Investing in US Property?  Why... How ... Where ... Structures ... Tax implications ... RISKS ...?  

With the high Australian dollar against the $USD, there has been increasing interest from clients and prospects in finding out about investing in US real estate. This has brought out the promoters with claims such as the following:

... will show you how to own... $110K US real estate for just $15K...

Without financing...

With a massive 25% cash-on-cash yield!

Sounds attractive? Yes it does! 

This is the sizzle to get your attention ... very attractive returns ... Low cost entry ... positive cash flows ... ticks all the boxes for an ideal investment.

But ... to get such a result what alligator infested swamps do you have to step through? Is it the apple being dangled by Eve in front of uninformed Adam ... shiny but deadly?

On the other hand ... there is no smoke without a fire ... So If the opportunity is there it would be sad if to miss out – at least, on finding out more of the right information.

Some of the questions being raised by clients and prospects in relation to this type of investment include:

-          What is the situation on the ground in the US?

-          Why invest so far from home?

-          With time and other differences, How can it be managed?

-          is the yield really as good as they claim – 15-25%?

-          Is the high returns before or after expenses and tax?

-          What is a realistic entry price - How much does it cost to get in? What do you get for that?

-          What professional support is needed?

-          What are the risks with owning/managing real estate in the litigious US market?

-          What ownership structures are recommended?

-          What are the tax implications both in US and Australia? Federal, State, Local

-          How can we get the money back to Australia

To start the process of stripping the promotional hype down to the bare bones of reality and practicality, we asked an Australian who has been in the US, purchased renovated and rented out property, hired agents and renovators – she managed the process. Salena Kulkarni will share her experience and current knowledge of the opportunities in the US.

For any investment in the US a legal team is essential. We have been extremely privileged to have a senior US lawyer who represents clients in both Australia and the US. Patrick Fazzone will brief us on the risks of doing business in the US, pitfalls to avoid, ownership structures available, and preferred/suitable tax structures for owning residential rental property.

Acquiring investments is best done with a strategy. This is why we asked Strategy Consultant for financial planning firm Financial Spectrum to brief us on his views on investment on US real estate and how it fits within an overall financial plan – including SMSF.

Your presenters are:

-         Salena Kulkarni – Before turning her attention to property and particularly the US market, Chartered Accountant, Salena started her career  15 years ago with large accounting firm Deloitte in Australia, before acquiring international  experience Europe and the UK,  working for a number of international companies. Since returning to Australia in 2000 she has worked for large multi-national organizations, as well as a number of Consulting firms. Throughout her career she has actively been involved in real estate investing and development.
Her interest in the US residential real estate market began in 2008, and shortly after this she began investing in this market herself. Her structured approach to investing in this market led her to become a national speaker and a leading authority on US property investing in the current climate. During 2009 & 2010, Salena supported many Australian investors in purchasing US real estate.

-        Patrick Fazzone – Partner at Washington DC law firm Butzel Long Tighe Patton, Patrick is a graduate of the prestigious Duke University School of Law. A Fulbright Scholar, Patrick has also taught at Sydney University. He specializes in sophisticated commercial transactions, corporate law, technology transfers and international trade law. However on the night he will brief us on the risks of operating in the US legal environment, how to avoid the basic pitfalls, what tax structures are available for investors, which structures are suited for residential rental property investment.

-        Brenton Tong - Strategy Consultant of independent financial planning group Financial Spectrum. An original thinker and out of the box problem solver, Brenton has more than 20 years experience in the investment and financial planning areas.  Brenton will briefly discuss the place of US real estate within an investment portfolio or  a SMSF strategy . 

-          Date               Wednesday 10^th August  2011

-          Time                Registration 5.45 for 6.15 start – food & coffee

·         Brenton Tong - Financial Spectrum – Financial planning & property – 6.15

·         Salena Kulkarni – Property Developer, Investor in US property  – 6.30 pm

·         Coffee break  7.15 pm

·         Patrick Fazzone  – US attorney  – 7.35 pm

·         Q&A with a panel speakers panel

-          Venue            Masonic Centre  Goulburn Street (Cnr Castlreagh) Sydney – Composite Room

-          Parking           Diagonally across the road on Goulburn Street cnr Elizabeth

Shukri Barbara from Property Tax Specialists will be MC for the evening. Shukri will also facilitate by asking additional questions on behalf of the audience – where necessary.

Click here to register