Frequently Asked Questions

Where should I invest in the US?

America is a huge nation with very diverse real estate markets. Understanding all these markets is challenging for any investor, so our team is dedicated to ensuring that opportunities across the US are scrutinized and reassessed regularly.

The key for marrying investors with different real estate opportunities is based primarily on the investment goals they have and the exit strategy they want to adopt. We work with our investors to determine these things.

What is the condition of these properties?

Properties purchased by our team are renovated to a high standard. All work is controlled and monitored by us and we are then able to achieve efficiencies and discounts which we can then pass onto our investors.

The selected homes are renovated to a standard which sets them apart from other homes in the suburb, making them highly desirable properties for tenants.

What about taxes and structures?

Because the US is such a litigious country, Australian investors need to protect themselves in the event of some problem. We recommend you use an attorney to set up the appropriate structures to support and protect your investment and to minimize taxes. We can certainly put you in touch with attorneys who have experience in understanding the needs of foreign investors.

Many investors become quite stressed when trying to understand the exact ins and outs of how the tax here and in the US will affect them. The bottom line is that when you earn income, you will need to pay tax. A treaty exists between the US and Australia that ensures that there is no double taxation. Working with good accountants will ensure that action is taken to minimize taxes wherever possible.

Isn’t there a huge oversupply of properties in the US?

Yes and no.

The reality is that there are thousands of properties available on the market; but the percentage of those that we would regard as desirable investment properties is very small. Savvy investors recognize this and as such, the competition for good quality properties is high.

Why aren’t locals taking advantage of these prices?

Part of the problem is that many houses that go into foreclosure status aren’t even advertised properly. There is no time. A bank often just wants it off their books, so it might go straight to a property wholesaler who just markets it to their investor list. The local property market won’t even see it. You can have two houses right next door to one another. One being marketed by a home owner for say $70k while the property next door sells for $10k in the foreclosure market.

The other major reason you don’t see many locals buying within their own market despite the bargains, is that many of the people who want to buy have no cash and no equity, so they can’t even go to the banks for a loan. On top of this, banks will not lend to individuals in the residential property market for anything under $50k.

The other really important issue to consider here is that most people in these cities are in survival mode. They aren’t interested in building a property investment portfolio. All they want is to find somewhere to live and have a secure job.

Think about it from an Australian’s perspective. If Australia had been as badly hit by the GFC and we had seen similar job losses and falls in the price of real estate, do you think that the average mum and dad would be rushing out to build their investment portfolio? Getting money out of the banks would be near impossible and the average Australian probably wouldn’t care less about the bargains available.

What about property management?

We believe that one of the most important decisions investors need to make is how they are going to manage their properties after they purchase them.

Property Management in the US has historically had a terrible reputation because of the lack of regulation and a general cultural acceptance that the property manager should be looking out for the rights of the tenant rather than the property owner.

We recognize these shortfalls and have undertaken the task of setting up a Property Management business arm that adopts rigorous tenant screening and management practices. The rates we offer are competitive and we adopt an attitude of excellence to the standard of our property management. In addition to this, our understanding of issues faced by foreign investors means we have anticipated the additional service needs that may be required.

How can we find people there to support our purchase?

The team you put in place to support your investment decisions in the US can literally make or break your success. The types of professionals you might need as a minimum include Attorney’s, Insurance Brokers, Accountants, Property Managers and Trades people.

We understand this requirement and can recommend a number of independent consultants and professionals to support your purchase. These professionals have experience in dealing with foreign investors and actively participate in the acquisition of your properties.

What numbers are involved in the buying process?

Understanding the numbers associated with purchasing properties can be challenging for foreign investors. Our team will ensure that you understand the numbers involved and ensure full transparency of the process of purchasing property.