretty sure @MTR has some strategic tax setup in the Cayman Islands.

 

I don't think you are wrong - obviously people accept lower yielding properties based on an expectation they will get a return on their investment through capital gain. And yes, it will be interesting to see the rental landscape change. Sydney and Melbourne in particular may move towards the long term rental models seen in many other large cities around the world - and with a long term lease, I don't think it is too much of a stretch to see the tenancy laws evolve. I'd expect both more rights, and more responsibility for the tenant.

Cheers,
Inertia

 

I have set up LLCs (limited liability company), my Australian Trust is the member, this way I distribute income in Oz

 

USA listed LLC's?

 

yes,
Silly me I paid $1,000 set up fees in 2011.
Today I pay $300 you can do this on line.. When you know more you do better

MTR

 

Good post
.... so where do you go from here in Oz when suddenly you are cut at the knees and we go from a boom market to flat/falling market

No cash flow, no growth

What I see is many investors chasing share market, but at 6% returns if lucky, and perhaps today overpriced/close to peak....makes it a higher risk proposition

 

dont the share market returns around 7% after cost on average by just simply buying the ETF's.. there is zero luck involve in that ?? thats just asx : VAS.. last 2 year was about 10%..imagine world/us etf's... best part.. no debt no interest to pay and no tenants,

alternativly is to go oversea like yourself, but i dont think many will be willing to take the risk to buy oversea.

 

Its chalk and cheese, share yields wont come close, same as growth to US and less capital required

All to their own. Investors will always prefer to buy in their backyard

 

Gets pretty interesting now... I am looking at sourcing finance, equity release on my US properties.

This way of have US$ to play with. While markets are rising I will be making 30% on my money just on currency play.

The interest rate I am looking at is around 6%, 30 year loans

 

@MTR Attached is a list of US Lenders as of Jun 2018,

 

US property often looks as if its missing a 0 from the price! My $A400K IP yields $A1600 per month, which just pays the interest on the loan.

 

Just purchased this for $35,000, rent $800 per month
No rehab/reno required.

that equates to 15% net yield, not fluffing with the numbers I take 45% off gross returns to cover everything