Am I able to legally purchase property in the US even though I am an Australian citizen? Yes, the US government does not have any limitations to the amount of properties you can purchase as a foreign national – all they ask is that you are a ‘friend’ of the USA.
How much does a US property cost? That’s a difficult question. Prices range from $50,000 for a single family house in a nice neighbourhood to multimillion dollar mansions. At American Property Partners, we like to assist our clients in properties priced from $50,000 to $200,000.
Why are American properties so much cheaper compared to Australian property? In 2006, the global financial crisis hit the USA, with the property market hitting an all-time high due to the banks’ lending capacities. When the banks made too many losses, they ceased lending, which in turn dramatically decreased the prices of American properties.
Where are the properties located? Properties provided through American Property Partners are located in Texas, Florida, Tennessee, Georgia, North Carolina, Phoenix and Missouri. We can also locate specific properties in most areas for clients who have specific criteria in what they are looking for.
How do you ensure that the properties are located in a secure area? We use our on-the-ground network of handpicked asset teams, who are experts in their particular area.
How do I finance my property? All properties offered by American Property Partners are financeable. In most cases, we have already requested the bank to assess the properties and will have the finance approved on the property itself.
How long does the purchase process take? What is the closing period? From signing your contract, we can generally close and settle finance properties in 30 to 45 days. Cash closings (settlements) would take approximately 15 to 20 days.
What are the insurance costs involved? The insurances vary from property to property and the structure you will be taking the property in. Mostly, insurance covers the replacement costs, which are substantially higher than the purchase price you will be paying for the home.
How much does stamp duty cost in the US? Good news: there is NO stamp duty in the USA.
Am I able to inspect the property multiple times before the purchase? You can certainly inspect before you purchase the home. This can be done in a number of ways: You can join one of American Property Partners’ regular buying or have an inspection stipulated on contract of sale, although it will have to be within the first 10 days of signing the contract.
Are there any other costs involved? All costs are covered on the property documents, which you will see when selecting properties.
What will be my average rental income? Your average rental income will depend on the property you select. Generally, it will range from $700 per month to $2000 per month.
What taxes are involved? Will I have to pay taxes on my rental income? Unfortunately you cannot get away from paying taxes. However, American Property Partners has a double tax arrangement in place with the USA, so you will pay an amount based on your income.
How do I transfer money from Australia to the US, and vice versa? We have hand-selected professional foreign exchange dealers to assist with opening accounts and ensuring that you are getting the best rates possible sending funds to the USA and vice versa to Australia.
Can I on-sell my US property? You can sell your US property, but we suggest you hold it for at least three years. All properties have a positive exit strategy.
What are the risks involved in buying US property? We believe that the biggest risk you can take is not using a trustworthy source. Some operators mean well but lack the instruments required to create a positive property portfolio for you. American Property Partners covers all these topics in our education seminars.
How much will the deposit be and how will I pay for it? The holding deposit on any purchase is $3000 and is paid via our foreign exchange dealers.