Expert Advice with Todd Hunter. 03/10/2017
Although I don’t look like the ‘researching type of guy’, I do spend most of my time researching for either new locations to invest in or for deals within those locations.
Now I can’t be the only one to think this – but wHere have all the good deals gone?
It’s not that I can’t find them, it’s simply that the great deals in Australia are very few and far between. We all want low interest rates but this has increased people’s confidence to invest, and consequently increased the values in many property markets right across the country. This increase is due to increased competition, with the exception of WA currently. So whilst everyone was focusing on the Eastern States guess wHere I was – Exactly!
That said, the deals there will all but be gone shortly too. This directed my investing to another market and one where the prices are downtrodden (meaning awesome deals) and the yields are mind blowing – the USA!
What I am finding is that thousands of investors are extremely interested in investing in the US – I mean why wouldn’t you be – the numbers speak for themselves. But they hesitate due to lack of knowledge. Well, those days are gone!
I’ve been investing in Detroit now for nearly 6 years and the property prices have almost doubled in that time. In figures, that means the capital growth has been over 10% every year, with last year seeing 15%. The next two years will be the same too. To make this even more attractive, the yields are 14%-22%+. It’s no wonder that with growth and yield statistics like that, getting deals there now is almost impossible.
So it meant I needed to get back to the drawing board and research new locations. And that, I did. Having just come back from a research and buying trip I am happy to announce I have three new US city locations that are nothing short of amazing!
Imagine buying houses under US$80k – that’s a deposit for a house in Australia. Add to that yields between 14% and 22%+ (means the tenants are paying between US$220 – US$250 per week). Yeah I know – sounds too good to be true. Well, yeah it does, but once you learn all there is to know about the ins and outs you will soon see that the deals are out there – you just need to be looking in the right direction.
And it’s this reason that so many SMSF investors are also looking to invest in the US to earn a great passive income. I own 6 in my SMSF in the US myself and I now earn over $2,000 in Australian dollars per week income. Yes per week - I know, I still have to pinch myself too!
Todd Hunter is director, buyer’s agent and location researcher for Sydney-based wHeregroup. He is an active property investor himself and amassed a portfolio of 50 properties by the age of 31. For more of Todd's musings, see his Expert Advice section on our website OR visit the wHeregroup blog.
Disclaimer: while due care is taken, the viewpoints expressed by contributors do not necessarily reflect the opinions of Your Investment Property.
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