US Investors are buying more of US Housing market than ever before

The Detroit properties were cash funded.

We have previously obtained finance in Florida for our purchases there. The LVR is 65% for foreigners. We secured funds at reasonable rates based on a 5 year ARM for around 4% but that was a couple of years ago.

 

Interesting rate drops... This is a good thing

Fed cuts interest rates: What does it mean for you?

 

Hi MTR
can you recommend a good experienced Accountant, that understand the USA tax? I have properties in the USA, but at the moment my account in Australia doesn’t seem to give us the best advise to minimise our tax here.

Thanks

 

You will need a US accountant to get the right advice. US tax laws complicated and its not getting any better
My accountant not taking anymore clients

Go to biggerpockets and research

 

Did anyone invest in Texas? any feedback?

 

No experience in Texas I'm afraid. State taxes there always spooked me. Also, many of the desirable big cities there have appreciated so much in value, I'm not sure those fit my requirements right now.

That said, there are many tier #2 cities there that are growing fast and are beneficiaries of the growth of their nearby tier #1 city. Buy-in prices are still lowish in some of these markets. E.g. Corpus Christi, San Antonio, Waco.

 

San Antonio has already gone gang busters

I wonder if Jacksonville is another option??

 

Insurances are still a problem in most of FL, no?

 

No idea?
On that note, Insurance can be expensive in Detroit, depends on supplier

 

Oh really? What kind of insurance? I have 2 x NREIG building/landlord policies that come in around USD $60 a month, in Detroit. This is about $20 higher than similar policies in southern states.

 

NREIG have dropped their sq ft but not telling clients till next April, call them to get your rates reduced

Also very important not to under insure, otherwise may as well not insure

 

A Question- when one buy property overseas, do they get insurance from that country or you can get from Aus??

I am doing some research for overseas investment

 

Property insurance is typically from the same country .

 

How would one even start investigating this prospect??? What would be the basic costs involved? Do you go over and look at the properties? Are they managed through realestate agents like in Australia? How do you deal with damage and or issues that may arise between tenants? Vacancy Rates? Vandalism? Why wouldn't people just buy rather than rent if the properties are that cheap? raises so many questions! Intrigued. Never thought of investing OS before, can't see why not though.

 

Surley these figures can't be correct.
This home states that it was last sold for $943,000? Now it is selling for $30,000. And will rent for around $950/month! Very odd.
96 Angle St, Rochester, NY 14606 | MLS #10673159 | Zillow
This one on angle street has me thinking all kind of weird angles. Do they mean $30,000 a year? Has some kind of cyclone, water damage, major horrific event or A-bomb gone off?
Just wondering. Because this home states, it costs around $205/month and rents out for $950/month.

 

does not sound right. Dont find houses this price in Rochester. Not sure we have seen growth in this area??
Just look at the comps on the map, nothing remotely close to $900k most around $30k

zillow has lots of info keep digging

Here is one of mine i purchased in atlanta in 2011 at $34,000 now worth around $200,000. Have a look at comps all sold or selling around this price. This is rented at $1475 usd per month

Also you can view date and price of purchase under taxes/history

 

Zillow is a great tool but the information is not always correct. The $943,000 could be an error. It could also be a package deal, that is the sale transaction was part of a multi home sale for a total of $943,000 and recorded that way. I have seen that before.

 

By the way unless you are prepared to put in the hard yards dont touch it

i am ion whatsapp with contractors, its full on... not complaining but ...... not going to beat around the bush

 

In short, it's all about building a strong team on the ground. Then the experience can be similar to interstate investing.

 

Each market is different and every state has their own laws. For example, in Cleveland, some areas must have a P.O.S (Point of Sale) report from the County, which stipulates what repairs MUST be completed before the sale of the property in order to keep the houses in that area at a good standard.

The US is known as a renters market as most people would rather rent. Also, in order for people to improve their credit score they will rent first before purchasing.

As mentioned earlier in this from experienced US investors Karina, MTR and Jordan, building your "Power Team" can be a long and painful process but once you have your operations on the ground sorted, the US market can be very lucrative. My property management team sends me a report of a work order if there is any damage above $300 dollars, images and videos are sent and repairs are done. No different if I were to have a property out of state, apart from the laws and the time zone.

Great to see that you're looking to expand your investing horizon!