melpax
Topic Author
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Australians Buying Up Cheap US Property

Sat Mar 06, 2010 7:51 am

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
Essendon - Whatever it takes......
 
BMI727
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RE: Australians Buying Up Cheap US Property

Sat Mar 06, 2010 7:55 am

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.
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KevinL1011
Posts: 2858
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RE: Australians Buying Up Cheap US Property

Sat Mar 06, 2010 8:06 am

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.   
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bill142
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RE: Australians Buying Up Cheap US Property

Sat Mar 06, 2010 8:57 am

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
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RE: Australians Buying Up Cheap US Property

Sat Mar 06, 2010 9:49 am

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

RE: Australians Buying Up Cheap US Property

Sat Mar 06, 2010 9:54 am

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 .
 
KevinL1011
Posts: 2858
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RE: Australians Buying Up Cheap US Property

Sat Mar 06, 2010 10:05 am

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
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RE: Australians Buying Up Cheap US Property

Sat Mar 06, 2010 10:07 am

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
Topic Author
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RE: Australians Buying Up Cheap US Property

Sat Mar 06, 2010 10:10 am

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
Essendon - Whatever it takes......
 
lowrider
Posts: 2542
Joined: Wed Jun 30, 2004 3:09 am

RE: Australians Buying Up Cheap US Property

Sat Mar 06, 2010 12:40 pm

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.
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N1120A
Posts: 26468
Joined: Sun Dec 14, 2003 5:40 pm

RE: Australians Buying Up Cheap US Property

Sun Mar 07, 2010 8:08 am

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.
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kiwiinoz
Posts: 1999
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RE: Australians Buying Up Cheap US Property

Sun Mar 07, 2010 8:22 am

Do you pay tax on a property capital gain in USA?
 
BMI727
Posts: 11240
Joined: Mon Feb 02, 2009 9:29 pm

RE: Australians Buying Up Cheap US Property

Sun Mar 07, 2010 8:26 am

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
Posts: 26468
Joined: Sun Dec 14, 2003 5:40 pm

RE: Australians Buying Up Cheap US Property

Sun Mar 07, 2010 8:27 am

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
Posts: 4270
Joined: Sun Nov 05, 2000 3:10 am

RE: Australians Buying Up Cheap US Property

Sun Mar 07, 2010 8:39 am

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 
 
Springbok747
Posts: 4007
Joined: Sun Nov 14, 2004 9:13 am

RE: Australians Buying Up Cheap US Property

Sun Mar 07, 2010 9:35 am

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.
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us330
Posts: 3427
Joined: Tue Aug 08, 2000 7:00 am

RE: Australians Buying Up Cheap US Property

Sun Mar 07, 2010 3:20 pm

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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