An investment fund overseen by Alan Dixon for Australian investors and retirees is buying up homes in New York and New Jersey not to flip them, but to earn “steady, dividend-like returns” by renting the homes out, the New York Times reports.
Dixon says the fund, which has snapped up more than 538 homes, townhouses and brownstones from Jersey City to Brooklyn, is expected to earn returns of about 5 percent for a few years.
But if property values and rents keep going up, those returns could climb to 12 to 18 percent a year, he says. Fund investors won’t be burdened with hefty tax bills, either — Australia will tax their gains at only 7.5 percent, if the homes are held five years or longer. Source: smh.com.au