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Buying property in USA non-US resident

Discussion in 'General Investment and Economics' started by Seneca60BC, Oct 4, 2008.

  1. Seneca60BC

    Seneca60BC Well-Known Member

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    Anyone bought US Property as an investment and being a non-us citizen? What are the drawbacks ? and is this possible ?
     
  2. Dowdy

    Dowdy Well-Known Member

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    Re: Buying property in USA non US resident

    I looked on ebay and they're selling houses for only a few thousand. They even sell entire schools for like 400,000. I reckon it would be neat to own a school
     
  3. nunthewiser

    nunthewiser Well-Known Member

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    Re: Buying property in USA non US resident

    The White house up for sale yet?
     
  4. tech/a

    tech/a No Ordinary Duck!

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    Re: Buying property in USA non US resident

    Safer in your own back yard.

    They are in all sorts of trouble in the US.
    Huge inventory for 1
    Massive Lo doc defaults for 2
    Mass un employment for 3
    Your 12000 miles away to look after your investment for 4
    USD could well be under attack (Very few tricks up the sleeve) and you could loose very badly on exchange rates.

    Ask yourself.
    So cheap why?
    Then
    What would make housing rise again?
    Then
    When?
     
  5. nunthewiser

    nunthewiser Well-Known Member

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    Re: Buying property in USA non US resident

    .5 taxes on land and buildings a different setup also .

    a house may cost you 50 bucks in detroit but it will also cost you another5/ 10-15 k on top in taxes ( i think that maybe per year also)
     
  6. robots

    robots hello

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    Re: Buying property in USA non US resident

    hello,

    and if want to live or even just visit you would need to check yourself into Walmart the minute you arrive to get the "arsenal"

    otherwise you would be finished

    thankyou
    robots
     
  7. grace

    grace Well-Known Member

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    Re: Buying property in USA non US resident

    Anyone got any idea how rural farm property (ranches I think in their language) prices are holding up in the US? I have trouble finding information on this.
     
  8. condog

    condog Well-Known Member

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    Re: Buying property in USA non US resident

    theres a really good forum with plenty of experienced experts in this area
    www.proprtyinvesting.com.au which is set up by Steve McKnight....

    would be well worth a look for you...
     
  9. vselleck

    vselleck New Member

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    Re: Buying property in USA non US resident

    Hi tech/a and seneca60bc

    Australian residents can buy and own direct US property, but many investors prefer to own through an LLC (limited liability company) usually set up through a tax haven state like Delaware. There are necessary registrations with US tax dept (IRS) and setting up US bank accounts. I have access to a great accountant in Melbourne who specialises in US tax laws and helping Australian investors structure their practices for best tax efficiency and would be hppy to make a referral if anyone wants to contact me.

    We are in the process of buying US Properties for investors and find not paying any stamp duty a positive for all involved. Ownership can be transferred for as little as $200, so switching from company to personal ownership is not a big deal if tax conditions change.

    The main factors making the US so attractive are the incredible prices available, particularly for foreclosed properties bought from banks. Part of the sub-prime washout was that the US government is bailing out the banks, subsidising the short selling of foreclosed properties by buying out the mortgages. As a result we are able to buy properties at a fraction of normal price. US citizens are excluded largely by the banks, where credit policy closed down options long ago and it doesn't look like changing again fast, despite Obama's pleas to the contrary.

    The low prices are not reflected in rental returns. Rents have remained buoyant, because homes are a necessity of life and when people walk out of a non-recourse mortgage they still have to live somewhere. Net rent returns exceeding 20% are available in a number of cities in good locations, making the cash flow part of the investment incredibly compelling for overseas investors. When someone talks to me about cash flow positive property in Australia they generally mean break-even after depreciation. This is not improving fast with the RBA going at investors throats with rate hikes.

    The RBA can be thanked, however for the strength of our currency which is now near record highs against the pound, euro and US dollar. Our leverage into America makes a compelling argument now for securing some cash flow into the future in US dollars. Once recovery takes place in The US and Europe the Aussie will fall, according to most commentators, making the US property deals a lot brighter.

    Property prices in America will rise again when Americans can access mortgage lending and when existing home stocks are filled and new construction takes place. Population growth, particularly in the South East is strong enough to deplete reserves of housing stock and reduce vacancy rates within the next 10-18 months. New construction costs are tempered by fixed labour and material costs, ensuring new homes will be valued well above any current prices.

    The credit market is not likely to bounce anytime soon though. We expect excellent buying conditions throughout 2010 and see this as a once in life time opportunity for property investors.

    I am happy to talk to anyone who would like to know more.

    Vincent Selleck
    Mortgage Broker and Buyers Agent
     
  10. vselleck

    vselleck New Member

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  11. oliboy

    oliboy New Member

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    Re: Buying property in USA non US resident

    hi vincent

    do you experience and/or contacts in funding a property via USA banks?

    i presume rates are reasonable based on their Reserve bank rate so what equity is required and are they lending to anyone?

    do you know much about short term accomodation in florida area? the sort of place you could stay in yourself from time to time? (not specifically time share).

    obviously capital growth may be non existent however a positvely geared property and a strong aussie dollar means its a good time to buy. any investment in this sort of property is a medium to long term venture so i presume the US dollar will have to improve against the AUS dollar by then which means an attractive conversion when selling.

    also, are there immediate US taxes on selling a property? i presume you will still be taxed in aus on sale of property?

    cheers



     
  12. vselleck

    vselleck New Member

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    Re: Buying property in USA non US resident

    Hi Oliboy

    Funding is difficult for international investors in the US, with loan size a problem for most of our cash flow positive properties. i have one funding source we are taking our clients through at the moment, though they will only fund in personal names. There are more lenders in Florida willing to back overseas investors.

    Rates are comparable to Australian rates, due to the credit market being so risk adverse and loans being issued outside of traditional bank lenders. Most of our clients are buying with cash, super or from lines of credit on Australian property.

    We are experiencing some investor competition for our target properties in Phoenix and Atlanta and this is causing a strengthening of prices. The US recovery appears to progressing ahead of schedule, with GM repaying $8 bil US to the government and opening new plants. I would expect capital growth to increase in momentum by 2011, particularly where we have greatly reduced assets, like the homes we are buying in Atlanta at 15-20% of their former value. The cost of construction is many times the purchase price and population growth will place pressure on prices as new construction becomes necessary.

    Waiting for growth is not difficult when you are receiving a net return of 15-25%, and you can buy an amazing quality home for very little at the moment.

    Please contact me direct if you have further questions.

    Vincent Selleck
    US Buyers Agent - 888 Wealth Creation
     
  13. aussie john

    aussie john New Member

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    Re: Buying property in USA non US resident

    If your thinking about buying real estate in the USA, do it now while the US Dollar is so good. I have purchased eight properties in the mid West and have them rented out returning positive cash flow at 15% nett. Why even think about Aussie real estate when you are lucky to get 2%. If you deal with the right people and have the right management team in America you cant go wrong.
     
  14. bellenuit

    bellenuit Well-Known Member

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    Re: Buying property in USA non US resident

    Isn't it better to do it when the US Dollar is bad? You get to buy a lot cheaper in Australian terms and even though rental income will not initially be as good in Aussie terms, it should improve as the US currency recovers.
     
  15. evo1965

    evo1965 New Member

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    Re: Buying property in USA non US resident

    just looking into buying an investment property in the U.S.A does any one know of any good advisers on this.
     
  16. nukz

    nukz 888

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    Re: Buying property in USA non US resident

    I think the market still has not bottomed, i would just hold out for abit.
     
  17. legend1010

    legend1010 New Member

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    Re: Buying property in USA non US resident

    am looking at buying or rent buy property in usa any advise or help would be appreciated
     
  18. omeo71

    omeo71 New Member

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    Re: Buying property in USA non US resident

    Hello Everyone, looking to buy property in U.S market. I would like to hear from anyone that does or is doing this ,you can PM me if you want.Cheers:)
     
  19. prawn_86

    prawn_86 Mod: Call me Dendrobranchiata

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    Re: Buying property in USA non US resident

    Anyone looking at buying property in USA (or anywhere overseas) can contact me via PM if they are going ahead with it as i will be able to give you better exchange rates than what the bank can offer :)
     
  20. roland

    roland Well-Known Member

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    Re: Buying property in USA non US resident

    I watched a program "the other day" that advised of looming problems with titleship validity due to possible not quite so legal repossessions due to non payment of loans.

    Might be worth checking into this issue as well.
     
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