Southern Cross has moved into the USA for Investment property selection for many reasons and all the key indicators point towards a great opportunity for Australians to invest into selected regions that have been analyzed, researched and tick all the boxes for investment.

All locations are fully researched on growth potential / Infrastructure / rental demand and appraised prior to acceptance from Southern Cross

Below are basic FACTS on why we believe the US has great investment potential

1) Prices of housing is exceptionally low due to the historical sub prime over lending creating a crash in the US property market over the past decade. This has created an abundance of foreclosures and short sales. Foreclosed homes were up to 6% of the entire US housing market in 2007. These numbers have now declined and are currently at 3.5%.
(Source: US. Department of Housing and Urban Development Office of Policy Development and ResearchU)Many of these homes reduced to below 1/3rd of their original purchase price. This now gives the market a chance to purchase selected existing housing for between $40,000 -$80,000.

2) The median existing house price in the USA is currently 172,000 compared to Australia’s 501,563 median as of the 30th June 2011
(Source: residex and US. Department of Housing and Urban Development Office of Policy Development and ResearchU)The above chart estimates the market value of today’s median-priced house over a 40-year period, thus controlling for the fact that housing sizes have changed over time. The thick red line represents real house prices. For those unfamiliar with economic terminology, “real” prices are prices that have been adjusted for inflation. The thick blue line represents nominal house prices. The thin lines represent the pre-bubble (1970-1999) trend lines

3)The rental yield in selected regions of the US is substantially strong and stable. The following graph shows how the us housing market prices have fallen however the rental yield has remained stable.

4) The US economy and certain areas of the property market are recovering and showing signs of stable returns due to established infrastructure and vibrant employment hubs.

5) Population in the US is projected to grow from 311 million currently to 363 Million in the next 18 years. That increase is over double Australia’s current population of 22 Million.(source census)
Selected area’s such as Florida are projected to increase in population from 15 million in 2000 to 28 million by 2030. That is over an 80% growth rate in population in 30 years.

Population Projections
Year Florida (thousands) Growth from Previous 5-Year Period United State (thousands) Growth from Previous 5-Year Period
2030 28,686 10.7% 363,584 4.0%
2030 28,686 10.7% 363,584 4.0%
2030 28,686 10.7% 363,584 4.0%
2030 28,686 10.7% 363,584 4.0%

source: US census 2010

Orlando, One of Florida’s largest cities is expected to grow at an even greater rate than its well performing state.

2010 Census Orlando Orange Country Florida
Total population Population, percent 238,300 1,145,956 18,801,310
change, 2000 to 2010 +28.2% +27.8% +17.6%

source: US census 2010 & Proximity One information & solutions.

6) Supply and Demand. With the US lending criteria extremely strict now and the property market considerably fallen in the past decade. New local owner-occupiers are marginal. With the dramatically rising population and increase of demand for livable housing this can only mean a strong demand of rentals.

7) Interest Rates – Are at a 35 year low. Foreign lending is also available for O/S property for Australian Investor.

8) In the U.S.A there is NO STAMP DUTY on property purchases, which will save you thousands in comparison to purchasing completed Australian properties.

Full Complete service with Fully licensed professionals.
  • A fully licensed US buyer’s agent purchases properties direct from US lenders as a short sale or foreclosed property.
  • All properties selected by Southern Cross are FULLY RENOVATED prior to purchase, complete with all brand new appliances including Fridge, Washing machine and dryer, Oven, microwave etc.
  • SCG’s selected properties are CASH FLOW POSITIVE generating strong NET returns after all costs are paid. Many being around 10%-20%.
Southern Cross and our US Alliance partners will organize the following for you!

1) Rental Management: have a tenant ready to move in once fully renovated and your property settles. We engage the best property management company to look after your investment. Our property managers offer the following services:

  • Credit, employment and income checks of prospective tenants
  • Full marketing services
  • Monthly Statements
  • Direct deposit rent into US bank account.

2) Attorneys organize credit checks and title checks to make sure properties are not holding or carry over any unexpected debts. Also confirm and complete the settlement process.

3) Insurance –Arrangements of Rental and Landlord insurance if required so you can have piece of mind whilst back in Australia.

4) Access to US Accountants so you can have your investment structure set up for you by a local company that fully understands, the structure and legal requirements for over sea’s investors purchasing US property. Your USA returns and any Australian tax credits will also be compiled and completed.

5) Finance: Southern Cross has access to a range of products from different lenders suited for foreign investors. Email for more information.

6) Terminology guide: so you understand the procedure and different terminology when purchasing in the USA compared to Australia.

USA Properties can also be structured to be purchased through your own SELF MANAGED SUPER FUND.
Email for more information.

PROPERTY EXAMPLE

INVESTOR DVD

Call our Southern Cross Support Team on 03 9982 4699