Buying investment properties to rent out....
#31
Re: Buying investment properties to rent out....
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!!
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!!
Corgi/gas safe cert- Circa GBP100 pa
Energy effy cert - circa GBP 250
Lettings insurance - circa GBP40 pcm (suggest you consider legal cover for lawyer fees if tenants stop paying and emergency failure cover to cover the plumber/electrician on a Sunday night)
Wear & Tear - min GBP50 pcm = GBP600 pa - pays for a new boiler very few years, carpet replace, leaking taps repair, roof/guttering works etc. It won't work out less than this over a 5-10 year period.
Empty periods - plan on an average of 2 weeks pa - I have had tenants last 4 years and new tenants every year (and there is always a gap, with cleaning, repainting etc).
Tax - you will pay a UK income tax and will need to complete self assessment tax returns each year. NRL1 form when you move to the US (along with P85) to allow you to receive rent gross (otherwise letting agent has to withhold 20% for foreign landlords). When you submit your US tax returns you also need to declare the income, but you can deduct any UK tax already paid. When you sell the property you may well be liable for capital gains tax.
#32
Forum Regular
Joined: Mar 2009
Location: Florida
Posts: 78
Re: Buying investment properties to rent out....
Where the rate will go, nobody knows. But imagine if it went back to 2 dollars to the pound? By doing nothing other than wait, your money would be worth $440k.
Another good mantra is "Buy what you know". Do your research and speak to a financial adviser in UK and USA.
Good luck