PootleK

Hi all

I saw the Alaska thread and it reminded me to ask this question. I'm waiting for my spouse visa to come through. I'm expecting that it'll be at least another year and I probably won't actually living there until the end of 2015.
My plan is to sell a 2nd home I own here and invest in real estate to rent out in the USA (California). Was thinking originally that I'd wait until I'm living out there, but seeing as it's going to be so long am now considering doing it this year. I've also noticed there may be a tax problem with selling a second home when I'm a permanent resident.

Has anyone else done this - bought a rental property in the US whilst living in the UK. Are there any issues about this? How does the tax work? Would I have to get a TIN and hire an accountant to deal with paying taxes to the US etc. Basically just wondering if anyone has any experience of the joys and pitfalls of this.

Thanks
PS - I know I should get professional tax advice etc on this, but just trying to get a feel for it for now

Pulaski

I would strongly advise against buying (residential) investment real estate until you are familiar with the area in which you are buying and can keep a close eye on it (live reasonably near to it).

The high "round trip" costs of buying and selling real estate in the US (typically around 10%) are such that it is usually best (most profitable) to hold property for the long term, and certainly not buy and sell within just a year of two.

PootleK

Thanks for the advice Pulaski, I'm guessing there will be some issues about knowing the exact area to buy in. And keeping an eye on tenants - eek!!

Just to clarify though - I'm looking to make a long term investment and buy another house to live in when I sell my main residence London home. (when I'm ready to move)