Noorah101

She should be careful with investing in a business, though. She's coming to the USA on a K-1 visa and will face several months of being unauthorized to work. If she invests in a business, it should be one where she won't have to do any work for it herself, until she has her EAD in hand.

Rene

Madelina

my parents think i should buy a flat here in the UK... my main motivation here is that, i am taking two sons to the US, and i'd like to put a chunk of money aside to pay for their college education in the future, so that burden doesnt fall to my new husband. With interest rates so low and the market all up and down, seemed like a property in an area where prices are stable, might be a good idea... but now i'm totally unsure! dernit, i can't just have the money sitting in me bank account earning 0.poo percent!

SpoogleDrummer

If it's a bit of security in case things don't work out then you'll need to be sure to get a pre-nuptial. Else if things do go wrong your security will become half your husband's too.

penguinsix

For someone just starting out in a foreign land, I can't really think of a worse investment.

Yes, housing CAN BE a good investment, but it is one that is tied up with a myriad of local legal issues. Landlord tenant law varies not only by state but also by cities at times, the procedures for buying houses varies tremendously in each state, and the market is hyper-localized to a level that absent some real 'on the ground' knowledge you don't really know if the neighborhood you are buying in is the next new new thing or a place to get shot. On top of that, the management of the tenants is a pain in the ass, from broken lightbulb calls at 2:00 am to having to buy a new heat pump for $10,000 in the middle of winter. Oh, and then there is the legal liability issues surrounding the property, should some slip on the stairs and sue you for $1,000,000.

Are you ready for all that? For what--a small profit, maybe?

It's worth noting that if you take out a mortgage for say 30 years, the first 5-10 years will be primarily interest payments you are making.

Honestly, you have a lot of other stuff to worry about in the first six months instead of dealing with a property. My advice is to put the money in a relatively safe investment for six months and do your homework when you arrive. Look at the market, look at houses, talk to management agencies, etc. If after six months of walking around the new city you live you find a bargain and have (more importantly) sorted all the other crap you have to deal with on arriving, then maybe take a stab at it. But for right now, deal with the move and the settling in.

Good luck.

scrubbedexpat099

If you invest in the US for future bills in Pounds you are also running an exchange rate risk.

meauxna

I was going to encourage M, her reasons are all good, but this sensible post and the phone call I just got supports waiting to invest.
That's right. The tenants from the property *next door* called *me* about their sewage overflow problem because their landlord is out of the country!

Sorry kids.. hope it doesn't stink too bad (and no, I'm not coming over to clean it up!)

Jerseygirl

Apart from what everyone else has said...you're not even in the US yet. Give yourself time to familiarize yourself with the people, life in the US, tinder box houses, plus all the rules and regs of letting a property.

meauxna

Stop with the tinderbox house thing!!!

I want to continue living in denial, in my old-growth forest compound.
I don't know why that phrase always gets my goat.

baaaaa

Jerseygirl

If it helps...I hesitated before I typed it.

Bill_S

That phrase comes up in the Canada forums as well.

meauxna

Yeah, but it's true up there.

Seriously, what do these people want, a house made of rocks? What is this, Greece?

Bill_S

Yup, a house made of proper stone.

Then those of us with northern winter experience have to explain freeze/thaw cycles, spalling, seismic zones, insulation...

Madelina

I think after discussing this, i'm leaning towards buying a flat here in my home town, close to the station with direct trains to London, in an area i know, a property market i'm familiar with, and close enough to my parents so they can help with any oh crap moments... i'll spend about £100-£120k, rent out at about £500-£600 per month, pay an agent to manage it, and see how it pans out. Then i'll let the income accrue in my UK bank account and pay for any maintenance and bills on the place, use the money when we make trips to the UK, and eventually sell the flat to provide some funds to invest in the boys' college education (which could well be in USA but that'll be up to them) and in the meantime, i still have the same amount again, to bring to the USA and invest in our home / business / savings.
I love reading all your varied opinions and ideas, and nothing is set in stone, thank you so much for all being here and being so helpful!!

digbydog

A wise (and very wealthy) man said you make all your profit on real estate when you buy not when you sell.

Good luck

meauxna

You made me look up 'spalling'.
Canadian issue.

But I could talk earthquakes all day long. And insulation?! I have no specifics, but that lot we added to the attic actually cut out heating use this year. Fantastic stuff.