US Property

Is your condo leased out or do you use it for a holiday pad?

 

My wife and I live/work in NY.

 

You could probably rent our apartment out for $5k a month.

Rentals don't work like Australia eg listing agents get 1 months rent as commission....but they don't manage the property/collect monthly rents.

Like I said....I don't advise investing in USA properties unless this is a full time job for you.

As for yield......back of the envelope numbers......

$2.2m purchase price with an 80% mortgage=$1.75m in mortgage.
4.25% 30 year fixed x $1.75m = $74kpa for interest
(not including principle which you would need in a 30 year fixed......but this is just back of the envelope calculations...... also our mortgage is 30 years at 3.5% because we locked in years ago at the bottom, also we have a lot more equity than 20% because we purchased 3 studio apartments separately/joined them as a combination in a back to studs gut renovation).

12 x $2k maintenance fees=$24k

So the cost of owning here would be $74k + $24k = $98k less 60k rent eg negative $30,000pa plus don't forget you also have to pay down the principal as well seeing you want to move in debt free in retirement......

like I said.......don't invest in the USA unless you are doing this as a living. Sydney investing will make you money with better yields and this slowdown in Australia is a temporary blip.

 

Also just to be clear, its a coop and not a condo.

Coops have the right to restrict mortgage LVR's, subletting rights etc - Condos don't (but sounds like you might know the differences etc already).

 

Thanks for the information
It looks like it is is best to continue to invest where there are reasonable returns and buy to live in.
Multi purposes properties appears not to work.
Seeing so many US property postings on PC earning 15%+ returns , massive capital growth ...but looks like these are not nice condos in NYC!
Per m2 the purchase cost in NYC is pretty reasonable (compared with HK) but the outgoings per m2 are a lot higher
Not overly concerned with borrowings as there will be none.

 

But AUD at 66, unless you have USD forget it

 

Just look at this to show how massive currency comes into play

$200,000 property in US will bring home $300,000