Smudger82

Has anyone ventured in to this? I was going to put this in the US forum, but I'd like to hear from anyone from Oz who has invested in a foreclosed/short sell property.

I looked at it a couple of years ago but didn't do it as it all seemed too good to be true. But I've come back around to looking at it. $60k for a decent 4 bedroom home in a state with low crime can't be bad? With a rent that generates 40% ROI. So, does anyone have any horror or success stories?

PaulandNic

I put a phone system in a company on the Gold Coast that specialized in buying US property.

I was there for the day and heard em on the phone giving all the waffle about exchange rates etc.

I spoke to the boss at the end of the day and he reckoned there was BIG money to be made if you was willing to buy and sell up in 5 years!

I installed the phone system about 6 months ago. I drove past the place yesterday and the offices are for let.

Smudger82

Funnily enough I did graphic design for a similar company a couple of years back, they are still going though. I'd say that there are a lot of fly-by-nights trying to hop on to the band wagon.

PaulandNic

Yeah reckon so ...

PunkDebutante

We have a few US properties and have had them for years. The rental return isn't that brilliant unless you are in an area with huge amounts of foreclosures and people kicked out of their homes needing places to stay.

Smudger82

Which areas do you own properties in?

PunkDebutante

Florida and North Carolina

sonlymewalter

Can anyone buy property in USA without having the right to live there

What about selling the property how does the Tax work?

PunkDebutante

That I don't know. I know our US accountant had the properties put into my name as I am a US citizen (as well as British) and I have to file US taxes every year regardless.

sonlymewalter

Being a US citizen makes sense you buying US property but not sure if it's possible for anyone without the right to live in US

Also...there's management costs to keep the place running. Presume management and maintenance fees need paying? All sounds good at face value but not sure of the practicalities

PunkDebutante

It isn't easy. And property management fees are quite high and it is getting very difficult to get homeowners insurance in many places. Plus comes the added "benefit" of having to file US taxes for the remainder of your life (or as long as you continue to hold a taxpayer ID and have monetary interest in the US).

I know some other Brits who have homes in the US and they rent them out but can only use them for 90 days a year.

sonlymewalter

yep....not as easy as it all sounds.....

JAJ

Ask yourself if it's such a good investment, why aren't Americans buying it? In fact, why would the seller want to part with such an investment in the first place?

sonlymewalter

Could be economics and beneficial exchange rates? Could be American residents aren't buying due to struggling economy and high unemployement? Could be lots are selling their investments to consolidate their debts? There area miriad of reasons why it could be more beneficial for Aussies to buy in the USA market

From what I can gather a lot of the Asian (Chinese et al) community have brought into the Gold Coast as investment property even though they don't live in Aus. It's not uncommon for overseas residents to be interested for many reasons, whether it's viable or possible (visa restrictions / hom buying restrictions etc)is another story and as per the above questions.

roaringmouse

Perhaps because it's a foreclosed property due to someone losing their job and not being able to pay the mortgage? Probably a good reason that they no longer own the property I would have thought?