B
Bambi222
New Member
hello all,
I especially wanted to ask a question for Lmgrei and Oregon Woodsmoke as you two seem very experienced.
i am an australian and i own 2 properties here.
But i want to invest in the US because:
a) it's a truly great country
b) our dollar is at a historic high to the US dollar. I recall the A$ being only worth US50c but now it is surging towards parity. One day in the future we will be back to 50c sure as eggs.
Goal: to get positive cash-flow rental properties.
Where: this is the question. I have been up the West Coast and I like Oregon, too.
But I am ignorant of the ins and outs of the US taxation system.
Property taxes can be so high there as can insurance.
I need to know:
1) Taxes: Which jurisdictions am I likely to get low taxes, and ongoing low taxes? California... NO that state is broke and will soon have to raise taxes. But I don't know how to find this information out.
2) Rental market: Which jurisdictions will have good pool of respectable renters who won't trash the place - and which jurisdictions will have job growth and population growth?
3) Insurance costs: I want to avoid the hurricane areas as i read how hurricane insurance alone can cost over $2000. That's outrageous. In Australia I pay about $1000 per year for my TOTAL property insurance (on one property) including: fire damage, earthquakes and natural disasters, storm damage, tenant damage, vacancy, public liability up to $10m.
4) Rules and regulations. I have heard in some jurisdictions that before you can rent you have to fix the place to a certain standard. While I don't want to be a slum lord, that kind of rule could cost thousands. Can you warn me about these kind of pitfalls?
5) Building type: I'm looking for low maintenance. Repairs are what kills your profit over time. Preferably a unit block (no high rise, 2 stories maximum) with up to 8 units. Double brick, solid construction. No timber decking - concrete balconies only (which cannot get dry rot or termites).
Do you know if there is a place that will have that kind of garden unit low-rise development? No massive mansions for me... just lots of little low-maintenance living spaces that I can rent for cash flow and not be constantly fixing.
6) Should I make an LLC company in the states through which to own my property? I understand the US is a very litigious country and someone said for asset protection you should own property through a company. Is this the case? Is it the best vehicle?
Is that expensive? Are there yearly costs with that?
There has been a lot of press about repo auctions in the US and this could be good for me as I can stump up the 30% required for a foreign investor in cash, if the place is cheap enough. But I know I have to research county taxes etc. This will require an extended trip to the states where I will probably live in the back of a car while I thoroughly investigate. But I need to do a bit of the mental work here first.
Here in Australia, yields are better in small cities/large regional towns. I am thinking same would be true of the US. Also, tenants tend to be nicer in those places. Not too small though. Places with populations of between 200,000 and say 750,000 people I think would be ideal. What do you think?
It has to have a future though: a growth industry for example, and a growth trend.
Why would I look to the US instead of Australia:
We here are priced out of our own market. It's the most expensive real estate in the world. I am lucky to own two properties, one cheap, one average. Even with no mortgage, I still cannot afford to buy another one - in NSW I get killed with Land Tax.
This is a long post I know - hope you guys or another very knowledgeable poster can give some advice
I especially wanted to ask a question for Lmgrei and Oregon Woodsmoke as you two seem very experienced.
i am an australian and i own 2 properties here.
But i want to invest in the US because:
a) it's a truly great country
b) our dollar is at a historic high to the US dollar. I recall the A$ being only worth US50c but now it is surging towards parity. One day in the future we will be back to 50c sure as eggs.
Goal: to get positive cash-flow rental properties.
Where: this is the question. I have been up the West Coast and I like Oregon, too.
But I am ignorant of the ins and outs of the US taxation system.
Property taxes can be so high there as can insurance.
I need to know:
1) Taxes: Which jurisdictions am I likely to get low taxes, and ongoing low taxes? California... NO that state is broke and will soon have to raise taxes. But I don't know how to find this information out.
2) Rental market: Which jurisdictions will have good pool of respectable renters who won't trash the place - and which jurisdictions will have job growth and population growth?
3) Insurance costs: I want to avoid the hurricane areas as i read how hurricane insurance alone can cost over $2000. That's outrageous. In Australia I pay about $1000 per year for my TOTAL property insurance (on one property) including: fire damage, earthquakes and natural disasters, storm damage, tenant damage, vacancy, public liability up to $10m.
4) Rules and regulations. I have heard in some jurisdictions that before you can rent you have to fix the place to a certain standard. While I don't want to be a slum lord, that kind of rule could cost thousands. Can you warn me about these kind of pitfalls?
5) Building type: I'm looking for low maintenance. Repairs are what kills your profit over time. Preferably a unit block (no high rise, 2 stories maximum) with up to 8 units. Double brick, solid construction. No timber decking - concrete balconies only (which cannot get dry rot or termites).
Do you know if there is a place that will have that kind of garden unit low-rise development? No massive mansions for me... just lots of little low-maintenance living spaces that I can rent for cash flow and not be constantly fixing.
6) Should I make an LLC company in the states through which to own my property? I understand the US is a very litigious country and someone said for asset protection you should own property through a company. Is this the case? Is it the best vehicle?
Is that expensive? Are there yearly costs with that?
There has been a lot of press about repo auctions in the US and this could be good for me as I can stump up the 30% required for a foreign investor in cash, if the place is cheap enough. But I know I have to research county taxes etc. This will require an extended trip to the states where I will probably live in the back of a car while I thoroughly investigate. But I need to do a bit of the mental work here first.
Here in Australia, yields are better in small cities/large regional towns. I am thinking same would be true of the US. Also, tenants tend to be nicer in those places. Not too small though. Places with populations of between 200,000 and say 750,000 people I think would be ideal. What do you think?
It has to have a future though: a growth industry for example, and a growth trend.
Why would I look to the US instead of Australia:
We here are priced out of our own market. It's the most expensive real estate in the world. I am lucky to own two properties, one cheap, one average. Even with no mortgage, I still cannot afford to buy another one - in NSW I get killed with Land Tax.
This is a long post I know - hope you guys or another very knowledgeable poster can give some advice
