# Buying property in USA non-US resident



## Seneca60BC (4 October 2008)

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


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## Dowdy (22 February 2009)

*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


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## nunthewiser (22 February 2009)

*Re: Buying property in USA non US resident*

The White house up for sale yet?


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## tech/a (22 February 2009)

*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?


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## nunthewiser (22 February 2009)

*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)


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## robots (22 February 2009)

*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


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## grace (22 February 2009)

*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.


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## condog (3 December 2009)

*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...


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## vselleck (11 January 2010)

*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


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## vselleck (11 January 2010)

*Re: Buying property in USA non US resident*



condog said:


> 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...




Hi condog

The forum you suggested is great but the link you supplied is incorrect. Should be: http://www.propertyinvesting.com/forums/property-investing/overseas-deals

Many thanks

Vincent


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## oliboy (17 January 2010)

*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





vselleck said:


> 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.
> 
> ...


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## vselleck (26 April 2010)

*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


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## aussie john (2 July 2010)

*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.


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## bellenuit (3 July 2010)

*Re: Buying property in USA non US resident*



aussie john said:


> 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.




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.


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## evo1965 (13 October 2010)

*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.


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## nukz (13 October 2010)

*Re: Buying property in USA non US resident*



evo1965 said:


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




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


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## legend1010 (14 October 2010)

*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


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## omeo71 (4 November 2010)

*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


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## prawn_86 (4 November 2010)

*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


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## roland (4 November 2010)

*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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## Judepaul (16 November 2010)

*Re: Buying property in USA non US resident*

Hi all,
 We recently purchased two properties in Florida one for 20K and the other for 30K have had to spend 3 K to get them up to scratch but they are both in great nick .In Florida the stove and washing machine and dryer come with the rental so have had to purchase them. I bought the properties through a LLC which we set up there  for ($800 A)and have made contact with a lawyer and accountant for contract and tax return advice. You really need good people on the ground over there who can give you an understanding of how things work. We also set up a bank account in USA but their banking is very different from here!!! Have an offer in on a short sale for a 3 bdrm house in top condition ( needs A/C ) for $30K waiting for the reply at present. You cant buy anything here for that price . We are doing this on a trial basis at the moment to see how it all  goes . Whilst over there i did meet people who were paying off morgages of 500K on property worth 300K , they have done it hard and continue to do so .Hope this helps
cheers Jude


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## skc (16 November 2010)

*Re: Buying property in USA non US resident*



Judepaul said:


> Hi all,
> We recently purchased two properties in Florida one for 20K and the other for 30K have had to spend 3 K to get them up to scratch but they are both in great nick .In Florida the stove and washing machine and dryer come with the rental so have had to purchase them. I bought the properties through a LLC which we set up there  for ($800 A)and have made contact with a lawyer and accountant for contract and tax return advice. You really need good people on the ground over there who can give you an understanding of how things work. We also set up a bank account in USA but their banking is very different from here!!! Have an offer in on a short sale for a 3 bdrm house in top condition ( needs A/C ) for $30K waiting for the reply at present. You cant buy anything here for that price . We are doing this on a trial basis at the moment to see how it all  goes . Whilst over there i did meet people who were paying off morgages of 500K on property worth 300K , they have done it hard and continue to do so .Hope this helps
> cheers Jude




I am interested to see what kind of properties $30K can buy you in Florida. Do you have a link to some photos (of what you bought or similar)?

BTW, are you leaving your property vacant or rented out? If you can't find tenants, would you consider letting someone live in it for free or some nominal amount? Obviously to some decent folks who's fallen on hard times, but hopefully the act will help them get back on their feet as well as help with the upkeep of your property?


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## johno70 (19 November 2010)

*Re: Buying property in USA non US resident*

Dollar Property Investments - DPI

Just a warning for investors looking into the US market.

I have recently deat with a UK company called Dollar Property Investments. There are sourcing and selling cheap properties in ROchester, Buffalo and Detroit. With the prices you pay do not expect perfection. The house I recently purchaed was advertised as above standard, nothing needed to be done. Counds like a good buy. Untill the city wanted to inspect it due to the sale. I received 35 violations and it cost around $5k to fix it all. This house was inspected and clasified as excelant. I would be very cautious dealing with Martin from DPI. All talk and will not back up his statements.
.


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## LTD (21 November 2010)

*Re: Buying property in USA non US resident*

I am not an expert in this field, as some here seem to be, and so I address them with my query.
I noted that a Bill was passed shortly after the GFC which from my reading would made it very difficult to take money out of the US...without paying exorbitant taxes....
Has anyone actually made a profit, sold the property and moved funds back to AU? ...
Making money on selling property to Aussies could be lucrative but how easy is it to realise the gains?
I could be off track ..but would also want to know the tax implications and any hurdles to bringing home anticipated gains before buying up the bargains.


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## shanti (30 November 2010)

*Re: Buying property in USA non US resident*

Aussiejohn, did you use Buyers Agents or went alone? 
I am also thinking of giving it a go at US, heard about myUSAproperty agents, also cashflowgold from Detroit (Detroit sounds scary tho). Michael and Bronwyn from Atlanta seem great but their properties recently around $70K. I would very much appreciate advice, thank you
 shanti


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## Zita (6 December 2010)

*Re: Buying property in USA non US resident*



Judepaul said:


> Hi all,
> We recently purchased two properties in Florida one for 20K and the other for 30K have had to spend 3 K to get them up to scratch but they are both in great nick .In Florida the stove and washing machine and dryer come with the rental so have had to purchase them. I bought the properties through a LLC which we set up there  for ($800 A)and have made contact with a lawyer and accountant for contract and tax return advice. You really need good people on the ground over there who can give you an understanding of how things work. We also set up a bank account in USA but their banking is very different from here!!! Have an offer in on a short sale for a 3 bdrm house in top condition ( needs A/C ) for $30K waiting for the reply at present. You cant buy anything here for that price . We are doing this on a trial basis at the moment to see how it all  goes . Whilst over there i did meet people who were paying off morgages of 500K on property worth 300K , they have done it hard and continue to do so .Hope this helps
> cheers Jude




Hi Jude,

Thank you for your post.

My partner and I are heasing over to Miami in March 2011, and we need to get incontatc we a good lawyer and accountant as soon as possible. As we need to do the necessary such as open an LLC, open a bank account etc etc.

With your experience and contacts, can you please advice us of some details for the appropiate professionals such as accountants and lawyers you can recommend?

Thank you in advance!

Zita


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## prawn_86 (6 December 2010)

*Re: Buying property in USA non US resident*

If anyone is looking at buying property o/s feel free to contact me and i can help with the FX side of things at much better rates than the bank.

Thanks


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## MaxInvestor (31 January 2011)

*Re: Buying property in USA non US resident*



skc said:


> I am interested to see what kind of properties $30K can buy you in Florida. Do you have a link to some photos (of what you bought or similar)?
> 
> BTW, are you leaving your property vacant or rented out? If you can't find tenants, would you consider letting someone live in it for free or some nominal amount? Obviously to some decent folks who's fallen on hard times, but hopefully the act will help them get back on their feet as well as help with the upkeep of your property?




I would be also interested to see what you bought for these prices! That seems to be really cheap. I have been looking into properties in Florida last year, and they have been usually over $50K but also what made it really hard to cashflow was the expensive property insurance (due to the hurricanes etc.).
In the end I found pretty cool blog of a guy who bought a property in USA:
www.buyingpropertyinusa.net and even though he doesn't provide any services, I actually liked his ideas and bought a condo in Las Vegas, NV for little less than $40K. I got a property manager and rented it and so far it's going well! I am thinking now about buying another property this year..


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## pilots (31 January 2011)

*Re: Buying property in USA non US resident*



Judepaul said:


> Hi all,
> We recently purchased two properties in Florida one for 20K and the other for 30K have had to spend 3 K to get them up to scratch but they are both in great nick .In Florida the stove and washing machine and dryer come with the rental so have had to purchase them. I bought the properties through a LLC which we set up there  for ($800 A)and have made contact with a lawyer and accountant for contract and tax return advice. You really need good people on the ground over there who can give you an understanding of how things work. We also set up a bank account in USA but their banking is very different from here!!! Have an offer in on a short sale for a 3 bdrm house in top condition ( needs A/C ) for $30K waiting for the reply at present. You cant buy anything here for that price . We are doing this on a trial basis at the moment to see how it all  goes . Whilst over there i did meet people who were paying off morgages of 500K on property worth 300K , they have done it hard and continue to do so .Hope this helps
> cheers Jude




We looked at this two years ago, alls well until you try to take the money out of the USA, the tax was going to to be massive on the profit, don't bring it back here as you will be taxed here as well. When its to good to be true, you know the rest of the story.


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## MasterG (1 February 2011)

*Re: Buying property in USA non US resident*

I'm tossing-up the idea of buying property as well..

I recently got a package at work and have about $25K left on my mortgage..

I rang the bank recently about how much they'd lend mebased on my income and say renting out a property at around $1200 per month and I'd get close to $500,000

Anyway, I'm looking at purchasing in Texas, properties are quite well priced and based on their commodities seem like a reasonable part of America to receive growth, not unlike Australia..

Just a few questions:

1. What are their taxes like, $10grand a year is quite alot, are these tax deductible?
2. How does resale work on the investment, I guess they tax you to the eyeball on their capital gains taxese and whatnot?

I mean people say I should just buy an investment property here in Melbourne, but I'm only looking to spend about $400K and all you can buy with that is some shoebox in Croydon, where in somewhere like Dallas you can get a 3-4 bedroom HOME close to city centre in a more blue chip type area.


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## prawn_86 (1 February 2011)

*Re: Buying property in USA non US resident*

Anyone who is buying property in the US, or overseas, should PM me for details with regards to remitting the funds overseas as i can help get a much better exchange rate than what the bank will offer


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## Barrockan (27 February 2011)

*Re: Buying property in USA non US resident*

I have just done a considerable amount of research on US markets and I would be careful in buying in areas like Arizona, Le Vagas, Texas ect. These areas are still depreciating. Miami has a forecast of 25% further depreciation.

I found a good web site from a company in Sydney that shows that Memphis TN and Cleveland OH are appreciating now. Memphis has a forecast of 24% by 2014.

You can find the stats on www.usprime.com.au

They dont charge you thousands in fees the way the other outfits do either


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## lazysnail (11 March 2011)

*Re: Buying property in USA non US resident*

No one seems to talk about NY...I saw an apartment online near Columbia uni and looked quite close to manhattan on the map for around 500k for 3 br...I thought that's quite reasonable compare to Sydney where you only get 1 br for that price...

How much can you rent out a property like that for in US? How much would the fees and charges be annually?

I'm also interested in going over in April 2011 to inspect.


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## JTLP (12 March 2011)

*Re: Buying property in USA non US resident*

What's with the influx of one time posters?

Anyway - people need to look at the company names - don't they make you raise an eyebrow?

Ahh well - maybe it's just me...


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## Zita (29 March 2011)

*Re: Buying property in USA non US resident*



prawn_86 said:


> If anyone is looking at buying property o/s feel free to contact me and i can help with the FX side of things at much better rates than the bank.
> 
> Thanks




Hi there;

Can you please contact me Re: FX rates  - zitaflorence@gmail.com

Thanks!


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## Smartinvester (17 July 2011)

*Just make sure you take out title insurance and this will cover this concern.*



roland said:


> 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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## Smartinvester (17 July 2011)

*Re: Buying property in USA non US resident*

Just make sure you take out title insurance and this will overcome this concern.
US property market is HOT right now and there are some excellent opportunities in the Atlanta area.


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## Glen48 (17 July 2011)

*Re: Buying property in USA non US resident*

Any  reason why USA there are a lot of other countries which can sell you a cheap house and land.. Here you can buy a 3 bd house and land for 50K AUD.
If you are looking for a cheap USA house  wait until the market bottoms,
If you want a house as security so you can leave OZ and still Western life style do some looking around in S. America.


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## MrGu (26 August 2011)

*Re: Buying property in USA non US resident*

Hi All,

I recently purchased a property in the US (Orlando, Florida) after 3 visits to the states. Don't consider buying online, it's nothing like the photos. Neighbourhood is all important too. We found someone on the ground that we could trust. She does it all as she lives nearby. The neighbourhood is SouthChase and go through Venture Realty. I don't have any commercial relationship with them, just sharing my experience.

Was rented immediately. Don't pay for anything. The seller pays. The agents and realtors happy to drive you around. You can bargain on short sales even though everything looks rock bottom. You need inspection reports but be wary as the majority just tick boxes on a form without really investigating.There are some traps around but the above neighbourhood is great value (mainly upper level hispanic families). Stay away from Meadow Woods. 

Good luck people, this is a great investment if you have SMSF. And nearby Disney, Universal and Sea World are just some of the things that will keep the local community going strong.

all the best,
GH.


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## DavidGKarp (4 November 2011)

*Re: Buying property in USA non US resident*

I would respond by saying that it is relatively easy to buy property in the US.  You don’t need to be American, nor do you really need to travel there.  But what you do need is a good Broker/Realtor located in the US that represents you.

I am an Australian, living and working in the US and am a licensed Broker and Realtor.  I am also a member of the Realtor Association, and as such, am held to a very high ethical standard.  I cannot buy property for myself and immediately flip it to an unsuspecting Aussie buyer at a higher price.  What I can do is find the best possible properties (in good areas) where there is strong rental demand (usually driven by good school districts).  I review the properties, take HD quality video of the properties and post to YouTube.  Then I work with the buyer to craft an offer and take the whole process through the due diligence phase through to contract closing.  After the property closes we then hand the property over to a reputable management company to run no the buyer’s behalf with proper financial accounting.  All of this is done for the buyer via email/phone and video conferencing via Skype.  My commission comes out of the seller’s proceeds from the sale, so there is no cost to the buyer, for me to fully represent them in the transaction.  

There are many positives to investing in the US property market.  The first and foremost is the exchange rate between Australia and the US.  The buying power of this alone is phenomenal and continues to remain strong.  We are also seeing increasing rental demand (and therefore rising rental rates), which is hardly surprising with the number of properties going through short sales and foreclosures.  

US markets are very localized in nature and cannot be considered as a whole.  For example, properties in the outlying suburbs of Washington DC never dropped in price and continue to see strong demand and high prices.  Some markets in Florida, Nevada and Texas remain decimated and will do so for a very long time, as there are few external forces helping those markets.  These markets would be well to steer clear of.  Then there are some markets that did not have the crazy run up in prices around 2006 and remained relatively stable.  These markets have good local employment (from a variety of industries), reasonable property prices and great work/life balances - as a result, we are seeing strong increases in population growth (American’s move frequently!) and increasing rental demand.


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## Happy (4 November 2011)

No first hand experience but one who lived and owned property spoke about peculiar responsibilities of US owners.

Thing that scared me most was ANNUAL TAX plus service charges. 
Here in Australia tax is on purchase, sale and has payments regarding services you use or can use.

Their annual tax is on property and because I wasn’t too interested, I forgot what was basis of the tax. Was it value, replacement value or level of tax was set by local authority no idea.
What I was told that people madly renovated, re-painted, and changed things because all dockets could be presented to lower the tax.
Comment was that there were not many run down properties, because of all the money that otherwise would have to be paid anyway.

Again no idea if it was like in Australia or any other method of tax claim, but it was quite an industry not to mention that even low level of fraud was rife, known by authorities but blind-eyed to some extent.

Don’t have currently contact, so cannot ask for details.

Ah, and big welcome to all new posters!


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## DavidGKarp (4 November 2011)

The property tax paid by property owners in the US varies by County to County within each state, so there is no average rate to quote.  Best idea is to consider a city/market then research the counties that comprise that city.  For example, I live in Charlotte, North Carolina and there are approximately 13 counties that make up the Charlotte metro area and surrounding suburbs.  The predominant county is Mecklenburg, where the property tax rate is $1.297 per $100 of property valuation.  The county I live in is Union county, where the property tax rate is $0.74 per $100 of property valuation.  Interestingly, the school district in Union is considered far more highly than that for Mecklenburg.  So, as people move to Charlotte, they are picking Union County over Mecklenburg County for both the quality of the schools and the considerably cheaper property taxes.

So, in North Carolina, the property tax bills are sent out September 1st and are paid in one lump sum for that entire year. Interestingly, the County files a tax lien on the property on January 1st of that year.  This lien takes precedence over all other liens, should the owner not pay.

The property valuation is done by the County based on size of the property, size of the house, building material and any additions/modifications to the house.  With the property values declining, some people are contesting the tax value the County is placing on their property.

Property taxes are tax deductible at tax time.

Hope that helps.

David Karp


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## DavidGKarp (4 November 2011)

I should have added that there are taxes on the income earned from renting out the investment property, but like Australia, there are deductions to offset that.  Best to speak with a tax specialist here.  I know of a few good ones.

Regards
David Karp
davidkarp@walkaboutpropertiesusa.com


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## Happy (4 November 2011)

DavidGKarp said:


> ...
> Property taxes are tax deductible at tax time.
> 
> Hope that helps.
> ...





Was it then taken into account that somebody painted external walls and purchase price of paint and brushes were deducted from tax, or other method of tax deduction was used?

Suppose this varies state by state and county by county too?


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## wintech (4 November 2011)

*Property tax / annual rates*

I was under the understanding (probably mistakenly) that the property tax in the states is similar to rates that dwelling owners pay in Australia. The only difference being that the USA Gvt call a spade a spade whereas Oz Gvt flirts with semantics. Anything that the Gvt takes from a citizen to fund services is a tax, call it what you will - levy,duty,fees, etc all taxes.


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## DavidGKarp (4 November 2011)

Happy said:


> Was it then taken into account that somebody painted external walls and purchase price of paint and brushes were deducted from tax, or other method of tax deduction was used?
> 
> Suppose this varies state by state and county by county too?




General house maintenance and repairs and upgrades are not tax deductible.  There are some types of upgrades that are, for example where the heating/cooling system is upgraded from some old system to a fuel efficient one, or putting solar panels on.  And yes, that taxes do vary county by county and state to state.

Regards


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## Julia (4 November 2011)

David, with apologies for somewhat deviating from the thread content, and no obligation for you to answer, of course, could you say how you as an Australian came to be engaged in your present occupation?


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## DavidGKarp (5 November 2011)

Julia - I started my business to help Australian's buy US investment property earlier this year.  I had obtained my real estate broker’s license in the Carolina's last year.  

I thought that Australians would be more comfortable working with an Australian who is physically located here in the US.   I have also lived and worked throughout much of the States, so I feel that I can give first hand advise on good areas to consider.  

I had been buying and selling residential property, both to live in and for investment, for over 20 years now.    My career in Australia (civil engineer - worked on the Shangri La Hotel in Sydney and sections of the new Hume Highway south of Goulburn) started my interest in real estate and construction.  Then coming to the States in 1995 to work in telecommunications (managing the acquisition and building of cell sites for Bell South and Sprint) further developed that interest in real estate.  I have held a number of other positions with Jones Lang LaSalle, the American Red Cross and currently with Bank of America - all roles that involve real estate in some form or another.

I hope that helps explain the path taken.

Regards
David Karp


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## Joe Blow (5 November 2011)

Hi David, just a reminder that your contact details can only be posted in your signature. We do not allow ASF members to link to their website in posts on the forums as spam is a huge problem for us.

You can edit your signature here: https://www.aussiestockforums.com/account/signature


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## DavidGKarp (5 November 2011)

Thanks Joe for the reminder.  I have taken care of that now.


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## Glen48 (6 November 2011)

It's kind of a hard to have a market
when no one knows who really owns
what. 

And that's where were are now
in the US real estate market. 

Video:

http://www.realecontv.com/page/5548.html


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## Happy (7 November 2011)

I would still be hesitant to get a property so far away, where any and every little thing has to be done by hired person.

Know fellow from Victoria that had property in QLD and one of more sticky issues was 3-monthly or so plumber charge for washers replacement, with roughly $30 or $40 labour component.
Not much we might say, but it was almost like clockwork.

He tried to argue that, why his washers last for 3 to 5 years, yet in rental property washers are leaking so quickly.
In the end did not get anywhere, there were other issues like walls repair and painting, revolving tenants, carpet problems and on and on.

I know not all distant location rental properties give the same problems, but some do.


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## Glen48 (7 November 2011)

A couple of trips to  USA and connecting flights , lost work , jet lag etc would knock a  lot of gloss of a bargain in a market that has not bottomed and more importantly who knows if it will rise again.


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## tbrittin (9 November 2011)

Great topic and there are lots of good questions here.  We have been helping Australians purchase property in Michigan for over a year now.  We certainly have heard our share of horror stories from various Aussies who have gone about purchasing without being fully informed and really got in over their head.  

Before you decide to purchase a property in the US, you need to do your homework and work with an experienced team on the ground.  This is vitally important because you are investing from so far away.  

Because I have seen so many go about it the wrong way, we have taken an active approach to try and educate our clients on how to purchase property in the US the right way.  We have a myriad of information on our website and our blog to help you with your investing activities in the US.  In fact, we're in the process of publishing a series of blog posts talking about how to purchase properties in the US the right way.  You can access these posts on our blog from the link in my signature.  

If you have specific questions about purchasing property in the US, I would be glad to help...just PM or email me.

Cheers!


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## ooj100 (16 November 2011)

Seneca60BC said:


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




It is definitely possible. I bought a house in Illinois State for a few thousand as a long term bet on the housing markets have. Drawbacks are same as owning property in any overseas country. State, county taxes are a little high for my comfort though...


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## Bill M (10 January 2012)

I am not following the thread but thought I would mention what I saw on the Today Tonight program this evening. There are quite a number of Aussies buying property over there and some buying 40 to 50 houses and in some cases whole streets. 42% and 48% returns in rents alone for some of the properties.

I just wish I had the nerve and time to investigate this. It sounds like good investing. From the program:
---
_The total cost was $25,000. The rent is $900 a month. That’s a return is 42.3 per cent.

"Prices in the US at the moment are down about two thirds in some of the really bad states, and heading lower," McKnight said._
---

Link to program here:http://au.news.yahoo.com/today-tonight/consumer/article/-/12548104/buying-up-the-usa


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## Julia (10 January 2012)

Bill, I cannot now remember enough to find a link for you, but a few months ago there was a very interesting article I read (probably in The Australian or its magazine) which laid out some of the horrible problems of being a landlord in the US.  I think it was mostly with reference to Detroit and perhaps the horror that was described isn't replicated in other areas.

However, the main reference was to federal laws about evicting tenants, no matter what they do, regardless of their not paying rent etc., and I remember thinking, hell, I wouldn't be in that for anything, despite the potential capital gains.


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## Bill M (10 January 2012)

Julia said:


> However, the main reference was to federal laws about evicting tenants, no matter what they do, regardless of their not paying rent etc., and I remember thinking, hell, I wouldn't be in that for anything, despite the potential capital gains.




That's why I said I don't have the nerve. I also heard of a case of an Australian owning an apartment block. Apparently he was a very good landlord, so the tenants said. He was friendly and fixed what needed fixing. One day a car pulled up beside him and the people inside opened fire and shot him dead. I don't have the links but I remember the story well, early last year I think.

Edit: I Just found the link. Respect to the family.
http://www.theage.com.au/national/aussie-landlord-believed-in-the-american-dream-20110516-1ep6q.html


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## Glen48 (11 January 2012)

US House prices still have 20-30% to fall, some counties are pulling out street light to save money which means go out at night so less spending in shops etc all you can hope for is a good return until the house is destroyed'


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## petertasman (24 January 2012)

*Re: Buying property in USA non US resident*

The real question is not should you invest in the USA in places like Phoenix. However, how do you borrow in the USA.



vselleck said:


> 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.
> 
> ...


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## Snowwhite2012 (18 October 2012)

*Re: Buying property in USA non US resident*



condog said:


> 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...




The link doesnt; work.


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## investorsam (23 February 2013)

*Re: Buying property in USA non US resident*



prawn_86 said:


> If anyone is looking at buying property o/s feel free to contact me and i can help with the FX side of things at much better rates than the bank.
> 
> Thanks




 Hi &  thanks -  info. on obtaining better rates to  USD [from AUD] would be most appreciated .. regards- I.S.


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## investorsam (23 February 2013)

DavidGKarp said:


> The property tax paid by property owners in the US varies by County to County within each state, so there is no average rate to quote.  Best idea is to consider a city/market then research the counties that comprise that city.  For example, I live in Charlotte, North Carolina and there are approximately 13 counties that make up the Charlotte metro area and surrounding suburbs.  The predominant county is Mecklenburg, where the property tax rate is $1.297 per $100 of property valuation.  The county I live in is Union county, where the property tax rate is $0.74 per $100 of property valuation.  Interestingly, the school district in Union is considered far more highly than that for Mecklenburg.  So, as people move to Charlotte, they are picking Union County over Mecklenburg County for both the quality of the schools and the considerably cheaper property taxes.
> 
> So, in North Carolina, the property tax bills are sent out September 1st and are paid in one lump sum for that entire year. Interestingly, the County files a tax lien on the property on January 1st of that year.  This lien takes precedence over all other liens, should the owner not pay.
> 
> ...





--------------------------------------------------------------------------------------------------------------------------

Questions re Tax Burden at Federal , State and County Levels re USA Investment 

Its been several years now since the sub-prime stock market crash {circa 2008/} yet many  Australia's  interested to invest in a 'second wave' of USA  investment ,   still dont seem to know , or discuss or appear  to acknowledge  the local tax burden facing many property holders across the USA.
From what i know, NY State, New Jersey , Texas, California & Florida are 'outrageous' [compared to Australia]
re their levels of county tax   IE County tax in these states is paying for the education system , teachers wages, police wages , and  the burden is so severe in many localles that people are selling their homes still, because they have been greiving their taxes and cannot afford annual property taxes of [for instance  $15,000.00 tax per annum on a  $500,000.00 home in Suffolk county - NY - USA.

I have heard stories of people being so  greived  by their annual taxation bills relateing to home ownership at a federal , state and county level in the USA of still faceing the very real possibility of being forced to sell- up to off-load their property & re-locate to such states as Tennessee [on account of taxation].

I welcome all comments  - regards investorsam


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## investorsam (23 February 2013)

THINK TWICE BEFORE BUYING PROPERTY IN THE USA 

From the online tax story :- 
Who Pays America's Highest Property Taxes?
Forbes.com staff, 01.23.09, 02:00 PM EST


The rub: Local governments need tax revenue for everything from school district expenses and libraries to police, fire and ambulatory services. That means if tax revenue falls too much, local property tax rates are often raised to account for the budget deficit that results.

As a result of this specter, some are crying foul. Angry homeowners, whose tax bills are rising despite dropping home prices, have prompted lawmakers in New York, Georgia, Oklahoma and Wyoming to consider proposals to cap property taxes as a percentage of a home's value.

"People are unhappy that their bills are increasing," says Kim Rueben, public finance economist at the Urban Institute. "Now that values are falling, they want their bills to fall."












investorsam said:


> --------------------------------------------------------------------------------------------------------------------------
> 
> Questions re Tax Burden at Federal , State and County Levels re USA Investment
> 
> ...


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## howmanyru (23 February 2013)

_The total cost was $25,000. The rent is $900 a month. That’s a return is 42.3 per cent.

Who the heck would rent at $900 a month if you could by the house for $25K?_


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## julialnguyen (7 August 2013)

*US property*

Hi there,

I'm looking for people that recently purchased properties from the US through Jeff Lewis, Ronald Blum or Mike Pool. Please get in touch with me and share your experience because personally I have really bad experience dealing with them and I want to know if anyone out there is going through the same thing or I'm the only exception. Please contact me at julia@legians.com or 0412 225 036. Thanks


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