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Anyone here from Australia who's investing in RE in US?

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Mckenzie

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Australia housing market is very very expensive, especialy in Sydney & Melbourne where I live. $500k can not buy you much at all! So I've been looking around and now have my eyes in the States to invest in RE.

I'm currently reading "The book on Rental Property Investing" by Brandon Turner, and subscribed to his biggerpockets forum. It's fascinating me how much you can do over there if you have some cash & a creative thinking mind. Wow, you can even buy a 3 bed rooms one, eg. Ohio for as little as $69,900!! I'm imagining all the wonderful possiblilites...

If you have done this or are doing this right now, would you kindly share your experiences & knowledges? So that I could possibly avoid some pitfalls & scammy things if there were.

Thanks
 
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ArtRyumin

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watching this thread. Not in Australia but your NZ neighbour and thinking the same. You need atleast 1mil over here to play in the multi family trust.

That's a great book suggestions, i'll also recommend this guy's podcast - very awesome topics covering all aspects of multifamily investig. It blows me away with what some of the guys are doing in US. With what i paid here for a lifestyle block i could well be on my way to passive incove for life if i put the same money into the US market rentals, atleast in terms of capital investment.

https://rodkhleif.com/

Check out hs podcast and free book. Also i'd keen on eye on Grant Cardon, Cardone capital. Looks like he's starting to go international.
 

Mckenzie

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watching this thread. Not in Australia but your NZ neighbour and thinking the same. You need atleast 1mil over here to play in the multi family trust.

That's a great book suggestions, i'll also recommend this guy's podcast - very awesome topics covering all aspects of multifamily investig. It blows me away with what some of the guys are doing in US. With what i paid here for a lifestyle block i could well be on my way to passive incove for life if i put the same money into the US market rentals, atleast in terms of capital investment.

https://rodkhleif.com/

Check out hs podcast and free book. Also i'd keen on eye on Grant Cardon, Cardone capital. Looks like he's starting to go international.
That book was suggested by @JScott, thanks JScott. I had a quick check on the biggerpockets forum, there're some Aussies there investing in the States, but I don't know if I can trust them. Besides, I feel more confidence in this FLF with MJ.
Yes, I feel your pains & the urges to use our hard earn money to work for us more effectively, to multiply them.
 

PRO2018

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I've salivated at this too, as the property prices in the US seem a fraction of what they are in Aus. But I've heard the percentage of tenants at the lower end of the market can end up being horror tenants, more so than in Aus making it extremely difficult managing it remotely. But this is only what I've heard and not sure what the reality is. It will definitely be worth it if such instances can be avoided.

Another matter would be taxation and foreign investment rules in the US. Would the income be taxed twice etc.

Watching this thread too.
 
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MTF

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How about investing in less expensive cities in Australia? I can imagine that major cities are super expensive, but there are probably dozens of smaller cities/towns that are much cheaper and there's much less competition (and no difficult issues to figure out like taxes for non-residents) than in the US.
 

PRO2018

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How about investing in less expensive cities in Australia? I can imagine that major cities are super expensive, but there are probably dozens of smaller cities/towns that are much cheaper and there's much less competition (and no difficult issues to figure out like taxes for non-residents) than in the US.

Not a bad suggestion, but it seems like there are investments in the US that are still a fraction of the cost of buying even in the less expensive cities in Australia. And the other issue of investing in the less expensive cities in Australia is capital growth can be extremely low, obviously major cities being the exception but entry price points are much higher. Also, keeping a constant flow of tenants to avoid prolonged periods of vacancy can be potentially more challenging in less expensive cities due to lower demand and lower population growth. Not that it's not possible but I can see the allure in being able to invest sub $100K and being able to generate positive cashflow from the get go in RE which I've not come across in Australia.
 

Mckenzie

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How about investing in less expensive cities in Australia? I can imagine that major cities are super expensive, but there are probably dozens of smaller cities/towns that are much cheaper and there's much less competition (and no difficult issues to figure out like taxes for non-residents) than in the US.
Yes MTF, that’s on the radar as well, and is part of my next move! I hope I’ve made a smarter decision this time.
 
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Mckenzie

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Another matter would be taxation and foreign investment rules in the US. Would the income be taxed twice etc.

Watching this thread too.
“Nature is written in mathematical language” Galileo Galilei
Yes, know your numbers before you do.
 

MTF

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@PRO2018, @Mckenzie - what are the taxes in Australia for real estate owners? I mean, property taxes and taxes you pay on the rental income. Also, are there different regulations for vacation rentals? I believe there are plenty of places in Australia with a year-round season where you can probably get a super high ROI right away.

Not that it's not possible but I can see the allure in being able to invest sub $100K and being able to generate positive cashflow from the get go in RE which I've not come across in Australia.

I understand, the United States is definitely great in this aspect. I guess that in Australia you probably have to get creative to invest sub $100k. Perhaps some small cabins, a campsite, or something like that.
 

Mckenzie

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@PRO2018, @Mckenzie - what are the taxes in Australia for real estate owners? I mean, property taxes and taxes you pay on the rental income. Also, are there different regulations for vacation rentals? I believe there are plenty of places in Australia with a year-round season where you can probably get a super high ROI right away.
.

@MTF, Taxes in Aus: it's a very big question. The answer is: it depends on how you set it up at the begining! There're so many variable factors to take into account to mention here.

Basically, Company tax rate is 30% and personal rate is on progressive scales (first $18,200 is free, then it goes up to 37% as your income goes up). But if you you hold it for more than 12 months you'll entitle for 50% Discount on CGT (Capital Gain Tax). And your Principle Place of Residence is non-taxable, free! (where you live/reside)....
 
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PRO2018

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@PRO2018, @Mckenzie - what are the taxes in Australia for real estate owners? I mean, property taxes and taxes you pay on the rental income. Also, are there different regulations for vacation rentals? I believe there are plenty of places in Australia with a year-round season where you can probably get a super high ROI right away.



I understand, the United States is definitely great in this aspect. I guess that in Australia you probably have to get creative to invest sub $100k. Perhaps some small cabins, a campsite, or something like that.

To add to @Mckenzie , and then there is negative gearing, where losses can be claimed against tax paid to offset losses etc on investment properties. But the opposition party is looking at tearing this down or at least limiting it.

Anyhow, it would be good to gain the knowledge in investing in the US RE market and figure out if it suits. It makes sense in terms of diversifying investments as we live in global economy.
 

Timmy C

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I have looked a bit on Real Estate, Property & Homes for Sale - realestate.com.au in the international section but there is so much to take into account, the exchange rate US is probably due for a crash in housing, not that i know shit about that market.

I think that would be the only time it would be viable.

My uncle lives in America I will contact him and get some insight.
 
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Timmy C

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For anyone in Australia looking to get a foothold into the property market i have found a forum for Australian property investors that i am sifting through, i am just getting a better understanding of the market.

here is the link if anyone is interested.

Search Results for Query: affordability | PropertyChat

From what i gather, there is some good opportunities in regional towns such as Ballarat, Bendigo etc.

Could be a good place to purchase something and positively gear and or move to and have low mortgage repayments and less stress to pursue your fast lane enterprise.

Also an option purchase something and have people rent a room from you to help cover the costs.
 
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