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Australians Buying Up Cheap US Property

melpax From Australia, joined Apr 2005, 1419 posts, RR: 1
Posted (3 years 2 months 2 weeks 5 days 15 hours ago) and read 2506 times:

Australian investors locked out of the expensive property market here are starting to buy cheap property in the US. As a guide, an average home in suburban Melborurne is now around AUD$600,000, depending on the suburb. Several firms here are now assisting people to buy homes in the US, but it may be a risky move if you don't do your work beforehand....

http://www.theage.com.au/victoria/as...-american-dream-20100305-powo.html

Will work for beer

16 replies: All unread, jump to last

BMI727 From United States of America, joined Feb 2009, 14342 posts, RR: 26
Reply 1, posted (3 years 2 months 2 weeks 5 days 15 hours ago) and read 2499 times:

Not a bad idea. Some Americans, retirees in particular, have taken to buying homes in Mexico or Central America where they can get much more bang for their buck.

Why do Aerospace Engineering students have to turn things in on time?

kevinl1011 From United States of America, joined Mar 2005, 2964 posts, RR: 51
Reply 2, posted (3 years 2 months 2 weeks 5 days 15 hours ago) and read 2486 times:

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Whoa now. Just because the monetary exchange is in their favor doesn't make it "cheap". Please refer to it as "under market value" or "attractively priced" property. We still have our pride you know for christs sake.

474218, Carl, You will be missed.

bill142 From Australia, joined Aug 2004, 8320 posts, RR: 9
Reply 3, posted (3 years 2 months 2 weeks 5 days 14 hours ago) and read 2464 times:

Thing is you don't even need significant fluctuations in property prices to make this. Simply the US dollar to strengthen against the Australian dollar, which it has, can and will do. I've thought about purchasing property in the US but I haven't got much beyond that.

Springbok747 From Australia, joined Nov 2004, 4387 posts, RR: 13
Reply 4, posted (3 years 2 months 2 weeks 5 days 13 hours ago) and read 2442 times:

Can foreigners actually buy property in the US? Don't you have to be a resident to buy property?

אני תומך בישראל

kiwiandrew From New Zealand, joined Jun 2005, 8435 posts, RR: 14
Reply 5, posted (3 years 2 months 2 weeks 5 days 13 hours ago) and read 2438 times:

Quoting bill142 (Reply 3):
Simply the US dollar to strengthen against the Australian dollar,

Dont you mean the other way around ?

If the USD strengthens against the AUD then property in the US would become more expensive for Aussies , not cheaper .

Moderation in all things ... including moderation ;-)

kevinl1011 From United States of America, joined Mar 2005, 2964 posts, RR: 51
Reply 6, posted (3 years 2 months 2 weeks 5 days 13 hours ago) and read 2430 times:

Quoting Springbok747 (Reply 4):
Don't you have to be a resident to buy property?

AFAIK all you need is a valid US tax ID# and good domestic credit history or cash on the barrel head. The tax ID can be a corporation. If it's a residence, being "owner occupied" streamlines the loan underwriting process and earns a lower interest rate.

474218, Carl, You will be missed.

bill142 From Australia, joined Aug 2004, 8320 posts, RR: 9
Reply 7, posted (3 years 2 months 2 weeks 5 days 13 hours ago) and read 2418 times:

Quoting kiwiandrew (Reply 5):
If the USD strengthens against the AUD then property in the US would become more expensive for Aussies , not cheaper .

Not when you come to sell the property and bring the money back. I'm saying there's potential in buying in the US taking the risk that you're going to make money on exchange rather than an increase in property values.

melpax From Australia, joined Apr 2005, 1419 posts, RR: 1
Reply 8, posted (3 years 2 months 2 weeks 5 days 13 hours ago) and read 2413 times:

Quoting Springbok747 (Reply 4):
Can foreigners actually buy property in the US? Don't you have to be a resident to buy property?

Form reading the article, it looks like you don't, though I could be wrong.

There are restictions in place for forgieners buying property here, but there's lots of Chinese money coming into Melbourne property at the moment, a lot of it is families buying homes for their children to live while they study here.

http://www.firb.gov.au/content/policy.asp

Will work for beer

lowrider From United States of America, joined Jun 2004, 3220 posts, RR: 11
Reply 9, posted (3 years 2 months 2 weeks 5 days 10 hours ago) and read 2365 times:

Quoting melpax (Thread starter):
Australian investors locked out of the expensive property market here are starting to buy cheap property in the US

Thank you Aussies. I have wondered where we could find a market for the excess inventory of property. Wishing you many happy returns on your investments.

Proud OOTSK member

N1120A From United States of America, joined Dec 2003, 25852 posts, RR: 79
Reply 10, posted (3 years 2 months 2 weeks 4 days 15 hours ago) and read 2240 times:

Quoting Springbok747 (Reply 4):
Can foreigners actually buy property in the US? Don't you have to be a resident to buy property?

Now why would you need to do that? How do you think the Japanese owned 75% of downtown Los Angeles at one point in the 1980s?

Quoting kiwiandrew (Reply 5):

If the USD strengthens against the AUD then property in the US would become more expensive for Aussies , not cheaper .

That isn't the point. When the USD strengthens against the AUD, those Aussies who have bought property in the US now will be sitting pretty, even if the property price does not actually increase.

Mangeons les French fries, mais surtout pratiquons avec fierte le French kiss

KiwiinOz From New Zealand, joined Oct 2005, 2029 posts, RR: 5
Reply 11, posted (3 years 2 months 2 weeks 4 days 15 hours ago) and read 2228 times:

Do you pay tax on a property capital gain in USA?

2012....the year for goofing off

BMI727 From United States of America, joined Feb 2009, 14342 posts, RR: 26
Reply 12, posted (3 years 2 months 2 weeks 4 days 15 hours ago) and read 2222 times:

Quoting KiwiinOz (Reply 11):
Do you pay tax on a property capital gain in USA?

Yes, with the exception of what is known as a 1031 exchange. In short, a 1031 exchange is selling one piece of property and using the proceeds to purchase another. Under the tax code (section 1031, hence the name) the capital gains taxes from the sale can be deferred until the second property is sold.

Why do Aerospace Engineering students have to turn things in on time?

N1120A From United States of America, joined Dec 2003, 25852 posts, RR: 79
Reply 13, posted (3 years 2 months 2 weeks 4 days 15 hours ago) and read 2222 times:

Nevermind. I looked it up.

[Edited 2010-03-07 00:31:35]

Mangeons les French fries, mais surtout pratiquons avec fierte le French kiss

VonRichtofen From Canada, joined Nov 2000, 4621 posts, RR: 40
Reply 14, posted (3 years 2 months 2 weeks 4 days 14 hours ago) and read 2213 times:

A lot of Canadians are doing the same thing.

I can't believe how cheap houses are in many parts of the US. Florida or Arizona you can get a huge 4 bedroom house with a pool for the same price as a small apartment condo up here.

Or some people buying apartments in Florida and just paying cash (no mortgage) because they're so cheap.

Me thinks Americans are going to have to deal with a lot more "snowbirds" during the winter

Word

Springbok747 From Australia, joined Nov 2004, 4387 posts, RR: 13
Reply 15, posted (3 years 2 months 2 weeks 4 days 13 hours ago) and read 2195 times:

Quoting melpax (Reply 8):
There are restictions in place for forgieners buying property here, but there's lots of Chinese money coming into Melbourne property at the moment, a lot of it is families buying homes for their children to live while they study here.

Yup..but there are certain groups who can buy property even if they are on temporary visas (like doctors, nurses etc).

Quoting N1120A (Reply 10):

Now why would you need to do that? How do you think the Japanese owned 75% of downtown Los Angeles at one point in the 1980s?

I didn't know anyone could buy property in the US..thought you have to be a resident to buy/own property.

אני תומך בישראל

US330 From United States of America, joined Aug 2000, 3745 posts, RR: 14
Reply 16, posted (3 years 2 months 2 weeks 4 days 8 hours ago) and read 2113 times:

Just make sure they do their homework before they buy.

Quoting VonRichtofen (Reply 14):
I can't believe how cheap houses are in many parts of the US. Florida or Arizona you can get a huge 4 bedroom house with a pool for the same price as a small apartment condo up here.

That's because those two states were hit big time by the mortgage crisis--lots of foreclosures, and plenty of vacant property.

Quoting VonRichtofen (Reply 14):
Me thinks Americans are going to have to deal with a lot more "snowbirds" during the winter

That's fine with me. More Snowbirds means more money for the local economy.

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