Investing in US Property
Jan 15th 2012, 8:03 pm
#31
Septicity
Joined: May 2004
Posts: 23,762
Re: Investing in US Property
If you qualify for the visa waiver program, you're unlikely to be issued a B-2 tourist visa. The VWP requires pre-clearance though ESTA.
But neither the B2 or VWP gives you any right of entry. Indeed, with the VWP you even sign away your rights to any judicial overview -- the decision on whether to admit you is solely with the inspector when you enter.
If you visit the US for two weeks every 5 years and have no criminal record, you're unlikely to be refused. However, if you decide to start living in your property for a significant number of months every year, you will eventually be turned away.
US immigration works like this:
Assume every alien is an intending immigrant. Unless they can prove they're not, refuse entry.
But neither the B2 or VWP gives you any right of entry. Indeed, with the VWP you even sign away your rights to any judicial overview -- the decision on whether to admit you is solely with the inspector when you enter.
If you visit the US for two weeks every 5 years and have no criminal record, you're unlikely to be refused. However, if you decide to start living in your property for a significant number of months every year, you will eventually be turned away.
US immigration works like this:
Assume every alien is an intending immigrant. Unless they can prove they're not, refuse entry.
Jan 15th 2012, 9:54 pm
#32
Forum Regular
Thread Starter
Joined: Sep 2009
Posts: 152
Re: Investing in US Property
If you qualify for the visa waiver program, you're unlikely to be issued a B-2 tourist visa. The VWP requires pre-clearance though ESTA.
But neither the B2 or VWP gives you any right of entry. Indeed, with the VWP you even sign away your rights to any judicial overview -- the decision on whether to admit you is solely with the inspector when you enter.
If you visit the US for two weeks every 5 years and have no criminal record, you're unlikely to be refused. However, if you decide to start living in your property for a significant number of months every year, you will eventually be turned away.
US immigration works like this:
Assume every alien is an intending immigrant. Unless they can prove they're not, refuse entry.
But neither the B2 or VWP gives you any right of entry. Indeed, with the VWP you even sign away your rights to any judicial overview -- the decision on whether to admit you is solely with the inspector when you enter.
If you visit the US for two weeks every 5 years and have no criminal record, you're unlikely to be refused. However, if you decide to start living in your property for a significant number of months every year, you will eventually be turned away.
US immigration works like this:
Assume every alien is an intending immigrant. Unless they can prove they're not, refuse entry.
The key thing seems to be getting a place in a rentable area that is likely to recover in 5-10 years. Say we bought somewhere for $50k, spent another $20k on renovating/legals. Then rented it out for $1200 per month (more than achievable), say worst case after all taxes/maintenance/management fees is $600 per month nett income, that is still alot better than what I am getting in a savings account. And you'd have an asset that will only improve in value, long term.
I think.
Jan 15th 2012, 10:18 pm
#33
Forum Regular
Joined: Jul 2006
Location: Western suburbs of Brisbane
Posts: 266
Re: Investing in US Property
$50k for a property sounds like a seriously dodgy neighbourhood and $1200 rental income per month. Wow...
Jan 15th 2012, 10:45 pm
#34
Democracy advocate
Joined: Mar 2006
Posts: 12,460
Re: Investing in US Property
Thanks for that. I'd have no intention of ever living in it, I'd do a rekky before buying and that would probably be my only trip to the US. If the numbers stack up well and you can get a reliable property manager, I can see it would work.
The key thing seems to be getting a place in a rentable area that is likely to recover in 5-10 years. Say we bought somewhere for $50k, spent another $20k on renovating/legals. Then rented it out for $1200 per month (more than achievable), say worst case after all taxes/maintenance/management fees is $600 per month nett income, that is still alot better than what I am getting in a savings account. And you'd have an asset that will only improve in value, long term.
I think.
The key thing seems to be getting a place in a rentable area that is likely to recover in 5-10 years. Say we bought somewhere for $50k, spent another $20k on renovating/legals. Then rented it out for $1200 per month (more than achievable), say worst case after all taxes/maintenance/management fees is $600 per month nett income, that is still alot better than what I am getting in a savings account. And you'd have an asset that will only improve in value, long term.
I think.
Jan 15th 2012, 11:33 pm
#35
Septicity
Joined: May 2004
Posts: 23,762
Re: Investing in US Property
Thanks for that. I'd have no intention of ever living in it, I'd do a rekky before buying and that would probably be my only trip to the US. If the numbers stack up well and you can get a reliable property manager, I can see it would work.
The key thing seems to be getting a place in a rentable area that is likely to recover in 5-10 years. Say we bought somewhere for $50k, spent another $20k on renovating/legals. Then rented it out for $1200 per month (more than achievable), say worst case after all taxes/maintenance/management fees is $600 per month nett income, that is still alot better than what I am getting in a savings account. And you'd have an asset that will only improve in value, long term.
I think.
The key thing seems to be getting a place in a rentable area that is likely to recover in 5-10 years. Say we bought somewhere for $50k, spent another $20k on renovating/legals. Then rented it out for $1200 per month (more than achievable), say worst case after all taxes/maintenance/management fees is $600 per month nett income, that is still alot better than what I am getting in a savings account. And you'd have an asset that will only improve in value, long term.
I think.
Here in metro Phoenix you'll certainly be able to pick up $50k properties. Most of them are either in a run-down part of town where you'll get the first month's rent of a tenant and nothing more till you evict them, or so far out that the whole subdivision will eventually bulldozed into the ground since the new homes were built on spec during the boom.
Also remember that, generally, homes are not built to the same standards as Europe. If you drove a mid-sized truck at a new build at moderate speed, you'd take the front wall, living room, family room, kitchen and back wall out before coming to rest in the pool at the back.
Last edited by fatbrit; Jan 15th 2012 at 11:57 pm.
Jan 16th 2012, 12:06 am
#36
Forum Regular
Thread Starter
Joined: Sep 2009
Posts: 152
Re: Investing in US Property
It's not whether you intend to stay but rather if the officer believes you might. Some strange cultural things come into play here like, for example, the fact the guy asking you the questions has probably never spent a month on holiday before in his life. Plan accordingly.
Here in metro Phoenix you'll certainly be able to pick up $50k properties. Most of them are either in a run-down part of town where you'll get the first month's rent of a tenant and nothing more till you evict them, or so far out that the whole subdivision will eventually bulldozed into the ground since the new homes were built on spec during the boom.
Also remember that, generally, homes are not built to the same standards as Europe. If you drove a mid-sized truck at a new build at moderate speed, you'd take the front wall, living room, family room, kitchen and back wall out before coming to rest in the pool at the back.
Here in metro Phoenix you'll certainly be able to pick up $50k properties. Most of them are either in a run-down part of town where you'll get the first month's rent of a tenant and nothing more till you evict them, or so far out that the whole subdivision will eventually bulldozed into the ground since the new homes were built on spec during the boom.
Also remember that, generally, homes are not built to the same standards as Europe. If you drove a mid-sized truck at a new build at moderate speed, you'd take the front wall, living room, family room, kitchen and back wall out before coming to rest in the pool at the back.
As we are all saying, it all has to be too good to be true.
Jan 16th 2012, 12:17 am
#37
Septicity
Joined: May 2004
Posts: 23,762
Re: Investing in US Property
Sure. I was looking at condos 3 blocks back from Miami beach (north). There's a 2 bedroom condo for $25k, in a 20 year old block. It's basic, but not run down. It has loads of inclusions, new flooring throughout. Looks like it just needs a lick of paint. Surely it being in a block you wouldn't have those structural worries so much and less maintenance? Then did a rental search for similar properties and they return $900 minimum.
As we are all saying, it all has to be too good to be true.
As we are all saying, it all has to be too good to be true.
Let's say there are 40 condos in a block, 30 of them abandoned. The maintenance, taxes and management of the common areas was originally $400/month. The ten remaining residents will now need to spend $1600/month to cover it otherwise the whole development will crash. Finding an abandoned condo in Florida is like looking for a chav in Basildon.
Jan 16th 2012, 12:33 am
#38
Forum Regular
Thread Starter
Joined: Sep 2009
Posts: 152
Re: Investing in US Property
Yeah, point taken. I had considered that, I have a friend in Florida that can check these things out.
To come back around to the original point of the thread, I guess my biggest fear is hearing loads of success stories in a few years time and thinking 'what if'.
Jan 16th 2012, 12:42 am
#39
Septicity
Joined: May 2004
Posts: 23,762
Re: Investing in US Property
Whether you're in a position to take or contribute to others' profits when you're half-a-world away from a place where you don't have any rights in and don't understand......is for you to decide.
I have a bit of dosh in real estate here in AZ these days. I wouldn't dream of trying my luck in Miami because I don't understand the market there. But here in Phoenix I'm pretty confident that the property I've picked up since the crash is going to give me a return eventually.
Jan 16th 2012, 12:58 am
#40
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Joined: Sep 2009
Posts: 152
Re: Investing in US Property
There's money to be made in real estate -- always has been, always will be.
Whether you're in a position to take or contribute to others' profits when you're half-a-world away from a place where you don't have any rights in and don't understand......is for you to decide.
I have a bit of dosh in real estate here in AZ these days. I wouldn't dream of trying my luck in Miami because I don't understand the market there. But here in Phoenix I'm pretty confident that the property I've picked up since the crash is going to give me a return eventually.
Whether you're in a position to take or contribute to others' profits when you're half-a-world away from a place where you don't have any rights in and don't understand......is for you to decide.
I have a bit of dosh in real estate here in AZ these days. I wouldn't dream of trying my luck in Miami because I don't understand the market there. But here in Phoenix I'm pretty confident that the property I've picked up since the crash is going to give me a return eventually.
Jan 16th 2012, 1:07 am
#41
Lost in BE Cyberspace
Joined: Mar 2003
Posts: 9,397
Re: Investing in US Property
Thanks for that. I'd have no intention of ever living in it, I'd do a rekky before buying and that would probably be my only trip to the US. If the numbers stack up well and you can get a reliable property manager, I can see it would work.
The key thing seems to be getting a place in a rentable area that is likely to recover in 5-10 years. Say we bought somewhere for $50k, spent another $20k on renovating/legals. Then rented it out for $1200 per month (more than achievable), say worst case after all taxes/maintenance/management fees is $600 per month nett income, that is still alot better than what I am getting in a savings account. And you'd have an asset that will only improve in value, long term.
I think.
The key thing seems to be getting a place in a rentable area that is likely to recover in 5-10 years. Say we bought somewhere for $50k, spent another $20k on renovating/legals. Then rented it out for $1200 per month (more than achievable), say worst case after all taxes/maintenance/management fees is $600 per month nett income, that is still alot better than what I am getting in a savings account. And you'd have an asset that will only improve in value, long term.
I think.
Jan 16th 2012, 4:47 am
#43
Just Joined
Joined: Jan 2012
Location: Noosa, Australia + Atlanta, GA
Posts: 6
Re: Investing in US Property
I have been investing in the U.S. for the past few years with mixed results. Initially started buying, rehabbing, flipping with a promoter in Las Vegas but at best broke even. Then started in Atlanta and did pretty well. Have now set up a JV with an Atlanta based broker doing the same thing selling to U.S. investors at wholesale prices (who are looking to buy discount properties around 15-20% below CURRENT retail and achieve good rental yields 15-20%). You have to question anyone claiming they are making 30-40%!
You can definitely make money in the U.S. right now but do your homework. Forget about Miami, Vegas or Phoenix as there is still more pain to be had here (you need markets with a large economy, stabilizing property values, growing population and stabilizing unemployment figures). Perhaps the MOST important thing is to get a CURRENT BPO (valuation) on any property before you buy. Forget about what it sold for in the market peak, focus on what it is worth today. Lastly get a great local Property Manager (sorry to state the obvious). Good luck.
You can definitely make money in the U.S. right now but do your homework. Forget about Miami, Vegas or Phoenix as there is still more pain to be had here (you need markets with a large economy, stabilizing property values, growing population and stabilizing unemployment figures). Perhaps the MOST important thing is to get a CURRENT BPO (valuation) on any property before you buy. Forget about what it sold for in the market peak, focus on what it is worth today. Lastly get a great local Property Manager (sorry to state the obvious). Good luck.
Jan 16th 2012, 6:53 am
#44
Forum Regular
Thread Starter
Joined: Sep 2009
Posts: 152
Re: Investing in US Property
I have been investing in the U.S. for the past few years with mixed results. Initially started buying, rehabbing, flipping with a promoter in Las Vegas but at best broke even. Then started in Atlanta and did pretty well. Have now set up a JV with an Atlanta based broker doing the same thing selling to U.S. investors at wholesale prices (who are looking to buy discount properties around 15-20% below CURRENT retail and achieve good rental yields 15-20%). You have to question anyone claiming they are making 30-40%!
You can definitely make money in the U.S. right now but do your homework. Forget about Miami, Vegas or Phoenix as there is still more pain to be had here (you need markets with a large economy, stabilizing property values, growing population and stabilizing unemployment figures). Perhaps the MOST important thing is to get a CURRENT BPO (valuation) on any property before you buy. Forget about what it sold for in the market peak, focus on what it is worth today. Lastly get a great local Property Manager (sorry to state the obvious). Good luck.
You can definitely make money in the U.S. right now but do your homework. Forget about Miami, Vegas or Phoenix as there is still more pain to be had here (you need markets with a large economy, stabilizing property values, growing population and stabilizing unemployment figures). Perhaps the MOST important thing is to get a CURRENT BPO (valuation) on any property before you buy. Forget about what it sold for in the market peak, focus on what it is worth today. Lastly get a great local Property Manager (sorry to state the obvious). Good luck.
Funnily enough Georgia is one of the other places I'm looking at. I have a friend who moved there 20 years ago, he happens to have a good friend who is a real estate agent.
I have been intouch with a property buying group based in Maroochydore, I had heard they have a good rep. The specialise in buying in Detroit! Surely you wouldn't go near the violent crime capital of the western world with a barge-pole?!
Jan 16th 2012, 7:12 am
#45
Just Joined
Joined: Jan 2012
Location: Noosa, Australia + Atlanta, GA
Posts: 6
Re: Investing in US Property
You are welcome. Havn't heard of the guys in Maroochydore but I can't believe anyone would be interested in buying in Detroit. Actually an Aussie guy got killed there last year fixing up one of his rental properties (got into a fight with a tenant). Obviously I have a vested interest in Atlanta (with my business located there) but it is a solid market. Not sure if I am allowed to give you my business website to check out (read something in the rules of the forum) but we have some great properties at wholesale prices, fully rehabbed, tenanted, insured and managed giving strong rental returns.
Even if you are not in the market to buy we can give you some great info. on Atlanta market and how foreigners can invest in the U.S. (best structure to use, introductions to good accountants, pitfalls etc.).
Even if you are not in the market to buy we can give you some great info. on Atlanta market and how foreigners can invest in the U.S. (best structure to use, introductions to good accountants, pitfalls etc.).