Hot Property In The USA by Today Tonight

Uploaded by USRealEstateTV on 18.01.2012

Welcome back, we all know how expensive real estate is here and it’s prompt to house
hunters to look further afield. Many Australians have found the place to buy is in the United
States where they can pick up homes for as little as 30,000 dollars. Bryan Seymour reports,
it sounds like risky business but the Ausssie-Invaders are happy to keep on buying.
I’m up to about 40 houses in the States at moment, give or take and picked up another
10 from last time. Melbourne man, Steve McKnight purchased this home in Florida, his favorite
state to invest, for 12 and a half thousand dollars, he then spent $13,000 fixing it up,
total cost is $25,000. The rent is $900 a month. The return is 42.3%.
Your own little slice of American pie at a fraction of the price.
“Now, how many bedrooms does this have?” “Oh, this is 3 bedroom and 3 bath”
“Oh wow, oh okay, nice” “A few years ago this place was going for
550-560 thousand” “Yes, that was about our peak”
“What about now” “Today, this is going for 3-330 and it’s
negotiable on condition” “How much did you need to spend on a place
like this with carpets, paint and that sorts of things”
“I’d say about 4-5 thousand dollars you’d only need carpet and paint”
“Okay” Where to buy, what to look for, the problems
to overcome, how to get the loan, the questions most Australians would never have dreamed
we’d be asking. Once thriving, main street USA is now diving. Many of the houses prices
across the United States have fallen 30% from their peak a few years ago. That’s to mostly
to people losing their jobs and not being able to make the payments. Right now there
are 12 million homes that have been foreclosed or about to be, ready to go on the market.
That’s a great flood of new property ready to come crashing down that is what is pushing
prices down within reach of Australian investors. Steve McKnight is an investing expect from he’s just returned from yet another tour of US cities reviewing
the best buys and he’s not alone. “I physically know of about 50 to 60 Aussies
out there doing this full time right now hopped across the pond making their fortune.”
This property also in Florida cost a $40,000. He spent $10,000 on renovations. Total cost
$50,000. He rent it out for $2,000 per month, for a net return of 48%. I’m not expecting
US property prices to go up anytime soon, what I’m investing in the US for is the
cash flow. What do you want? Do you want equity today?
Do you want a combination of both or do you want a monthly income? The answer to that
can determine where to buy. Florida is ideal for super cheap rentable homes that will give
you a source of income. Nevada is awash with discount dwellings. Las Vegas is America’s
foreclose capital. Then there’s California, home of Hollywood. Where a whole new genre
of dreams is coming true, like owning a home away from home. Here in California, they have
it better thanks to strong tourism, strong rental market and of course a great location,
yet even the golden state has been tarnished by foreclosures delivering the best bargains
in a generation. Bennati says these properties are ideal to hold on to for a few years until
their value increases again. Their foreclosed homes or the ever more popular short sale
properties. “Just explain to our viewers what a short
sale is.” “Seller says to the bank I can’t afford
the house, I’m going to have a realtor sell the house and if you approve this value, then
the house could be sold without going through the foreclosure process. The benefits are,
credit wise, that you will not have a foreclosure in your record which will be 7 years on your
credit report. “How old is this home?”
“This is 1990” “Okay. And, is this another short sale?”
“This is another short sale.” “What would this house have been worth at
the peak of the market?” “About 5,75,75”
“and now?” “About low 3’s”
“Wow” You should never ever buy a property just
because it looks cheap on the internet. Here are the top 5 pitfalls to watch out for.
Find out what taxes and charges you’ll have to pay, they’re all different in different
US states. Find the property manager you know you can trust to run things over there for
you, Check how much tax you’ll have to pay and whether you pay just in the United States
or both there and here. Make sure the foreclosed home you’re buying has only one mortgage
or you can find yourself with just a piece of paper and still owing a fortune and a key
factor according to Steve, it’s best to physically see your property for yourself.
I think everybody want to jump onto American wagon. I think everybody’s wanting to get
a piece of the action. And Steve McKnight along with other property experts here predicts
our market will remain flat for the first half of this year but signs of improvement
should be seen after that, hopefully. More information can be found on our website.