Can Australians purchase property in the USA?
Yes. The USA real estate market is open to everyone from all nationalities without restrictions on the amount of property one can acquire, making it the perfect investment opportunity.
Is purchasing American real estate safe?
America and Australia both share similar values regarding business accountability and both have an effective judicial system. Real estate is tightly regulated in America as it is here. Property titles are easily searched public records and only properties with clear titles will be recommended to our clients. The title company ensures all titles are confirmed prior to settlement. America Property Source only works with licensed American real estate professionals, ensuring the process and outcome is safe for Australian investors.
How does it work?
America Property Source has a proven system in place to provide Australian investors with the appropriate structures to safely purchase real estate. Before we source a property for an investor, we establish you in a position to buy, which includes registering a company structure known as a Limited Liability Company (LLC) and provide you with a Employer Identification Number (EIN) that will allow you to open an American business bank account, purchase property and pay US taxes. America Property Source clients are also introduced to our preferred Associated Foreign Exchange (AFEX) currency broker who will open your currency trading account so that your money is exchanged at the best possible rate on any given day.
We work with a team of professional service providers who will support you throughout your investment journey.
How long does it take to purchase a property in the USA?
Once you have a foreign exchange (FOREX) account, LLC and EIN you are in a position to make an offer and settle on a property in the USA. America Property Source has managed cash-only transactions in as little as 72 hours from the time a purchase decision was made. Financed houses might take up to 30 days once a purchase agreement is signed. Our clients who are using American bank finance will receive a pre-approval letter prior to submitting an offer.
What is a Limited Liability Company (LLC)?
An LLC is a flexible company structure available in the USA which blends elements of partnership and corporate structures. An LLC is not a corporation like a Pty Ltd in Australia. It is a legal form of company that provides limited liability to its owners. The primary advantage of an LLC is that its owners, known as members, have “limited liability”, meaning that, under most circumstances, they are not personally liable for the debts and liabilities of the LLC.
An LLC can obtain a tax identification number, open a bank account and do business, all under its own name. An LLC is taxed as a pass-through entity, and the owners of the LLC are not subject to double taxation. Having an LLC allows members the option to have the profits “pass through” to the owners who pay taxes at their individual tax rates.
Do I need to have a LLC?
LLCs are the entity of choice in America for property investors. There is no law stating that foreigners have to own property in a LLC. However, America Property Source promotes best practices and will only work with investors who are using a company structure. We are happy to work with investors who have a pre-existing LLC or who wish to organise their own LLC.
How do I open an American bank account?
America Property Source has a system in place to open a bank account for our clients. You must have a current LLC and EIN in order for our bank to open an account without you being physically present.
Am I able to borrow money from a bank in the USA?
America Property Source works with an American bank that will lend to foreign investors in the State of Arizona. Their terms are 70 percent loan to value! Australian investors have to visit the bank in the USA to be physically verified by a bank officer before an account can be opened or a loan application submitted with our lenders bank. The bonus is that you will meet your real estate USA team on the trip across the pond and enjoy exploring Phoenix!
What returns can I expect?
The American houses we source for our clients yield net annual returns between five and 12 percent cash on cash. America Property Source provides accurate data for known fixed costs and endeavors to be conservative in projecting unknown costs. Active investors who communicate with their team achieve greater returns over time. Active investors are encouraged to measure their investments’ performance quarterly.
What do houses for sale in America cost?
Single family homes in an area that America Property Source will promote range from US $80,000 to $150,000. We are able to source units starting from US $60,000.
Who will manage my property in the USA once purchased?
America Property Source works with multiple USA real estate companies who are experienced in working with foreign investors. We will introduce options for buying real estate in the USA and encourage all clients to take an active role in building strong relationships with their property managers.
What about American taxes?
We pride ourselves on the team of real estate professionals available to help our clients succeed. America Property Source introduces our clients to international accountants experienced in Australian/US tax. There are tax advantages to owning real estate in both America and Australia. Because personal tax situations vary, we advise you to speak with our experts about how to realise the maximum benefit from your American real estate portfolio.
How do I pay taxes in the US?
America Property Source will introduce you to a US accountant who will look after all of your US tax requirements. Australia and the United States have a tax treaty that prevents double taxation. Being an active investor requires educating yourself on the benefits of your investment. If your Australian accountant does not understand how you will benefit from your USA real estate investment then we will direct you to an accountant who will.
What if I want to visit my property in the USA?
Simply let America Property Source know your travel plans and dates so that we can help you plan a day or two for you to meet your American real estate team and visit the city you have invested in. We love it when our clients visit their property and meet the professionals on the “other side” who work hard to make your investments perform. Ask your accountant about the best way to pay for your trip to gain the maximum tax benefits.
How do I sell real estate in the USA?
Our team of licensed US real estate agents is on hand to advise as to who is best suited to list and sell your investment property should the need arise.
In the USA you are able to sell an existing property to “trade up” or multiply your American real estate holdings without capital gains consequences if you purchase a like property within the 180-day time frame. This practice is called a 1031 Exchange and our US agents and accountants will be able to facilitate these transactions for you.
Why use America Property Source?
A real estate investor founded America Property Source. We built a team of real estate investors who are licensed property agents as well. This is a community of investors working with investors, for investors. We work with people who have integrity and who we enjoy sharing our time with. We understand that property is a social business and profit is a team sport. If you want to get rich quick, we can’t help you. If you want to multiply your wealth over time with quality American real estate investments and learn how to be an active investor then we would love to hear from you, so please contact us.