Highlights from this week:

What do investors need to be aware of if they want to invest in the USA property market?
Should investors travel to the location to see property before buying overseas?
The biggest decision you will have to make when buying a property.
Why a ‘renovate and sell’ strategy does not always return well
The bean counter for Australasia’s richest man speaks out about negative gearing
How will Melbourne cope with a skyrocketing population growth and what opportunities will emerge in the next 30+ years
The designs that have influenced how we build Aussie houses

Transcripts:
What to watch out for when investing in the USA - Reed Goossens
Kevin:  One of the common questions I’m asked through the show is whether or not it’s wise to invest overseas, and no doubt in that conversation, we’ll always talk about the U.S.A. market – a very hot market in recent times. I am going to talk now to my next guest, Reed Goossens, who is an expert in this field, buying in the U.S.A., and has a website called RSNPropertyGroup.com. I will give you that website again a little bit later if you want to know a little bit more about it. He joins me.

Reed, thank you very much for spending some time with us today.

Reed:  Thanks a lot, Kevin. Good day. It’s great to be here on this show.

Kevin:  I just wanted to know what investors need to be aware of if they want to invest in the U.S.A. property market?

Reed:  As International investors, the biggest thing you need to be aware of is obviously the way in which you structure deals in the United States. Being educated on your deal structure, being educated on how you can get your capital into the U.S.A. market, and just being aware that you can’t just walk over there and start buying properties left, right, and center at the flip of a switch. There’s some back-end stuff that needs to happen before investing.

But by and large, the international investors come to the United States for a couple of reasons. That’s capital preservation – they look to get their money out of the particular country that they are in – and they look for a good yield. The U.S.A. offers both those things, and it’s a stable government. And, also having the investment in the green buck. The American dollar is very, very enticing for many international investors from across the globe.

Kevin:  I do want to ask you about a lot of that back-end stuff before we finish this interview, but at the top level, are there any areas or types of properties to avoid if you are looking at investing in the U.S.A. market?

Reed:  When I first moved there, as you know and probably as a lot of your listeners know, there were the turnkey $50,000 to $100,000 properties that on paper could earn $600 or $700 a month. Those types of properties, I would definitely steer clear off. Turnkey in general, if you your listeners aren’t aware of it, the profits are stripped out once you as an investor get that turnkey property.

So, trying to make sure you’re understanding what you’re buying and understanding the numbers behind what you are buying. Just because it’s on paper and it looks good on paper, it might not necessarily mean how it reflects when you are actually operating the property.

Word of caution is if you are looking at any turnkey properties in the United States, then don’t get blindsided by the fact that something is worth $50,000 all in and you can rent it out for $700 a month and think you’ll get a cash flow of $300 to $400 dollars a month. Just take it with a pinch of salt and make sure you understand what you are buying and understand all the associated costs with running that property, particularly from far off, from abroad.

Kevin:  Yes, you can’t beat getting your boots on the ground. For that reason, do you think investors should travel to the States to see properties before they buy?

Reed:  100%. I always, always recommend my investors,