Hi folks I’ve been working in tech in the US since 2016 and intend on continuing for at least another 5 years or so (on the E3 visa, no plans on a green card) however my intent is to retire back to Australia (I need to be closer family and also the healthcare here is a mess!). Property in the US has gone gangbusters over the last few years and I umm and aww about investing in the market here - do I really want to go through the journey I’ve been on during the last 20 years all over again and deal with American tenants and property taxes and all the local issues here… and I have this impression of US property being more volatile (GFC hang over?). But at the same time leveraging into a hard asset in USD with a fixed loan for 30 years is tempting if I can get it to cashflow neutral or close to from the outset. I’d be interested in booming mid-size markets such as Austin TX (where I live) or Raleigh NC or others where there’s a strong corporate presence. I already have Australian property but I also feel like I’m a bit weak on securities and there are tax advantages to dumping all my spare cash into the share markets while I’m in the US since one day when I become an Australian tax resident again, the costs basis for CGT purposes for shares becomes their value on that date so tax-free gains while I’m stateside. Ok so here are my circumstances: Age: 41 single no kids Income: $265k USD / net $15k USD per month after maxing all pre-tax deductions for 401k etc (I also reside in Texas which has no state income tax) 401k balance: $240k USD US Brokerage account balance: $120k USD (predominately index funds such as VTI and a handful of blue chips) 1 Canberra IP - $158k AUD loan / $1.05 million AUD value 1 Canberra IP - $380k AUD loan / $945k AUD value 1 Brisbane IP - $484k AUD loan / $891k AUD value 1 Melbourne IP - $443k AUD loan / $1.15 million AUD value (although if I knock down and rebuild with a $500k AUD house on it, value will increase to over $2.2 million AUD based on comparable sales) Super balance: $260k AUD Australian brokerage account balance: $150k AUD My biggest outlays are rent + utilities + dining (~$5k USD per month) and a car lease ($1.1k USD per month) for a brand new BMW M550 which brings me so much joy it makes life worth living. I will be increasing travel this year though like many of us. As you can see, a fair bit of equity and it is a generally neutrally geared portfolio. I love my job and can’t see myself retiring early but I’d love to have the confidence to be able to quit a job or boss I don’t like and get one where I do, possibly even taking a pay cut to focus on certain things. So the question is… buy a leveraged US property in a middle class area say $500-700k worth or just keep putting all my spare cash into my brokerage account for tax free growth while I’m here? Would I be dumb to miss out on this opportunity to access credit in USD for a fixed interest rate loan for 30 years?
