What Do You Think About Investing In The US?
What do you think about investing in property in the US? Is it better than investing in Australia and how should you think about it?
Ryan: All right, Lucas has another question. He’s saying “Have you guys bought property internationally?”
Ben: No, I haven’t.
Ryan: Yeah, neither have I. What I want to say about that though, is I have interviewed people who have … Australian people who have successfully purchased property internationally but more so in the USA. But again, it’s the same … not the same as purchasing property in Australia, but in terms of doing your research, understanding the market, and all of that sort of stuff, it’s the same sort of approach.
Unless you’re going to take a risk on someone’s advice that you might trust or might not …
It’s not like a magic goldmine just because it’s overseas. It’s still property that you need to do your research, you need to understand the market, because it’s so easy just to get taken for a ride.
There’s some dude who emails me, I’m not going to say his name, but he’s selling property overseas and he’s, like, pretends that he’s helping people out, but I can see he’s making big commissions on it, and I have no idea if the stuff he’s selling is any good or not.
But it’s just, like, I could just see so many people getting taken for a ride, investing in US property when, really, they don’t know the area, they don’t know the market, they don’t know how it’s different to Australia with …
We have it so easy over here with rental managers, but they don’t necessarily have it like that over there. But there’s so many other traps and things that you need to consider, so I would just [crosstalk 00:01:32].
Ben: You’ve got to remember, as well, that property prices in Australia are the most stable in the world, and they have been the most stable, globally, for the last 30 years. There’s … If you’re chasing capital growth, there’s no more consistent marketplace based on history in the entire world than Australia. So why the hell are you going overseas and taking on all that risk if you’re chasing capital growth? I just don’t get it.
Secondly, I’ve got people that I know, same as yourself, Ryan, that reach out. I was talking to one of them the other day about American property, because I do believe there’s a pretty big opportunity over there, over the next seven or eight years. He’s a buyer’s agent over there, and I said, “Where do you live, man?” He’s like, “San Diego.” I’m like, “Where do you buy?” He’s like, “Kansas City.”
Three and a half hours away from where he lives. I said, you know, “As a buyer’s agent, I can’t even buy Sydney with confidence anymore by not physically being in that marketplace every day.
How the hell do you buy investment grade property, and have those relationships, and know what you’re buying, when there’s not, you know, 100 sales per year in the city, but there’s literally, like, the place is the size of, like, a Melbourne?”
It’s just … It boggles my mind and then I kind of thought, well, this is a reputable brand, like, an Australian buying property over there that’s been helping people, and I just … I couldn’t even believe that that was the reality. It’s just … It’s so dangerous.
You’ve really got to approach it exactly the same way that you’d approach Australia, with a whole new set of rules based on things that happen in Australia just don’t happen over there the same way.
Ryan: That’s the thing. You can make heaps of money over there, and, as you were saying, there is a lot of opportunity, but you need to know that opportunity, and you need to take the time to research that.
You can’t just buy and it’s just magically going to be good, because if that was the case, we wouldn’t have had the 2008, or whenever it was, that massive housing bubble in the States that popped. It’s not just guaranteed.
Ryan: Hey, guys. I hope that you enjoy the answer to this question, which came from my live Q and A episode with Ben on YouTube.
We will be doing more of these in the future. If you want to check out Ben, then he is offering free strategy sessions to On Property listeners. To find out more about that, go to onproperty.com.au/session, and you can see all the details over there. That’s it for today, and until next time, stay positive.
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