The salary you need to buy a home

That's the salary required to purchase a median priced house in Sydney and I think that must be in $US.

Edit- I'm assuming the Australian figures are in US dollars as they don't really seem to make sense otherwise.

 

Define "hard/easy"

Can Australians purchase a U.S. property?

Yes, we can. Australian citizens can legally own real estate, establish a limited liability company and earn income in the U.S. Australia has a double tax agreement with the U.S., which allows you to purchase a U.S. property and still get tax benefits from the investment.​

Simplified, the process is:-

Form a Limited Liability Company
Apply for a Individual Tax Identification Number
Apply for an Employer Identification Number
Set up a US bank account
Options for purchase are: self fund, Australian loan, US loan

1. for self funding you need to transfer the funds to the US
2. for Australian loans you need to set up the loan then transfer
3. for US loans you need to set up the US loan

You will need an Australian tax accountant and maybe an Australian tax solicitor. In the US you will need a US tax accountant, US lawyer and a US real estate agent (at least).

That's all before you pick a property, which is a mission in itself.

 

Doesn't sound too bad. Just like you mention, with 2 tax accountant, 2 lawyer, and real estate agent sounds like a lot of money to waste. Of course its pay off if we can get a good IP

 

I agree, but it's fun, there is also currency play here

 

Easy to buy rubbish properties in US you do not need to be a citizen, harder to source properties that are suitable as a long term investment.
Some markets are also very hot/competitive because there is very low inventory and the world is buying at the moment, 30 bids on one property not unusual, or property sold before you even get to view it.

I also don't know anyone in Australia as a foreign investor who has sourced finance at favourable US bank terms/interest rates. I have just managed to do this after many years of exhausting many avenues, but only because my business partner is a US citizen.

OP mentioned need a lawyer, US/Aus Accountant this is correct, but lawyer is a one off payment to set up LLC (Limited Liability Company) and finalise purchase no different to Australia. Accounting expenses are part of business no different to Australia.

 

It has paid off for me as I started investing in Atlanta, GA since 2011/12 my properties have gone from $35,000 purchases and today valued at around $150,000 each. I am starting to trade/sell these because I wont be paying CGT and just upgrade to new properties and better markets within Atlanta and buying land and developing as there is not enough stock to meet demand....

MTR

 

Cost of doing business. High risk if you are not on the ground. Lots of Aussies got burned trying to be desktop investors or going over but hopping on a tour bus to be shown overpriced properties.

For people like @MTR who go over, get on the ground, develop the contacts etc, the rewards are there.

You can buy a fixer upper in Atlanta for $50k, arrange to have it renovated and sell for profit. There is nothing like that in Australia.

 

There are plenty of investors around the world that have made a small fortune in US market, saw an opportunity and ran with it, 70% property crash in 2007, and now we are close to recovery.

I think I could have easily got burnt as well, I basically just networked with the right people who already had the notches on the board, it helped.
Wont say we will not make any mistakes, but I am very comfortable where and what we are buying. Will post updates on our projects on another thread for those interested as we will be commencing build of 5 townhouses early next year, in the hottest hipster Ville area in Atlanta. Wont say too much more until it happens, currently with our architect.

 

Definitely drinks on you @MTR!

 

Yeah, but I think that networking is really important. How do you think you would have gone if you tried to do the whole thing sitting at a computer in Perth? I could not do that but some Australians tried it and got burned.

 

100%. I have said before I wouldn't have achieved even 50% without networking with other successful investors, developers, consultants etc. They are the only ones who count.

 

I think we already know this but none the less interesting all the States with low income voted Trump, doing it tough.

 

Full brick vs brick veneer makes a big difference. BMT construction estimator for 200m2 (medium finish):
4br Brick veneer SA: $341,677
4br Full brick SA: $415,226

4br Brick veneer WA: $348,650
4br Full brick WA: $423,700

 

Build cost can be expensive in US similar to Australia but in certain States the land is what is cheap. We picked up a block of land to build single family home 50k, close to CBD Atlanta.
In Australia dependent on State we know we will be paying a small fortune for land

 

Yes.a lot would think this way...the only worthwhile place to buy is Sydney and that's it. else.. overseas or a different asset class.
Pity because they have lost in terms of opportunity cost with this mindset.

 

@Simon Hampel good questions. I will look it up tomorrow. I can tell you from living in one that full brick is expensive but is not thermally efficient. I live in one now and the entire house becomes a heat store in summer. Even the internal brick walls are warm to touch.

I understand that other building materials are more thermally efficient, are cheaper to build and cheaper to operate.

@Aaron Sice might know more about the details. I know he feels very strongly about this.

 

Wall material Overall R value
Weatherboard 0.55
Brick veneer 0.51
Cavity brick 0.53
Solid brick (230mm thick) 0.44
Solid concrete (100mm thick) 0.23
Solid concrete (200mm thick) 0.30
Aerated concrete (100mm block) 0.78
Aerated concrete (200mm block) 1.54
Mud brick (300mm block) 0.40
Source: Sustainability Victoria - Insulation types INFO fact sheet

Note: the higher the R value the lower the thermal transmittance called U value. So high R value = good....

 

Too much stuff in houses costs too much money.

I mean, floating toilets? Stacking rocks for 6m in the air? Curtain walling made of retractable glass screens (bifolds)? Water proofing to the ceiling? What are you doing in there?

Simple never goes out of style.

Simple though, not simplistic.