Monday 26 September 2011
Some positive signs in the USA real estate
Residential property in the USA have increased in the month of August despite the ongoing tight credit and the disruptions by natural disaster was reveled by the National Association of Realtors.
Sales are higher by 18.6% more compared to the 4.24 million unit level in August 2010.
‘Some of the improvement in August may result from sales that were delayed in preceding months, but favorable affordability conditions and rising rents are underlying motivations. Investors were more active in absorbing foreclosed properties. In additional to bargain hunting, some investors are in the market to hedge against higher inflation,’ explained NAR chief economist Lawrence Yun.
The main and biggest factor that is stopping home sales from a better recovery are mortgages being denied to creditworthy buyers.
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Tuesday 20 September 2011
Options for borrowing to buy a property in the USA
There are 4 different ways to borrow money to buy a property in the US:
-Borrow from an Australian lender and then send the money to the US
-Borrow from a lender from the US. This can be particularly difficult as they will require proof that you can afford the repayments and generally Australians don't have a credit rating in the US.
-Borrow from a hard money lender. This has the major disadvantage of high interest rates together with a lower loan to value rate and more cash needed.
-Get a Vendor finance.
-Borrow from an Australian lender and then send the money to the US
-Borrow from a lender from the US. This can be particularly difficult as they will require proof that you can afford the repayments and generally Australians don't have a credit rating in the US.
-Borrow from a hard money lender. This has the major disadvantage of high interest rates together with a lower loan to value rate and more cash needed.
-Get a Vendor finance.
Thursday 15 September 2011
Useful links when doing due diligence and analyzing the US market and spotting the safe areas.
http://www.realtor.com/home-values/
Where you can find with a free report how much prices are around the area you are looking, how much did houses have sold in a specific area you select, trends, how long is taking to sell, etc.
http://zipatlas.com/
This web page will give you a report showing you right in the map a detail explanation of demography.
social and economic profiles, as well as statistics, employment rates, households and personal income and much more!!
http://www.zillow.com and www.trulia.com
They share vital information about homes, real estate and mortgages. It gives information about how much was a property last sold for, properties for sale in a specific area, foreclosure, etc
http://www.finestexpert.com/
They provide detailed investment property report, cash flow potential, etc.
A good way to find the most recent assessed price for a property in Miami, that is the amount of property tax you'll pay go to this government website:
http://gisims2.miamidade.gov/MyHome/propmap.asp Great web pages when doing your due diligence!
www.redfin.com
www,gosection8.com - to see what is available in your area for tenants.
www.listingbook.com
www.spotcrime.com
www.rentometer.com
Great web pages when doing your TAX return http://www.trexglobal.com/property-management/landlord-resources/rental-property-tax-deductions
Where you can find with a free report how much prices are around the area you are looking, how much did houses have sold in a specific area you select, trends, how long is taking to sell, etc.
http://zipatlas.com/
This web page will give you a report showing you right in the map a detail explanation of demography.
social and economic profiles, as well as statistics, employment rates, households and personal income and much more!!
http://www.zillow.com and www.trulia.com
They share vital information about homes, real estate and mortgages. It gives information about how much was a property last sold for, properties for sale in a specific area, foreclosure, etc
http://www.finestexpert.com/
They provide detailed investment property report, cash flow potential, etc.
A good way to find the most recent assessed price for a property in Miami, that is the amount of property tax you'll pay go to this government website:
http://gisims2.miamidade.gov/MyHome/propmap.asp Great web pages when doing your due diligence!
www.redfin.com
www,gosection8.com - to see what is available in your area for tenants.
www.listingbook.com
www.spotcrime.com
www.rentometer.com
Great web pages when doing your TAX return http://www.trexglobal.com/property-management/landlord-resources/rental-property-tax-deductions
Tuesday 13 September 2011
Frequent asked question about ITIN
To find out the answer to this questions
- What is an ITIN?
- What is an ITIN used for?
- Who needs an ITIN?
- How do I know if I need an ITIN?
- How do I apply for an ITIN?
- When should I apply for an ITIN?
- Where can I get help with my ITIN application?
- How and when can I expect to receive my ITIN?
go to the following webpage
http://www.irs.gov/individuals/article/0,,id=222209,00.html
Note that:
As a non US citizen you can not receive a SSN or social security number.
Monday 12 September 2011
Notes about opening a bank account in the US
Having a bank account in the us can make your life a lot easier.. The challenge is to open one without you being there. Ideally when going to the US to inspect the property make sure you open your US bank account then as they wont have a problem to open it just showing your passport. A lot of people have problems opening a bank account from Australia.
Having a holding account (a US foreign currency account with a bank in Australia can be very useful when transferring the money from it straight to an account set up with a bank directly in the US.
Bank of America are heavy chargers when it comes to transfers of cash and they set a max limit when transferring of 5k with a transfer fee of 25 each time this is done.
I believe the best way to transfer money and exchange it its OZforex or NZforex (see links at the bottom of this page)
To set up the HSBC account: the process takes approx two weeks after submission of application.The costs to set up the account are:In Australia $200 AUD In New Zealand $275 NZD this fees are payable on application.
Note that HSBC makes mandatory that you are an existing customer and hold an account with them for at least 3 months. Unless this criteria is not meet they will not process the account in the USA.
Useful link
http://www.us.hsbc.com/1/2/3/hsbcpremier/worldwide/buying
Having a holding account (a US foreign currency account with a bank in Australia can be very useful when transferring the money from it straight to an account set up with a bank directly in the US.
Bank of America are heavy chargers when it comes to transfers of cash and they set a max limit when transferring of 5k with a transfer fee of 25 each time this is done.
I believe the best way to transfer money and exchange it its OZforex or NZforex (see links at the bottom of this page)
To set up the HSBC account: the process takes approx two weeks after submission of application.The costs to set up the account are:In Australia $200 AUD In New Zealand $275 NZD this fees are payable on application.
Note that HSBC makes mandatory that you are an existing customer and hold an account with them for at least 3 months. Unless this criteria is not meet they will not process the account in the USA.
Useful link
http://www.us.hsbc.com/1/2/3/hsbcpremier/worldwide/buying
Setting up an EIN - Employer Identification Number- in the USA
It is essential to get an Employer Identification Number (EIN) and a Individual Taxpayer Identification Number (ITIN) to buy a property in the USA.
| | |
| This is a free service offered by the IRD. Beware of web pages that charge for this free service. Go to this link: http://www.irs.gov/businesses/small/article/0,,id=97860,00.html The best way its to do it on the phone calling (267) 941-1099 (Not a toll-free number) Note that due to the time difference you will have to call late at night. | |
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Friday 9 September 2011
Tips for getting a property bargain in the US market
1- Choose your geographical location, your budget. This can collide, there is no point in wanting to buy in NY if your budgets its 30k! So first see how much you can afford and then the area that can provide that sort of target price. Put also in consideration that some cities would provide better cash flow than capital growth and vice versa.
2. Search and inspect as many properties as possible. If you can afford the time off it will pay off to travel to the states and see the property yourself. Know the area like the palm of your hand so you know to spot where the gems are.
I once heard that the pictures that you see of a property online you will find that 1 third are better than what you had expect when you actually see the property, another 1/3 are misliding and only 1/3 its what you would have expect.
3. Find out the property history - How many times was bought and sold, was it a foreclosure sale? How much was it sold for, etc. Its important to know how long its being in the market for when was advertise for sale.
4. Selling Times and discounted prices. Consider that the longer the time it takes to sell the most likely the are its not the best, as the ones that are likely to perform well have a convination of short time in the market and less discount by the seller.
5. Talk to people that know the market. Make friend with local people either in person or on line and try to get a good feel of why they like the place. Make out of your agent a friend and be clear of what you are looking for.
6.Caution. Take caution when the price its extremely good, you have to wonder if its because there is a flaw or what its causing the unrealistic price. In the US we are seeing amazing good prices for a property but make sure this is not because of the undesirable location or poor construction. I wouldn't recommend to buy a property that needs renovation, although you might profit with the sale price you have to consider the hassle of repairing a house living in another country.
2. Search and inspect as many properties as possible. If you can afford the time off it will pay off to travel to the states and see the property yourself. Know the area like the palm of your hand so you know to spot where the gems are.
I once heard that the pictures that you see of a property online you will find that 1 third are better than what you had expect when you actually see the property, another 1/3 are misliding and only 1/3 its what you would have expect.
3. Find out the property history - How many times was bought and sold, was it a foreclosure sale? How much was it sold for, etc. Its important to know how long its being in the market for when was advertise for sale.
4. Selling Times and discounted prices. Consider that the longer the time it takes to sell the most likely the are its not the best, as the ones that are likely to perform well have a convination of short time in the market and less discount by the seller.
5. Talk to people that know the market. Make friend with local people either in person or on line and try to get a good feel of why they like the place. Make out of your agent a friend and be clear of what you are looking for.
6.Caution. Take caution when the price its extremely good, you have to wonder if its because there is a flaw or what its causing the unrealistic price. In the US we are seeing amazing good prices for a property but make sure this is not because of the undesirable location or poor construction. I wouldn't recommend to buy a property that needs renovation, although you might profit with the sale price you have to consider the hassle of repairing a house living in another country.
Cities where to buy real estate in the USA - Fast facts: Miami
Miami, the most populous in Florida and one of most important financial centers in the US.
Miami has suffered one of the biggest drops in property value. There are many Spanish speakers together with a boom of the Brazilians buyers who are enjoying the benefits of their emerging economy and their high exchange rate against the us dollar.
Facts:
Miami has suffered one of the biggest drops in property value. There are many Spanish speakers together with a boom of the Brazilians buyers who are enjoying the benefits of their emerging economy and their high exchange rate against the us dollar.
Facts:
- Known as "America's Cleanest City" for its clean air.
- Forbes Magazine named Miami the 2nd most miserable city in the US (high foreclosure rate and past decade of corruption among public officials)
- Tourism its one of the major industries in Miami with 38 million people visiting the city
- In the year 2000 Spanish was the fist language for 66.75% of residents, English by 25.45%
- Miami Airport its one of the busiest in the world catering for 35 million passengers a year
Tips for a successful investment:
Have a strategy:
Have a plan as what would you like to achieve with each purchase. See the big picture and have a course of action.
Invest like a business
Know how to make the most of your money by making it work for you.
Always educate yourself first.
Do your due diligence can pay off, don't expect to learn the hard way by trial and error.
Develop a Niche
Research about the type of investment and become savvy.
Know your market.
Knowing what your market wants its a key point to make a sound business decision on your investment.
Expand your horizons
Most of us would be happy with just one property but nothing stops us from thinking big and create a wider investment property portfolio that could help to generate an income and quit our day job!
Mitigate Risk
A good investor know its risk and try to reducing buy getting protection whenever possible.
Have a plan as what would you like to achieve with each purchase. See the big picture and have a course of action.
Invest like a business
Know how to make the most of your money by making it work for you.
Always educate yourself first.
Do your due diligence can pay off, don't expect to learn the hard way by trial and error.
Develop a Niche
Research about the type of investment and become savvy.
Know your market.
Knowing what your market wants its a key point to make a sound business decision on your investment.
Expand your horizons
Most of us would be happy with just one property but nothing stops us from thinking big and create a wider investment property portfolio that could help to generate an income and quit our day job!
Mitigate Risk
A good investor know its risk and try to reducing buy getting protection whenever possible.
Wednesday 7 September 2011
Comparison of the sales agent charges in Australia to buy property in the USA
In some cases there are an initial agreement fee plus a second fee in this case so I will split them with a plus in the middle"
www.888usrealestate.com.au
$188 AUD plus $3800 AUD or 8% of property value whatever is higher
http://www.usinvest.com.au
995 plus 3005 aud
http://www.21stcenturyusproperty.com
Membership for 1 property starts at 5.000aud
http://www.eccoassets.com.au
no charges - (they own the property rehab and resell it)
usprime.com.au/
$495 for US Set-Up Service fee -+ plus adding value to distressed property
www.888usrealestate.com.au
$188 AUD plus $3800 AUD or 8% of property value whatever is higher
http://www.usinvest.com.au
995 plus 3005 aud
http://www.21stcenturyusproperty.com
Membership for 1 property starts at 5.000aud
http://www.eccoassets.com.au
no charges - (they own the property rehab and resell it)
usprime.com.au/
$495 for US Set-Up Service fee -+ plus adding value to distressed property
(and http://myusaproperty.com.au/services.php )
no resgistraion and no service fee (?) They simply mark the property up?
www.cashflowgold.com
initial fee 785aud +2995 USD (total 3780aud)
no resgistraion and no service fee (?) They simply mark the property up?
www.cashflowgold.com
initial fee 785aud +2995 USD (total 3780aud)
Useful link to do your due diligence when buying property in the USA
Here are some usefuel links to see if the property you are buying its at the right price:
How to set up an LLC in the USA
A LLC or Limited Liability company, has become the most popular legal structure for property investments. The requirements can be slightly different from state to state but although you can use an attorney to do this, unless you have a complex structure you could do it yourself in a max of 4 hours.
Steps to set up the LLC
1 Get a copy of your state's LLC Articles of Organization form the Secretary of State office
This link is for Secretary of State - Georgia
http://sos.georgia.gov/corporations/filing_procedures.htm in this case is 50 dollars fee for an anual registration.
This would be for Misouri
http://www.sos.mo.gov/BusinessEntity/BusinessEntitiesOnline/help/mo/notice.aspx
2 Select a name for your LLC that complies with the States rules. It has to be unique in the state where you are filing.
3. Complete the LLC Articles of Organization form where you outline what is the purpose of your llc, name, the address of where legal documents will be sent, the name of the register agent in the case of having one and the members of the LLC. This is a fairly easy form to fill.
Note that you will always require a "Registered Agent" to act on your behalf in the state of creation for the LLC.
4. In some states you are required to publish a notice in a local newspaper advising the intention of creation the LLC. This is only compulsory in some states as Arizona and NY.
5. Submit your Articles of Organization form to the Secretary of State office together with the fee applicable. Fees can variate a lot from state to state, from 40 to 900 dollars. Note also that there are in some states corporate tax that are separate from the filing fee.
Note that if you are more than one person under the LLC you might have to loo into the Operation Agreement although its not required by the State its will be useful in case someone wants to leave the llc, how and when it will the profits of the company be distributed, etc. Don't leave this unanswer as, even in the case of being together in the LLC with family and friends can become a big problem. Make sure you are clear on all terms.
NOTE - Be careful with costs associated of using an online ‘registered agent’ for your LLC, after 3-6 months there will usually be an ongoing cost for this.
Steps to set up the LLC
1 Get a copy of your state's LLC Articles of Organization form the Secretary of State office
This link is for Secretary of State - Georgia
http://sos.georgia.gov/corporations/filing_procedures.htm in this case is 50 dollars fee for an anual registration.
This would be for Misouri
http://www.sos.mo.gov/BusinessEntity/BusinessEntitiesOnline/help/mo/notice.aspx
2 Select a name for your LLC that complies with the States rules. It has to be unique in the state where you are filing.
3. Complete the LLC Articles of Organization form where you outline what is the purpose of your llc, name, the address of where legal documents will be sent, the name of the register agent in the case of having one and the members of the LLC. This is a fairly easy form to fill.
Note that you will always require a "Registered Agent" to act on your behalf in the state of creation for the LLC.
4. In some states you are required to publish a notice in a local newspaper advising the intention of creation the LLC. This is only compulsory in some states as Arizona and NY.
5. Submit your Articles of Organization form to the Secretary of State office together with the fee applicable. Fees can variate a lot from state to state, from 40 to 900 dollars. Note also that there are in some states corporate tax that are separate from the filing fee.
Note that if you are more than one person under the LLC you might have to loo into the Operation Agreement although its not required by the State its will be useful in case someone wants to leave the llc, how and when it will the profits of the company be distributed, etc. Don't leave this unanswer as, even in the case of being together in the LLC with family and friends can become a big problem. Make sure you are clear on all terms.
NOTE - Be careful with costs associated of using an online ‘registered agent’ for your LLC, after 3-6 months there will usually be an ongoing cost for this.
Where do agents suggest you buy property in the USA :
Ecco Assets: Michigan,
US Prime property:Cleveland, Memphis and Atlanta
My USA property: Kansas City, Dallas, Atlanta, Miami
888 US Real Estate:: Kansas City, Atlanta, Phoenix
House buyers USA: Phoenix, Kansas City, Pontiac, Memphis, Atlanta
21 century Properties – Phoenix, Kansas City, Atlanta and St Louis
Some properties sometimes are advertised by different agents so shop around!
E.g:
http://usprime.com.au/2011/06/24/atlanta-ga-53129/
http://www.888usaproperty.com.au/102717/#
US Prime property:Cleveland, Memphis and Atlanta
My USA property: Kansas City, Dallas, Atlanta, Miami
888 US Real Estate:: Kansas City, Atlanta, Phoenix
House buyers USA: Phoenix, Kansas City, Pontiac, Memphis, Atlanta
21 century Properties – Phoenix, Kansas City, Atlanta and St Louis
Some properties sometimes are advertised by different agents so shop around!
E.g:
http://usprime.com.au/2011/06/24/atlanta-ga-53129/
http://www.888usaproperty.com.au/102717/#
Tuesday 6 September 2011
Tips and information when investing in the US property market
. What type of people does this area appeal? Would you like to live there.. Its a clicke but when buying a property its very important the location location location.... Being in the best spot is paramount for a great investment. Are the schools, cinemas shopping malls around? This is an importact factor to consider when you are looking at selling with a good capital growth.
NOTE: In the US , unlike in Australia where we have good suburbs and bad ones in the US you might find a good street and walk 200 mts and be in a bad street!
Is there much work around? Hospitals, shopping malls and universities for instance are a good souce of income.
. Where is the path of progress? Once you identify the best city for you, are you looking for property within the path of progress? In other words, which direction is the city growing? If the city is growing to the north corner because a new Toyota plant just opened, then all your commercial builders are adding strip malls and gas stations, etc.. Therefore, this is where jobs are heading and where everyone wants to be.
. Do you have access to a good property management? This is very important as you will have to relay on them for almost everything. So spend as much time as possible making sure its the right chose. Note that the rent in the US its paid montly and some Property managers collect the rental income from the house and not all of them bank online. Property managment charge between 8 and 10 percent commision.
- Are you getting the best possible exhcange rate? Shop arround for the best currency exchange, specially when transfering the principal amount.
- Dont believe everyting they say! Always take in considertation what the person its getting buy advising you to act. Are they getting a commission? That might influance what they advise.
- Settlment on a property it could take between 2 to 4 weeks at the most, depending what type of sale it is.
- Emsure you have done a pest inspection on the property.
- Research about the State taxes and the Goverment taxes that might be different from States to states.
NOTE: In the US , unlike in Australia where we have good suburbs and bad ones in the US you might find a good street and walk 200 mts and be in a bad street!
Is there much work around? Hospitals, shopping malls and universities for instance are a good souce of income.
. Where is the path of progress? Once you identify the best city for you, are you looking for property within the path of progress? In other words, which direction is the city growing? If the city is growing to the north corner because a new Toyota plant just opened, then all your commercial builders are adding strip malls and gas stations, etc.. Therefore, this is where jobs are heading and where everyone wants to be.
. Do you have access to a good property management? This is very important as you will have to relay on them for almost everything. So spend as much time as possible making sure its the right chose. Note that the rent in the US its paid montly and some Property managers collect the rental income from the house and not all of them bank online. Property managment charge between 8 and 10 percent commision.
- Are you getting the best possible exhcange rate? Shop arround for the best currency exchange, specially when transfering the principal amount.
- Dont believe everyting they say! Always take in considertation what the person its getting buy advising you to act. Are they getting a commission? That might influance what they advise.
- Settlment on a property it could take between 2 to 4 weeks at the most, depending what type of sale it is.
- Emsure you have done a pest inspection on the property.
- Research about the State taxes and the Goverment taxes that might be different from States to states.
Pros and cons of buying property in the USA
Here are some of the things we have to consider before entering into the US market:
Pros:
Good rentals - cash flow positive properties unlike Australia
Straong Rental yeids.
Good potential for Capital Growth
Easier process to buy a propety with no stamp duty
Strong dollar meaning better buying power
You can claim your trip to the Estates if you are going to check on your property once a year.
Cons:
Property Managers are not as professionals as in Australia
Paying over the odds for the propety
Distance - you will be an absentee landlord
Buying in a rought area without knowing
Not easy to get finance in the US
You will have to consider holding on to the property for a while before you see some growth
Pros:
Good rentals - cash flow positive properties unlike Australia
Straong Rental yeids.
Good potential for Capital Growth
Easier process to buy a propety with no stamp duty
Strong dollar meaning better buying power
You can claim your trip to the Estates if you are going to check on your property once a year.
Cons:
Property Managers are not as professionals as in Australia
Paying over the odds for the propety
Distance - you will be an absentee landlord
Buying in a rought area without knowing
Not easy to get finance in the US
You will have to consider holding on to the property for a while before you see some growth
Cash flow or Capital Growth?: cities to consider
Capital Growth or Cash Flow?
High CG - Moderate CF : (From 75k plus)
Charlotte, Nth Carolina,
San Antonio, Texas,
Dallas, Texas
Phoenex, Arizona
Mid/low CG - High CF (for around 40k to 65k USD )
St Louis
Memphis
Kansas City
Atlanta
Only CF (aprox 20k to 35k)
Cleverland, Oh
High CG - Moderate CF : (From 75k plus)
Charlotte, Nth Carolina,
San Antonio, Texas,
Dallas, Texas
Phoenex, Arizona
Mid/low CG - High CF (for around 40k to 65k USD )
St Louis
Memphis
Kansas City
Atlanta
Only CF (aprox 20k to 35k)
Cleverland, Oh
Cities where to buy real estate in the USA - Fast facts: Kansas City
Kansas City (KC)
I have not consider buying in Kansas as I believe it only provides with cash flow and I would like to see some capital growth as well. Its been the focus of many Australian investors.
Demographics: whites 62 per cent black 28 per cent Hispanic 9 percent
I have not consider buying in Kansas as I believe it only provides with cash flow and I would like to see some capital growth as well. Its been the focus of many Australian investors.
Demographics: whites 62 per cent black 28 per cent Hispanic 9 percent
- Located in the state of Missouri, Kansas, is the largest city of the state.
- Over 200 fountains in the city.
- Much of the city's murders and violent crimes occur in the inner core of the city
- Kansas City is headquarters to many fortune 500 including Hallmark
- is one of 10 regional office cities for the US Government
- In 2010 had a population growth of 10percent
Cities where to buy real estate in the USA - Fast facts: Phoenix
Phoenix
Althought I have originally consider this city for my 1st property I believe there is such a oversupply of houses that makes it quite risky in case of losing your tenant.
In recent years as many as a third of new home sales here went to investors and speculators Many of them are now competing with builders to dump their holdings, and prices in some developments have dropped by more than $100k.
- Capital and largest city of the U.S. state of Arizona.
- Has a subtropical climate and has some of the hottest of any major city in the United States with over 110 days in the year with an average temperature of 38 celcius and 5 days per year where the temperature drops to or below freezing.
- Demographigs" 76 percent white -non hispanic- 40.8 percent Hispanic 6.5 African 3 percent asian.
- Home of seven Fortune500 companies.
- In the late 2000 it has earned the title of "Kidnapping capital of the USA" in general the victims are belived to be related to the iligal drug trade.
Friday 2 September 2011
Cities where to buy real estate in the USA - Fast facts: Atlanta
Atlanta
Atlanta its very popular for it's dramatic for a metro region with a population of more than 5 million people.
While the city itself is home to only 400,000 people, the greater region includes 110 municipal governments, each determined to beat its neighbors in growth.
Atlanta is expected to have one of the greatest job growth and commuters from far-flung suburbs are fighting harder each day to get back inside the I-285 "perimeter" that encircles the city. That has already increased the prices in the more desirable north Atlanta neighborhoods, like Buckhead, forcing less well-heeled newcomers to look outside the perimeter for lower prices.
http://www.youtube.com/watch?v=B5C1TliFzxY
Facts:
Atlanta its very popular for it's dramatic for a metro region with a population of more than 5 million people.
While the city itself is home to only 400,000 people, the greater region includes 110 municipal governments, each determined to beat its neighbors in growth.
Atlanta is expected to have one of the greatest job growth and commuters from far-flung suburbs are fighting harder each day to get back inside the I-285 "perimeter" that encircles the city. That has already increased the prices in the more desirable north Atlanta neighborhoods, like Buckhead, forcing less well-heeled newcomers to look outside the perimeter for lower prices.
http://www.youtube.com/watch?v=B5C1TliFzxY
Facts:
- capital and most populous city in Georgia.
- Atlanta is considered to be a top business city and is a primary transportation hub of the Southeastern United States
- Atlanta has the country's third largest concentration of Fortune 500 companies, and more than 75 percent of
- Fortune 1000
- Atlanta has a reputation as the "city in a forest" due to its abundance of trees, unique among major cities.
- Atlanta has a humid subtropical climate, with hot, humid summers and mild winters that are occasionally cold by the standards of the southern USA.
- January averages 42.7 °F (5.9 °C),
- High temperatures in July average 89 °F (31.7 °C) but occasionally exceed 100 °F (38 °C)
Thursday 1 September 2011
Writing a Will for your USA property.
Something very important to consider is that the Will you have made in Australia its not going to have any effect in the USA. Therefore its very important to have another will prepared in the USA. Note that the information below may differ from state to state.
If you fail to make a will before you die (called interstate) your property will be divided between your heirs according to a formula which its fixed by law. Your property does not go to the State unless there are no heirs.
When there is no will there is a personal representative appointed, usually known to you to manage your estate. The cost of this will probably be more than if you had prepared a will and the estate may be subject to a greater court supervision.
Things to take into consideration:
- A will its valid until changed or revoked.
- You can not disinherit your spouse without a properly executed marital agreement
- If you are not going to leave anything to one of your children its a good idea to mention in the will that no provision is being made for that child.
- A well prepared will could reduce the estate and income tax that may arise when you die. Estate taxes are usually the largest cash expense an estate can have.
- Marriage does not void a will (in Florida), but a spouse acquired after you wrote your will may receive the same portion of your estate that he/she would have received if had you died without a will (at least one-half).
- Make sure that if you contact an attorney, he or she should be is certified in Elder Law or Wills, Trusts and Estates.
The importance of setting up an LLC -limited liability company-- for your us property:
Many investors prefer to own the property through an LLC (limited liability company). Some of the benefits are:
- To protect property owners from personal liability
- You pay less taxes and are protected against bankruptcy
- Property can easily be placed in an LLC
- Putting property in an LLC places it out of reach of personal creditors
As per wikipedia definition:
"A limited liability company (LLC) is a flexible form of enterprise that blends elements of partnership and corporate structures. It is a legal form of company that provides limited liability to its owners in the vast majority of United States jurisdictions. LLCs do not need to be organized for profit.
Often incorrectly called a "limited liability corporation" (instead of company), it is a hybrid business entity having certain characteristics of both a corporation and a partnership or sole proprietorship (depending on how many owners there are). An LLC, although a business entity, is a type of unincorporated association and is not a corporation. The primary characteristic an LLC shares with a corporation is limited liability, and the primary characteristic it shares with a partnership is the availability of pass-through income taxation. It is often more flexible than a corporation and it is well-suited for companies with a single owner.
It is important to understand that limited liability does not imply that owners are always fully protected from personal liabilities. Courts can and sometimes will pierce the corporate veil of corporations (or LLCs) when some type of fraud or misrepresentation is involved."
LLC in Georgia
http://sos.georgia.gov/corporations/filing_procedures_llc_2001.pdf
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