Cashflow Properties in Australia

11 Replies

Hi Everyone,

My wife (US Citizen) and I (Australian Citizen) have been investing in cashflowing properties in the US but we will ultimately move to and live in Australia. We are planning our overall real estate investment strategy and are evaluating whether we can/should include Australian cashflowing properties in our long term investment portfolio. 

I am seeking input and further discussion with anyone currently investing in Australian property that cashflows. 

We are open to all investment locations (we aren't currently living either the US / Australia) so would do it from overseas. Some locations we are considering are Perth, Bundaberg, Rockhampton, Sunshine Coast, Launceston, Adelaide. 

Thanks everyone!

Nick

G'day Nick

I am an investor both in AU and US markets.  Happy to help out if we can in either and/or provide some advice.  The AU market is a little harder to get into than the US market, very high upfront costs and low returns but can get some very good capital growth over time if the properties are in the right areas.

Reach out if I can help at all

Best regards

Lindsay

It depends what you want to achieve? If you are only looking for cash flow the Australian market is expensive and cash flow is rather low. Expect to see 2% cap rates in some areas. High capital growth if you pick the right area. Commercial properties tend to cash flow higher than residential but we are still talking 5% cap rates.

Also keep in mind currency fluctuations can impact your returns. For example if you make 10% and the currency shifts 10% at a time when you want to get your money back you just made 0%

Happy to chat further.

@Nick Yates I am currently investing into Brisbane where the gross yields are around the 5% mark however am looking at it as a long term play in terms of capital growth. I have just settled on a place with a large block with future subdivision plans. Please message me if you want to know more. I am actually looking at the US due to high yields. Is there a reason you are looking at AUS other than it is home? I am a bit of a novice in terms of US property however there does seem to be a lot of opportunities.

@Nick Yates , I'm looking to start out in real estate and am looking at the US due to Australia's such low yields. If you've any tips on international investing between Australia and the US, I'd love to hear them!

@Erik Noordam,  Thanks for the recommendation! I'd be very interested to hear any comments on international investment from Aus to US.

I'm in Perth and have noticed that some country towns in areas such as the wheat belt have quite good returns depending on your financing & fairly low price points. Perth is still fairly depressed overall but looks like it's close to the bottom of the market. There are some good opportunities & some areas have been rezoned to higher densities that can be developed when the time is right. My wife, Dana Sziklay Reynolds is a r/e agent & would be happy to help. She also works with developers around the country if you're considering buying new. Feel free to connect with either of us as if you like.

Originally posted by @Lindsay Stewart :

G'day Nick

I am an investor both in AU and US markets.  Happy to help out if we can in either and/or provide some advice.  The AU market is a little harder to get into than the US market, very high upfront costs and low returns but can get some very good capital growth over time if the properties are in the right areas.

Reach out if I can help at all

Best regards

Lindsay

 Thanks Lindsay. The way you have described it seems pretty spot on. May be in touch soon!

Originally posted by @Ren Fraser :

@Nick Yates, I'm looking to start out in real estate and am looking at the US due to Australia's such low yields. If you've any tips on international investing between Australia and the US, I'd love to hear them!

@Erik Noordam,  Thanks for the recommendation! I'd be very interested to hear any comments on international investment from Aus to US.

Well it certainly helps to have an American wife who works for a US company. She gets to apply for traditional mortgages with only a little extra paperwork. We chased cashflow in the Detroit market (cue eye rolls from Josh and anti-Detroit crowd) and have some very good cashflow for low purchase price. You have to know the areas to do this... My wife knows a lot about her home city. Now we will move back to Australia and wish to get setup with one or two Aussie based properties as investments. Yeah, no more high cashflow.

Originally posted by @Drew Reynolds :

I'm in Perth and have noticed that some country towns in areas such as the wheat belt have quite good returns depending on your financing & fairly low price points. Perth is still fairly depressed overall but looks like it's close to the bottom of the market. There are some good opportunities & some areas have been rezoned to higher densities that can be developed when the time is right. My wife, Dana Sziklay Reynolds is a r/e agent & would be happy to help. She also works with developers around the country if you're considering buying new. Feel free to connect with either of us as if you like.

 Hi Drew and thanks! I am not sure we are looking at Perth but perhaps we should. I just know it was so high for so long. Funny how cycles go. I might reach out again later.

Originally posted by @Ren Fraser :

@Nick Yates , I'm looking to start out in real estate and am looking at the US due to Australia's such low yields. If you've any tips on international investing between Australia and the US, I'd love to hear them!

@Erik Noordam,  Thanks for the recommendation! I'd be very interested to hear any comments on international investment from Aus to US.

 Hi Ren

There are some tricks you need to be aware of, but investing in the US from Australia is certainly viable, giving much higher cashflow than most AU investments (not necessarily the capital growth though). Definitely worth looking at!

Cheers

Lindsay