What services does wHeregroup offer in the USA?
We locate an area in the US to purchase investment properties, based on our extensive research and personal experience.
wHeregroup, with the help of our speciailised and accredited service providers including, accountants, property managers and attorneys will assist guide you with the necessary set ups of your LLC (Limited Liability Company), purchase process and ensure your property has a suitable tenant after purchase.
Do we have to use your mortgage broker service for the finance of the investment property in the US?
We have two companies that fall under the wHeregroup banner, our Buyer’s Agency company plus a Mortgage Broking company (Runna Associates Pty Ltd). If you have a mortgage broker already, you can certainly use them to assist in purchasing a property. All we ask is that we have a formal introduction to ensure we all work as a team to ensure your purchase is as smooth as possible
How do I purchase a property in the USA
You will need to first set up the US purchase structure, what is this? You will need a LLC (Limited Liability Company), a EIN, plus state approvals for the state you are purchasing in. How do you do this? Well, you can begin the google search and do this on your own, alternatively, our clients have access to a US based accountant and attorney who facilities the set up process for you as a wHeregroup client.
How long will it take to set up structure before I'm ready to buy?
We have found that with the required set up, paired with the time taken to communicate back and forth between Australia and the US (United States), it could take anywhere from 4-6 weeks
When do we pay your fee?
If you havent already register here, we can forward you a copy of our agreement which explains the fee process and when payment is due.
How much $$ do I need to invest in the US?
As a minimum, you are required to have between $120,000 to $125,000AUD available to invest in the USA.
What are the anticipated set up costs?
The costs to purchase, we would say $2000 AUD to arrange for all the set up costs, this includes your LLC, EIN and State approvals. You may find these costs are slightly less, but we like to guide you on the maximum so you dont have any other hidden surprises. This service is provided by a US registered accountant, and we make $0 commission for facilitating this for you.
Do I pay stamp duty on my US property?
Firstly, stamp duty is an Australian tax term, and not used in the USA. But, dependent on the state/area you purchase your property in, there are some transfer fees associated with your property purchase. We have accounted for these fees in costs to purchase based on each state, which are provided to you once you are on board and ready to purchase.
Can my Self-Managed Superannuation Fund purchase the property?
First job for you is to confirm you have the required funds available in cash in your Superfund. Second is to obtain advice from your accountant/financial planner as to whether this type of investment meets the goals and objectives of your fund, i.e. is this right for you? If the answer is yes from both of these, then yes you can purchase a property in the USA using your SMSF cash. Note, you cannot borrow to invest in the USA using your SMSF, you must have the cash available.
Do I need to lodge a tax return in the US and Australia?
When you aquire your investment property, you will need to keep the same records that you would had you purchased a property in Australia. I.e rental income, expenses, bills, taxes, insurance etc… you will keep a record of this information and once per annum you will need to lodge your US tax return through the help of your US based Registered Tax agent. Dont worry, we have a contact you can work with. By all means, you can use any accountant you like, we are simply here to assist you where possible.
wHere are the properties located
We do extensive research into wHere to buy and wHy. Depending when you decide to invest and come on board with the wHeregroup will determine wHere we are buying for clients at the time. Our locations and research will only be disclosed specifically to you once the buying process is underway, and you will be as convinced as we are that we are on to the next big boom, before everyone else.. again!
Does wHeregroup receive any kickbacks or hidden commissions?
We are a fee for service buyers agent. You pay us for the service we provide, we receive no further commissions from any additional service providers.
wHo manages my property?
We have property managers in every location that we invest in. The property managers will liaise directly with us initially to ensure your property is advertised for rent, and any necessary works are completed. Once your property has settled, and your tenant has been secured, the ongoing management of the property is then the responsibility of both your property manager and yourself.
The exchange rate what does this mean for me?
The fluctuation in the Australian dollar can impact the cost to purchase, but we have taken this into account when we advise you the costs to purchase – i.e. $120,000-$125,000AUD. When you own the property, you will receive your rent in USD, if the AUD reduces to the USD, this increases the income received as the currency conversion from the USD to AUD is increased.
Do you set up SMSF’s?
No we don’t. We strongly recommend that you obtain financial advice from a qualified Financial Planner prior to heading down this path. We can however recommend some firms who do set them up. Our only advice here is to use companies who do a lot of these. All too often clients have their SMSF’s up with their accountant who has never set one up before and they are done wrong or get bad advice. If your fund is non compliant, the fines are huge. This is one avenue that you don’t want to get wrong!!!