Invest a flat in England

Old Jan 27th 2020, 9:46 pm
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Default Invest a flat in England

Hi all

I am thinking to invest back in the UK, I used to live in Newcastle. However, I am now considering to invest in a property close to London but not so expensive. Is it Reading or Guildford an good place? Trying to identify some places.

Basically i want to have something there to rent out and then use it if i decide to move.

Thanks
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Old Jan 27th 2020, 9:48 pm
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Default Re: Invest a flat in England

I’d go with Reading over Guildford, purely because of Crossrail which will make it much more rentable. But do your sums very carefully, with the extra stamp duty and the tougher income tax rules for landlords it may not be worth the hassle.
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Old Jan 28th 2020, 12:00 am
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Default Re: Invest a flat in England

Originally Posted by christmasoompa View Post
I’d go with Reading over Guildford, purely because of Crossrail which will make it much more rentable. But do your sums very carefully, with the extra stamp duty and the tougher income tax rules for landlords it may not be worth the hassle.

.... and I'd go for Guildford over Reading Much more upmarket area, with a great town centre and lovely countryside around.......
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Old Jan 28th 2020, 3:13 am
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Default Re: Invest a flat in England

Originally Posted by SanDiegogirl View Post
.... and I'd go for Guildford over Reading Much more upmarket area, with a great town centre and lovely countryside around.......
I guess you don't know much about renting. ..... Do you know many people who rent in "upmarket areas" - sure, a few do, but often only until they have got a feel for the area, then they leave to buy their own place.

But buy in a "renters area" and you will have more tenants to choose from and they will likely stay longer.
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Old Jan 28th 2020, 4:05 am
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Default Re: Invest a flat in England

Originally Posted by Pulaski View Post
I guess you don't know much about renting. ..... Do you know many people who rent in "upmarket areas" - sure, a few do, but often only until they have got a feel for the area, then they leave to buy their own place.

But buy in a "renters area" and you will have more tenants to choose from and they will likely stay longer.
Plenty of renters in Guildford area = it has the University of Surrey within its precinct; and since the OP thought he might want to live there sometime, Guildford is a much nicer area to live than Reading (and I DO know Reading rather well)
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Old Jan 28th 2020, 9:38 am
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Default Re: Invest a flat in England

Originally Posted by SanDiegogirl View Post
.... and I'd go for Guildford over Reading Much more upmarket area, with a great town centre and lovely countryside around.......
I wouldn't live in either personally, both pretty scuzzy towns IMO. Area around Reading is equally upmarket and has lovely countryside, but I'm not sure either of those would be a factor for somebody looking for a flat in a town centre (either to rent or buy).

But out of the two, I'd go with Reading from an investment point of view purely because of Crossrail. It's amazing how many people are now flooding in to the area because of it, lots of people that work in Canary Wharf etc and will be able to get the same commute time from Reading as living on the outskirts of London.
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Old Jan 28th 2020, 4:27 pm
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Default Re: Invest a flat in England

Originally Posted by christmasoompa View Post
I’d go with Reading over Guildford, purely because of Crossrail which will make it much more rentable. But do your sums very carefully, with the extra stamp duty and the tougher income tax rules for landlords it may not be worth the hassle.
Very much this - additional stamp duty, inability to deduct mortgage interest, letting agent fees for full management (for overseas landlord), US income tax applied to all profit at marginal rate are all quite ugly, plus additional FBAR/FATCA reporting and valuations. Upside is the IRS depreciation allowance.

Then we have the usual landlord issues, voids, non-payments, damage etc etc.

Certainly doable, but the OP needs to ensure they are fully aware of the situation and have an appreciation of the proposed new S21 etc amendments.
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Old Jan 28th 2020, 5:21 pm
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Default Re: Invest a flat in England

Originally Posted by Cape Blue View Post
Very much this - additional stamp duty, inability to deduct mortgage interest, letting agent fees for full management (for overseas landlord), US income tax applied to all profit at marginal rate are all quite ugly, plus additional FBAR/FATCA reporting and valuations. Upside is the IRS depreciation allowance. ....
The IRS also allows mortgage interest deduction, as well as management fees, insurance, repairs and maintenance, depreciation on appliances and furniture, such that it is quite possible that there would be very little or even no tax due to the IRS in the USA, even if, hypothetically, there wasn't a credit for tax paid in the UK.
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Old Jan 28th 2020, 5:45 pm
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Default Re: Invest a flat in England

Originally Posted by Cape Blue View Post
Very much this - additional stamp duty, inability to deduct mortgage interest, letting agent fees for full management (for overseas landlord), US income tax applied to all profit at marginal rate are all quite ugly, plus additional FBAR/FATCA reporting and valuations. Upside is the IRS depreciation allowance.

Then we have the usual landlord issues, voids, non-payments, damage etc etc.

Certainly doable, but the OP needs to ensure they are fully aware of the situation and have an appreciation of the proposed new S21 etc amendments.
What additional FBAR/FATCA reporting would there be?
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Old Jan 28th 2020, 8:11 pm
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Default Re: Invest a flat in England

Originally Posted by MidAtlantic View Post
What additional FBAR/FATCA reporting would there be?
It's been a few years since I had the joy of a US tax return, but from memory if the OP currently has no UK assets/accounts etc then they may not be completing those sections, whereas they would need to complete if they have an asset like a rental property.
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Old Jan 29th 2020, 12:32 pm
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Default Re: Invest a flat in England

Originally Posted by Cape Blue View Post
It's been a few years since I had the joy of a US tax return, but from memory if the OP currently has no UK assets/accounts etc then they may not be completing those sections, whereas they would need to complete if they have an asset like a rental property.
No, "Foreign real estate held directly" does not have to be reported on the FBAR or Form 8938. https://www.irs.gov/businesses/compa...r-requirements
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Old Feb 1st 2020, 7:27 pm
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Default Re: Invest a flat in England

Originally Posted by MidAtlantic View Post
No, "Foreign real estate held directly" does not have to be reported on the FBAR or Form 8938. https://www.irs.gov/businesses/compa...r-requirements
As I said it's been a while and from memory - what about the FATCA?

(note I hold property also in a Ltd company and I hear that many newer landlords are doing this due to the mortgage interrest issue)
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