Investing In US Property From Australia

[Mre_man]

Hey Everyone, I live in Sydney & am only just beggining my real estate investing. I have been looking into US real estate and am very interested in purchasing a buy to let property. Just wondering if anyone on this forum, from australia has rental property in the US? The only reason i ask is because im worried about the whole distance issue, and to see if its possible to safely let property overseas? Have you had problems that forced you to travel to and from the US often? What are the fundementals I need to have in place in order to Let out property in the US from Sydney successfully? I am planning on putting deposits down on 4 properties and getting financing from an australian bank to cover the rest. Also not sure if Condos or Houses are a better investment... I look forward to your responces and apoligise for the many questions. Cheers

 

[paytown50]

mire man,

First off let me tell you that I'm an american. However I have worked with and still work with many aussies to invest in real estate here in the states. I think I can help you out with some of your questions.

1. As far as safeness is concerned I think that is more of a personal issue than anything. It of course is very crucial that you be working with a team that knows what there doing and that you can trust.

2. Most of my aussie investors I have seen once or not at all. So I dont think you have to come over. Though I would suggest you come over to build the relationship with your team members.

3. Again you need to have the team in place to have your rentals succeed. Without that your going to be fighting upstream. I have always said to aussie investors that the most crucial thing for them is not where they invest but with who.

4. Depending on the area you choose to invest in condo's or houses may be better. The gen rule though is by at a value and dont care if its a condo or a house.

Hope this helps

Brian Payton

 

[vincent888]

Hi Mre Man

I am a buyers agent and mortgage broker specialising in buying US property for Australian investors. In order to be successful when buying US property from Australia you need to have excellent support on the ground. Getting a good property manager is challenging and getting advice on where to buy to minimise risk is essential.

Australian banks will not lend money on American property. Lending options are very limited in the US as well for foreign nationals.

You would be well advised to think about tax structure as well. Buying in LLC's can save tax and protect your assets.

I would recommend doing more research. There are quite a few links if you google "trusted network of US buyers agents" where you may find assistance with more information.

Hope you buy well

Vincent Selleck

 

[Ben RE]

It is certainly a nervous experience, but is it really much different to investing in another Area in Australia. Well really that is the way you have to think about it. Sure the Laws are different to an extent but the principles are the same and certainly the goal is the same.. Make money, build wealth.

I totally agree with the above posts that it will be essential to get a hold of a good agent that really specialises in just this sort of thing, otherwise there will be far too much learning and trial and error going on for you and the agent. You really don't want to be a test case for them.

Ben

 

[lawbarolsky]

Any progress??

hey everyone, i live in sydney & am only just beggining my real estate investing. I have been looking into us real estate and am very interested in purchasing a buy to let property. Just wondering if anyone on this forum, from australia has rental property in the us? The only reason i ask is because im worried about the whole distance issue, and to see if its possible to safely let property overseas? Have you had problems that forced you to travel to and from the us often? What are the fundementals i need to have in place in order to let out property in the us from sydney successfully? I am planning on putting deposits down on 4 properties and getting financing from an australian bank to cover the rest. Also not sure if condos or houses are a better investment... I look forward to your responces and apoligise for the many questions. Cheers

hi, i was wondering if you have made any progress with your us purchases? I'm an aussie living in singapore wanting to find out more info on investing in the us, and it's about 8 months since you posted your note. Have you taken the plunge? Has it worked out? As you no doubt know, the exchange rate is even more in our favour since feb, but maybe the market there has picked up???
Lawrence

 

[mattio]

In order for you to be successful with investment overseas, you should have a good team in the US. Furthermore, the type of property to invest in depends on a state. In some states, it is the best to invest in single family homes, in others in duplexes and etc. What I am trying to say is Research the area before buying. Good luck!

 

[ellers]

I lived in the US for 7 years and returned to Australia only a few months ago. While in the US my wife and I owned a property there (Condo in NJ near NYC),and sold it a few months before returning.

I personally wouldn't try to purchase and manage US property remotely, and have no desire to own US property again. With that said, there's good property to be had, and the market is very different to Australia.

As another poster said, it very much depends on location and the people you're working with, but for me, I wouldn't go back.

I heard of bus trips of Aussies (and perhaps others?) coming to the US (Florida I think) to buy up property. If true, good for them.

For me, the mortgage rigmoral and bank beaurocracy was something I'm not keen to do again. Property managers and "condo board" (strata company) were run like there were in the 1960s. Rules and regulations were byzantine. Look up "rent control" for amusing reading.

If you have connections to the US and are familiar with the market and still interested, then go for it. But like I said, I don't have any plans to purchase there again.