Rental Property Investor · Navarre, FL · Member since 2019 · 913 posts · 640 votes
There are a few of us Aussies here on BP, and I'm interested in hearing from those that are doing the long distance investing thing - like not just out of state, but across the ocean and investing in the USA. Anyone can join in. But looking for answers on getting financing to buy if someone lives in Australia and wants to buy in the USA. If you've got thoughts, answers or guidance, let us know, mate!
@Iris Cruz I know you have questions. @Laurence K. I know you have experience and answers.
@Michael King . Great idea for a thread, I’m sure there are quite a few Aussies on this site.
I started investing in the USA in 2014 . So far I have acquired 12 doors in Ohio. All have been purchased 100% with cash. I have found a few finance possibilities but they have been unpalatable in terms of interest rate and points.
Found a duplex listed on Tulia for $53,500 ,consists of 2 x 2 bed 1 bath unites - ranch style duplex built in 1958, 1736 sqft floor area Lot Size: 0.42 acres ,property tax is $1,242. Looks like it needs some renovation from the pictures , but hard to tell if it needs major work or not .
My friend that lives in the area, did some research and found it was also on Movoto and valued at $175,000 on that site.
My first thought was , it’s way under value if listed at 53,500 and valued at 175,000.
We have had to cancel our April trip to the PI. The government imposed travel restrictions would have us flying into Manila April 1st and being restricted to staying in Manila for the next 14 days.
Even the wedding we were planning to attend has had to be postponed due to the local restrictions on large social gatherings.
Its disappointing but understandable given the situation.
There are areas that you can buy distressed MFR's and rehab for your budget, but will be probably more likely a minimum of $50-75K USD not AUD to purchase these. The you will have quite a bit of rehab needed at these prices...
As for transferring funds, I would certainly recommend opening an account, you can do that once you are there, or there are actually a couple of other options; then the best way is to use an FX company to send the funds to your US account. Can do this in one hit. Just say its for a property purchase. You may get a call depending on the value of funds you are transferring, but no real issue :)
Best of luck!
Hopefully travel is all back to normal by June! I was planning my next trip in July as well, probably going to postpone for the time being and see how everything pans out
There are areas that you can buy distressed MFR's and rehab for your budget, but will be probably more likely a minimum of $50-75K USD not AUD to purchase these. The you will have quite a bit of rehab needed at these prices...
As for transferring funds, I would certainly recommend opening an account, you can do that once you are there, or there are actually a couple of other options; then the best way is to use an FX company to send the funds to your US account. Can do this in one hit. Just say its for a property purchase. You may get a call depending on the value of funds you are transferring, but no real issue :)
Best of luck!
Hopefully travel is all back to normal by June! I was planning my next trip in July as well, probably going to postpone for the time being and see how everything pans out
Cheers
Lindsay
Thanks Lindsay.
Not much else any one can do but wait things out , get the finances in order and keep researching/learning.
Connecting with an agent seems like the appropriate next move. Through some quick searches yesterday, I saw some month-to-month rentals in my town (East Brunswick, about 25 min from Somerville), but I’m sure they have those types of contracts in NJ and NY. Happy to help if you have any questions on towns/areas in NJ or if you need recommendations on real estate agents as I have a few friends who I’d recommend.
Thanks Kristen
What I found , when I try and send an inquiry to an agent through zillow redfin and tulia website , I cant contact the agents with out having a local US phone number .. Im logged in with my own account but the site treats me as being in the US which is preventing me from contacting agents..
Ideally I just need to be able to email the agent in the first instance and have them send me more details/info , then if I want to take things further , I would call them during their office hours..
Its a bit frustrating.
My Sister in-law lives in Raritan very near Somerville NJ
Another strategy I was considering was a property hack and have the sister in-law live on the property , but I believe the properties around where she lives , would be on the high end of the market , hence why I was looking at areas that are with in my budget but near or with in easy drive for her. The alternative was to search around Albany where my son has stayed in the past with our friends who live there and also look for multi family properties.
W
Use a Skype phone number-I believe they are "US" numbers. I can't remember if I paid a small fee for the number, but it very well might also be free.
Use a Skype phone number-I believe they are "US" numbers. I can't remember if I paid a small fee for the number, but it very well might also be free.
Absolutely correct! I use a Skype phone number to give me a "US" number so when they call me it diverts to my AU mobile. I pay $20 per year for the service then just a couple of dollars for a relatively long call when the diversion happens. I use the number regularly, and pay less than $15 per month
I haven't been watching the conversion rate of Aussie dollars to US; but I looked 2 days ago and am thinking about sending some US to Australia; it's a great time to buy Aussie dollars. Gosh maybe I should sell up and return to the motherland! $1 USD = $1.7 AUD as of 03/20/20 today.
Not sure if you guys managed to get some AUD, but since your post (i believe...trying to get my timings right) the AUD totally crashed for a few days, down as low as 0.55c USD. Almost looked as if it would hit 0.50c but has settled back a little now
Not sure if you guys managed to get some AUD, but since your post (i believe...trying to get my timings right) the AUD totally crashed for a few days, down as low as 0.55c USD. Almost looked as if it would hit 0.50c but has settled back a little now
I didn't, I don't think I have a bank account over there anymore. I believe they freeze accounts that haven't been used for 7 years. I haven't used any Aussie accounts for about 14.
Doubtful guys. I feel this crisis is going to have a larger impact on the US economy than the AU economy, although we will both be hit hard, and things wont be the same again afterwards, I have a feeling that AU will bounce back a little quicker than US so I'm guessing range between 0.60 - 0.65 will be around par...
Thanks for the tip to use Skype as my US contact number. I have had a Skype account for about 10 years and never even thought about it. I will have to look into it, cheers.
In the mean time, I am just taking things a day at a time at home and paying down a couple of mortgages as fast as I can. I hope when the crisis passes, I can look at refinancing some properties and using the borrowings for future investing.
Hope every one is safe well and not suffering financially.
@Michael King @david h. @Lindsay Stewart @Jordan Sinclair
Great posts here guys.
Crazy times.
Maybe it’s good to keep cash and see how things go ? However, if you have spare cash it might be some opportunities on the horizon. Nothing compared to 2008 I guess.
Finance is one thing that put us behind when buying in the US.
I have especially liked the lockdown since there's been predominantly light traffic on the roads and getting into the hardware store has been relatively easy. All so I can do renovations on a couple of apartments. The more people out on the roads, the madder I'm getting.
In my area what I'm seeing is low inventory and maybe not high prices, but certainly not bargain prices. Higher than expected, for sure. Being a buy and hold guy, for now I'm a hold then buy guy. So hanging on for my next deal.
Good to hear from you Iris, how's the market in Australia?
In all honesty I don't think there will be much of a decline, if any. The banks are working with people here, and I'm sure there, and the government is stepping in to help those in need (landlords are not considered those in need). People here seem to not be selling (it's prime selling time here now, spring is in the air), meaning lower inventory and in turn higher prices. It seems most of the investors are still circling like sharks waiting for the decline that I think won't happen. And that makes more competition for the low inventory, pushing the prices up. Maybe it's a good time to sell in the near future?
Local sales prices have really surprised me as they seem to be up.
Hmmmm. Having said all that, I have a moment of clarity and I'm going to watch the market not to buy, but the intent to sell...
If you get a good price future, why not selling and put on 1031 (I wish we had 1031 here, i think i will die holding properties in Australia just to avoid Capital Gains lol).
I'm just taking the time to study the market and attending to webinars much as I can.
I have been reading/ listening about syndication. Seems to be a good option for Aussies too.