Our US rental houses project is moving ahead. With half-a-dozen acquisitions, and more in the pipeline, we’re looking forward to helping a number of clients to enjoy double-digit net pre-tax returns.
The extensive ‘homework’ we’ve done is paying off with good properties, a comprehensive, skilled and experienced team, and perhaps best of all, great tenants who are now sending their friends and relatives to us to become tenants as well!
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Currently seeking 2nd (and then more) investment property. The US is sounding good.
I am unsure where to start. I have been researching a lot but could do with Aussie advice.
Financials: 1 investment prop. (approx $200k equity, 7%yield)
Thanks
Phil
Hi Phil!
Thanks for your post.
Do you want to do it all yourself? That question needs to be answered first. Do you do-it-all-yourself when you buy Australian property? Most investors get trusted experts involved…
We’ve done a lot of ‘homework’ on US property.
I used to live there and work in the real estate sector, and I still have family there.
So I can more easily screen property (and people!) than someone who has no real long-standing connections there.
Here in Australia, you’d undertake ‘due-diligence.’
Choosing an American investment property is really not that different.
The usual property and location-related questions need to be answered.
But just as important, because of distance and different rules & regulations, you need to find reliable, trustworthy people to handle the property search & selection, negotiate the purchase, deal with the repairs & fix-up, find a suitable tenant and to manage the property.
We now have all these bases covered.
As an example, we just settled on a property for a client who paid A$51,200 all-up (price, inspections, fees & charges, fix-up) for a 3-bedroom house that will deliver a double-digit net pre-tax yield from day 1 of the tenancy.
This yield from an investment amount that isn’t much more than the deposit & settlement costs on an average house in any Australian major city.
House is in a good neighbourhood in an area of mostly owner-occupied homes. It’s just along the street from a rental house that I own myself.
Hope that helps a bit!