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Question: I have been thinking about buying property in the us.i live in australia, is it risky to do this?

(Posted by: Liv Jones on 2010-07-21 04:14:48)

I have been looking at properties on a website called Propertyindex.com this particular website coverts US dollards into AUS money so it gives you a basic idea of the price that you will be expected to pay for each property.There just seems to be so much available in the States, there's so much variety and its a lot cheaper that Australia.People that I speek to about this think its a risky investment idea.If anybody has had experience with this or can offer any usefull tips I would really appreciate it.Many thanks.Olivia

Posted by: Phil on 2010-07-21, 07:03:27

There is huge opportunity for anyone with money to invest in real estate here right now. HOWEVER! You must be a savvy investor and you must understand the local market where you are buying. So to do that from Australia is a bit of a stretch unless you have at the least been able to do it in Australia. If you buy a home here either you would use it as your own vacation home (you can come here up to six months per year) or you would rent it out. To rent it out means finding a management company (there are a lot; most of then stink) and of course knowing what it takes to keep the house in good shape and get a decent return. But homes are selling for amounts that mean you can actually pay a mortgage with the rental income these days. However, as a thirty year landlord I can tell you that there just a lot of things to know about a market, an area, a property before it makes sense to dive in with such a high dollar investment. The returns you could eventually (3-5 years) make are probably pretty substantial in terms of appreciation. But you should look to the returns you could get on renting if it's investment, since that's more reliable. Personally, I asked myself "if I thought real estate in Australia was a hot investment would I do it? " and the answer was "No, I don't know how to do it there, it's far too distant for me to be able to monitor what's going on. Too much risk. "

Posted by: Dom D on 2010-07-21, 04:16:32

As long as you dont move there illegaly then no. get a legal passport and a visa.

Posted by: Neha on 2010-07-21, 04:21:52

IF you want buying home, properties in U.S.A So please visit the website. openmarketrealty.com

Posted by: Joshua Martina on 2010-07-21, 04:53:04

As long as you get there legally, with a passport and visa it's fine. it's not hard to get that.

Posted by: Jordan on 2010-07-21, 05:36:25

It's legal with a passport and vida, but it's risky no matter where you live, if out-of-town. I live in Livonia, Michigan, and I wouldn't buy any property out of town. The risk would be the fact that you wouldn't be around to watch it and make sure it doesn't get broken into, burnt down, etc.

Posted by: jojoming on 2010-07-21, 06:56:00

The US market is quite different to Aus. There are some very high risk markets in the states so doing your homework is important. Also note that foreigners find it very hard to get a mortgage in the US, so you may not be able to gear your investments. I would recommend that you seek professional advice or talk to some other investors. It is a very bold move, but yes the returns are certainly there!

Posted by: PS on 2010-07-21, 22:09:14

Why not buy ownership in high quality Australian businesses, some of which is listed on the stock exchange . Take UnderCoverWear (UCW) for example. The company currently has 43 Million shares outstanding at 21 cents per share. That makes the entire company worth $9 Million. They are currently earning approximately $1Million per year after tax and is expected to earn over $2 Million per year as companies start to recover from the consumer slowdown. That is a return of 11% after tax and expected to double by 2012. You can't get that with property.